As the acceleration of digitalisation and advances in machine learning and computing power continue to fuel a new age of big data, its effective analysis is coming to play an even more integral role in modern business practice. Get it right and the effective use of data can boost productivity, create new opportunities, improve services, enhance employee engagement and position businesses at the forefront of innovation.
Surprisingly then, the data literacy gap remains as wide as ever, with it evident that it is often those in the highest positions of a business that are typically the least data proficient. But if companies are to keep pace, this must be addressed with a much more concerted, company-wide approach to data, comments Natalie Cramp, CEO of Profusion.
As people have come to conduct more of their business and personal lives online than ever before, the world’s data volume has become almost unimaginably big. Every day it is estimated that approximately 306.4 billion emails are sent, 500 million Tweets are made and around 2.5 quintillion data bytes are created. By this year, 70 per cent of the world’s GDP will have undergone digitalisation and over the next few years up to 2025 global data creation is projected to grow to more than 180 zettabytes.1
This new data creation presents a powerful opportunity for businesses to consolidate their strategic insights and, in turn, meaningfully advance growth ambitions.
Done well, the analytical power of big data can help achieve better predictability, equipping businesses with increased forecast accuracy so they can plan and take action accordingly.
It can help companies pinpoint exactly what their customers are looking for and create tailored, hyper-personalised experiences designed to trigger brand loyalty. It can also be used to identify upsell opportunities, leverage emerging trends and distinguish what new product updates would fit the existing customer base.
The list goes on, but the significance is clear – data is an essential tool that any business should have in its armoury when priming for growth. This is echoed in a recent Forrester study which states, “Data skills have risen in importance over the past five years and the trend isn’t likely to stop anytime soon.”2
It is, perhaps, surprising then that the data literacy gap remains one of the most pressing obstacles in achieving the wider data-driven mandate.
Mind the Gap
According to Gartner, “By 2020, 50 per cent of organisations will lack sufficient AI and data literacy skills to achieve business value.”3
At Profusion, we recently conducted research4 amongst business leaders which revealed that, on average, CEOs tend to have the least understanding of data and statistical concepts compared to their leadership team and managers. This was in tune with a pretty poor standard level of data education found among most senior professionals.
The impact of this top-heavy data literacy gap cannot be underestimated. While once only required for employees within data analytics and business intelligence teams, the ability to interpret data is now a common and essential task in every business remit and ranking.
Today, whether it’s an employee working in finance, HR, product development or marketing, more than ever, the ability to understand data, interpret it and use those insights to make collective, informed and overall better decisions is increasingly aligned to success.
This becomes even more important as developing trends such as Artificial Intelligence (AI), Virtual Reality (VR) and 5G hyperconnectivity continue to push a new age of bigger data.
Business Benefits
Of course, as busy businesses look towards new challenges and opportunities afforded by the New Year, upskilling on data literacy may appear to be the least of their priorities.
However, it’s an investment worth making. As demonstrated by numerous studies across the globe, organisations that achieve data literacy reap significant rewards. According to research from the Data Literacy Project, enterprises with higher corporate data literacy scores can have $320-$534 million in higher enterprise value.5
This is indicative of our work at Profusion too. Working closely with clients to transform their data into actionable insights, we continue to add immeasurable value – empowering senior teams to make better decisions, influencing successful new business developments, and even helping clients to recruit the right talent aligned to wider organisational goals
But for us, it isn’t just about providing expertise but equipping our clients with the knowledge and tools to understand how data and artificial intelligence can help them.
In this vein, our Data Academy offers a powerful upskilling programme that has been purposely designed for organisational leaders and managers. Through a combination of practical and theory-based learning delivered by our expert team, this short programme continues to empower individuals to become more informed and collaborate successfully with their data team to drive business value.
Fit for the Future
In this fast-paced, digital world, the effective use of data is no longer just a key business tactic but a driving force of the modern economy.
In this way, it can no longer be limited to just a few data experts but must become a company-wide initiative, where employees at all levels are empowered to ask the right questions of data and technology, build knowledge, make decisions, and communicate meaning to others.
Of course, this may require investment in upskilling and extra resources. However, as more businesses come to realise the direct correlation between better data literacy and business success, the inevitable transition towards a data-centric culture will enable better results, create new opportunities and ensure they remain fit for the future.
Sources
1 https://techjury.net/blog/how-much-data-is-created-every-day/#gref
2https://www.tableau.com/about/blog/2021/6/bridging-data-literacy-gap-between-academia-and-workforce
3 https://automatedinsights.com/blog/what-is-data-literacy-and-why-does-it-matter/
4 Profusion data literacy research amongst 300 senior professionals, August 2021
5 Data Literacy Project, enterprises with higher corporate data literacy scores can have $320-$534 million in higher enterprise value.5
