Why it is important to get your business data literate?

Data literacy is becoming increasingly important in today's digital age, where data is being generated at an unprecedented rate.

Companies can now collect vast amounts of information on their customers, employees, and operations. However, having access to data is not enough. To truly benefit from it, businesses must be able to analyse, interpret, and apply insights from the data. This is where data literacy comes into play.

Data literacy refers to the ability to read, interpret, and communicate data. At its most advanced level, data analysts and scientists are highly skilled in data analysis and can use a range of analytical tools to extract complex insights from data.

However, there is a growing need and major benefit in today’s digital age for ALL employees to be able to read, understand and interpret basic data, and this is often where there is a gap for employers.

​There are increasing numbers of sources talking about the huge skills gap in data science and the need to improve data literacy skills within industry:

• A survey conducted by YouGov in 2020, showed that only 26% of UK adults feel confident in their ability to read and interpret data, while 38% feel they lack the necessary skills.

• The World Economic Forum has identified data science as the industry with the largest skill gap.

• A Data Skills Gap study commissioned by the UK Government in 2021, reported that 48% of businesses questioned were recruiting for roles that require hard data skills but 46% had struggled to recruit for these roles over the last 2 years

• Datacamp reported in 2021 that there are three times as many data scientist job posts on LinkedIn as there are data scientists in the world.

• Qlik’s report developed in collaboration with the Data Literacy Project and The Future Laboratory, Data Literacy: The Upskilling Evolution, shows that data literacy is set to be the most in-demand skill by 2030, with 85% of executives believing these skills will be as vital in the future as the ability to use a computer is today.

A recent survey by Datacamp https://www.datacamp.com/blog/why-is-data-literacy-important provided compelling research on why improving data literacy is a key benefit for business growth and development.

2 key facts that particularly resonate with us from our experience of working with clients to improve data literacy are:

• 74% of respondents agreed that employees equipped with data literacy skills outperformed those without the same fundamental data skills.

• Over 70% of leaders engaged in data upskilling have experienced more than 70% improvement in quality and speed of decision-making innovation, customer experience and employee retention.

Here are some of our key reasons for businesses to improve their data literacy:

1. Better decision-making: Data literacy enables business leaders to make data-driven decisions. By analysing data, businesses can identify patterns, trends, and opportunities that may not be immediately apparent. With this information, companies can make more informed decisions that are based on evidence rather than intuition.
   

2. Improved efficiency: With data literacy, businesses can streamline their operations and processes. By analysing data on customer behaviour, for example, companies can identify areas where they can improve customer service and satisfaction. By analysing data on production processes, businesses can identify bottlenecks and areas for improvement, leading to greater efficiency and productivity.
   

3. Enhanced competitiveness: In today's competitive business environment, companies that can effectively use data to their advantage have a significant advantage over their competitors. By understanding their customer's needs and preferences through data analysis, companies can develop products, services, and marketing that are tailored to their target audience. This can help businesses stand out in a crowded market and gain a competitive edge.
   

4. Better risk management: Data can also help businesses identify and mitigate risks. By analysing data on customer complaints, for example, companies can identify potential issues and address them before they become major problems. By analysing data on market trends, businesses can anticipate changes in demand and adjust their strategies accordingly.
   

5. Improved communication: Finally, data literacy can improve communication within a business. By being able to read and interpret data, employees can better understand the metrics that are important to their role. This can help them communicate more effectively with their colleagues and managers, leading to better collaboration and more efficient decision-making.

There are several ways in which businesses can improve their data literacy. At MoJo when we work with clients on data literacy, we look at the 3 core areas of Data Strategy, Data Culture and Data Training.

To find out more about our approach, take a read of our other Blog “Developing Data Literacy Skills in Your Business” or get in touch with us at hello@wearemojo.co.uk, and we’d love to chat it through with you.