Data and Artificial Intelligence: Increasing Data Literacy for Maximum Business Impact

The proliferation of enterprise data and the growing recognition of its value is no less than transforming the way businesses operate. As organizations across an ever-widening swath of industries become more data-driven, making the most of all this data can help them gain competitive advantage. Data literacy, which amounts to the ability to work with and understand data, has thus emerged as a top priority for businesses worldwide, enabling them to more easily extract critical insights, make informed decisions and drive business growth.

According to a recent survey conducted by Vation Ventures, business impact is top of mind for technology practitioners. Specifically, 75% of our Technology Practitioner Council (TPC) members told us they measure the success of their IT initiatives based on business impact, with another 50% identifying the achievement of strategic outcomes. Data literacy, with its focus on the skills and knowledge required to work with data effectively, speaks to both, as well as to driving data-centered IT initiatives across organizations.

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How Can Data Literacy Help?

The importance of analyzing enterprise data cannot be understated. By promoting data literacy across the breadth of their organizations, businesses can gain more insight into their customers and their operations, giving them the kind of information they need to make better business decisions. Some of the specific ways that data literacy can provide measurable business impact are though:  

• Predicting customer behavior: By leveraging detailed data, companies can anticipate customer preferences and behavior patterns, enabling them to adjust purchasing strategies and optimize inventory levels to meet demand efficiently.

• Measuring campaign performance: Accurate data allows businesses to assess the effectiveness of their marketing efforts, helping them identify successful strategies and eliminate ineffective ones, leading to more targeted and cost-effective advertising spending.

• Managing seasonality: Recognizing seasonal trends is crucial for planning and purchasing. With insights into when demand will peak or drop, businesses can allocate resources and manage inventory with greater precision.

• Getting out in front of supply chain delays: By analyzing ordering and shipping data, companies can foresee potential disruptions in the supply chain and take proactive measures to prevent product shortages, ensuring consistent availability for customers.

• Diagnosing data breaches and cyberattacks: Identifying the root cause of security incidents is essential for safeguarding websites and databases. Preventative measures can be implemented to minimize downtime and maintain business continuity.

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What Technology Practitioners are Saying

When it comes to increasing data literacy in the enterprise, technology practitioners can offer a unique perspective. According to Vation Ventures’ recent Technology Practitioner Council survey, there are a number of ways for businesses to maximize the impact from increasing data literacy and use across an organization. Among the most impactful, they reported, are encouraging data-driven decision-making (68%), providing access to user-friendly data tools (68%) and offering regular training and workshops (55%), all of which clearly go hand-in-hand.

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As far as what organizations are doing to foster a culture of data literacy at present, the number encouraging a culture of data-driven decision making (76%) certainly aligns with those findings. At the same time, however, only 48% of respondents say their organizations provide access to user-friendly data tools, and just 41% say their organizations currently offer regular training and workshops. As conspicuous as these discrepancies may be, what is perhaps most striking about the survey results is the fact that less than half as many organizations (14%) are integrating data literacy into their onboarding as those that think it would be among the most impactful ways to increase it.

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Best Practices for Leveraging Data Literacy to Deliver Maximum Business Impact

While promoting data literacy within an organization can go a long way toward empowering individuals to extract valuable insights, make informed decisions, and communicate findings in meaningful ways, the broader significance of doing so can improve that organization’s ability to do business. To achieve both of these objectives, companies are advised to prioritize the following:

• Establish a clear data strategy: A well-implemented data strategy must prioritize employees and align with the overall business strategy, establishing consistent methods and practices for analyzing and communicating data insights. Data analytics should not be confined to technical experts alone; instead, all departments must participate in enhancing data literacy to access relevant insights. This approach fosters a business culture that views data as a critical tool for better decision-making and performance, making data insights more accessible and valuable across the organization.

• Foster a strong data culture: Aligning data strategies with business operations can be challenging, but establishing meaningful data leadership can help organizations bridge data analytics and broader business objectives. A chief data officer (CDO), for example, can draw on their expertise in informed decision-making to ensure proper data management across the organization. Additionally, an understanding of technology solutions can contribute to selecting the right platforms and software, as well is to promoting professional development, to the extent that all employees are trained in data-related skills, regardless of their technical background.

• Emphasize the importance of storytelling: Storytelling is a powerful, universal language that makes complex data accessible and engaging by transforming it into creative, memorable content. By presenting data in a way that resonates with business audiences, including leadership, organizations can better understand its value. Since such skills enable communication across audiences, be them business or technical, it stands to reason that storytelling is a crucial part of an effective data literacy strategy.

Conclusion

All told, data literacy is rapidly becoming a cornerstone of business success in today’s data-driven world. By cultivating a strong data culture, companies can empower employees at all levels to interpret data effectively, leading to better decision-making and improved business outcomes. Although our survey results revealed there are still gaps in providing the necessary tools, training and onboarding support, the advantages of increasing data literacy are undeniable. As more businesses embrace data-driven strategies, those that invest in promoting data literacy will be better positioned to gain a competitive edge and navigate the complexities of an increasingly data-centric enterprise business environment.

Our Technology Practitioner Council brings together directors and managers in technology focused on specific sectors, including Data and AI. The Council meets quarterly to discover emerging technologies in the space and hear exclusive trends from our Research team. Interested in joining this esteemed group? Get in touch today.