Data Literacy: What’s the big deal?

Introduction

In the modern world, where approximately 328 million terabytes of data are created each day, the ability to understand, interpret, and effectively communicate data is no longer optional; it's a necessity. In this article, we dive into the theoretical underpinnings of data literacy and explore its core.

Data literacy encompasses a series of interconnected skills that empower individuals and organisations to navigate the complexities of data analysis. It begins with data collection, progresses through processing and analysis, and culminates in data interpretation.

Data literacy intersects with digital literacy, forming a symbiotic relationship that enhances critical thinking and information evaluation. While digital literacy encompasses a broad range of skills, including digital communication and technology use, data literacy focuses on specialised skills such as analysis and statistical reasoning. The fusion of these literacies underscores the importance of critical analysis in handling data effectively.

‍

Benefits of Data Literacy

Strong data literacy skills go hand-in-hand with improved critical thinking. Being able to accurately question, evaluate, and interpret the information at hand will naturally result in a more structured and objective approach to problem-solving. This, in turn, enables individuals to make informed decisions based on evidence and analysis.

With a better understanding of data comes the ability to explain your processes, findings, and ultimately, decisions in a much clearer and more concise manner. This high-level communication, along with the ability to adapt successfully in a rapidly evolving technological landscape, should lead to your career advancing more quickly than those without the relevant data literacy skills. Let’s unpack a few of the many benefits one can expect from improving their data literacy skills:

‍

Critical Thinking: Interpreting data requires critical thinking skills. Data literate individuals question assumptions, evaluate the reliability of data sources, and draw meaningful conclusions from the information at hand.

‍

Problem Solving: Analysing data allows for a more structured and objective approach to problem-solving. Those with strong data literacy skills can identify patterns, trends, and outliers in data, leading to more effective solutions.

‍

Informed Decision-Making: Data literacy enables individuals to make informed decisions based on evidence and analysis. In business, academia, or everyday life, being able to interpret and understand data empowers people to make better choices.

‍

Effective Communication: Data literacy goes together with the ability to communicate findings effectively. Be it presenting insights to colleagues or explaining results to clients, the ability to articulate the significance of data is a crucial skill (Figure 1).

‍

Adaptability: In a rapidly evolving technological landscape, being data- literate enables individuals to be more adaptable to change. Whether it's new software, tools, or data formats, those with strong data literacy skills can quickly adapt and continue to contribute effectively.

‍

Career Advancement: In the professional realm, data literacy is highly valued. Many industries, from finance to healthcare, now rely on data- driven insights. Employees who can navigate, analyse, and interpret data are often more sought after and can advance in their careers more rapidly (Figure 2).

‍

Ethical Considerations: Understanding data also involves being aware of ethical considerations surrounding data usage and privacy. A data-literate individual is more likely to handle data responsibly and be compliant with ethical standards and regulations.

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

‍

Domestic Data literacy

Domestic data literacy is the ability to read, understand, create, and communicate with data in everyday life. It’s not just for tech wizards, but parents, students, retirees, and anyone who interacts with information. In a highly competitive and data driven world, it’s easy to see that data literacy is important for recognising opportunities, improving our personal health, and optimising our efforts for efficiency. Lifestyle choices and habits established on a data literate foundation have numerous benefits related to the quality of our lives.

Choices such as food preferences, exercise strategies, and media content consumption have direct influence on our mental health, which in turn has a direct influence on our productivity and decision making. These choices also affect our personal and professional relationships in one way or another. Leveraging data literacy as a tool for maintaining strong social connections allows us to strengthen bonds, build trust, reduce pain and even lower blood pressure, boosting our overall confidence and self-esteem as a result.

Domestic data literacy is important for parents looking to raise their children in the best way possible. As a data literate parent, you can decipher health statistics, evaluate financial decisions, and make informed choices for your family. Introducing children to good, data literate habits from an early age sets them up for success in a highly competitive and data driven world. These data driven habits contribute significantly to their childhood experience. One study by (Bethell et al., 2019) investigating the association between childhood experiences and adult mental and relational health found that “adults who reported higher positive childhood experiences had lower odds of adult depression and/or poor mental health, and greater social and emotional support.” With greater social and emotional support, individuals can focus their efforts on personal growth and further strengthen bonds with loved ones.

Armed with data literacy as a tool for navigating the complexities of a digital and data driven era, you have the ability to question, critically assess assumptions and become a smart consumer who compares reviews, analyses features of products before committing to a purchase, ensures that their personal information is protected, and is able to safeguard against cyber threats and phishing emails.

In short, once you master your personal data, you’re a step closer to thinking like a business stakeholder whose everyday tasks are to reduce risks, optimise resource utilisation and make data driven decisions for the company.

‍

Organisation Data Literacy

Irrespective of their scale, organisations need to leverage their data to maintain a competitive edge in today’s market. According to a survey conducted by (DataCamp, 2023, p. 15), “66% of company leaders stated that they would be willing to pay a higher salary to a candidate with good data literacy skills over a candidate without them, with 77% of those who said yes claiming they would pay at least 10 to 15% extra.” This highlights the value stakeholders place on having an excellent data literate team within the workplace. 41% of those participants also identified inaccurate decision- making as the primary risk associated with insufficient data skills. Good data literacy skills significantly influence decision-making within organisations, leading to:

‍

Improved Company Policies – This allows organisations to mitigate unnecessary risks and legal disputes, enhance data management and governance, and strengthen safety and compliance policies within the organisation.

Recognised Opportunities – Data driven questions and decision-making lead to innovation and improved customer service, resulting in a good brand reputation and customer retention.

Productivity and Performance - Data literacy improves productivity and efficiency in the workplace which results in operational efficiency, revenue growth and cost reduction.

‍

Data literacy extends across the entire organisation. Therefore, every employee – from top management to front-line staff – requires a fundamental understanding of data literacy to ensure that the business stays competitive and compliant. We can categorise data literacy roles based on whether they demand a technical or non-technical understanding of data. For instance:

• Company leaders & Stakeholders often need non-technical data literacy skills tobe able to understand, communicate and make data driven decisions. This includes the ability to draw insights from data in various representations and a basic understanding of statistics to understand the significance of the data.
• Data professionals such as Data Scientists and Data Analysts need both technical and non-technical data literacy expertise to analyse, draw insights, and communicate their findings effectively. Data professionals often need advanced statistical knowledge to summarise the data into strategic visual representations for stakeholders.
• Every other role within the company that does not work directly with data needs non-technical data literacy skills to ensure compliance with regulations, efficiency, and productivity.

‍

Obstacles & Solutions

As we strive towards a society well-versed in data literacy, we encounter several obstacles along the way. Access to quality data is often limited, and data comes in diverse formats lacking standardisation. Moreover, inherent cognitive biases can distort our interpretation of data, hindering effective decision-making.

‍

• Biases, such as confirmation bias and overconfidence, pose significant obstacles to data literacy. These biases can lead to misinterpretation of data and flawed decision-making. For instance, a marketer might interpret customer data in a way that confirms their existing beliefs rather than providing an objective analysis. To mitigate these biases, organisations must foster a culture of diversity in thought, implement structured decision- making processes, and provide regular training on recognising and addressing biases.

• One of the most critical challenges is the accessibility and quality of data. The bedrock of sound data analysis is the availability of accurate and relevant data. However, there is a significant disparity between developed and developing countries in terms of data quality across sectors such as healthcare, education, and small businesses. Developed countries tend to score high in data quality, while developing countries lag with low to moderate scores.                                                                                                                                                                                                                       ToTo To address this gap, concerted efforts are needed to promote open data initiatives and invest in data infrastructure, particularly in underserved regions. Bridging this divide is essential for fostering a globally data-literate society.

• Another significant hurdle is the lack of standardisation in data formats and sources. The spectrum of data formats is broad, reflecting the vastness of data generation. While this variety is a testament to the richness of data, it introduces complexity in integration and analytical efforts. Standardising data formats and sources is crucial for streamlining data integration and maximising the potential of available information.

‍

Mastering data literacy is an ongoing journey of learning and growth. By acknowledging and addressing these obstacles, we can pave the way for a more data-literate society, where individuals and organisations are empowered to make informed decisions based on accurate and insightful data analysis.

‍

Key Take Aways & Conclusion

In conclusion, it's evident that data literacy is not just a desirable skill but in fact a necessity in our increasingly data-driven world. From individuals navigating their personal data landscapes, to organisations leveraging data for a competitive advantage, the benefits of data literacy are undeniable.

In this article, we have explored the interconnected skills of data literacy and the myriad benefits it offers, from improved decision-making to enhanced career advancement. Navigating the path to data literacy presents its own set of obstacles, including restricted access to reliable data, absence of universally accepted data standards, and ingrained cognitive biases, all of which pose significant challenges to overcome. By investing in education, promoting open data initiatives, and fostering a culture of diversity in thought, we can overcome these obstacles and harness the full potential of data literacy to drive innovation, productivity, and informed decision-making in both our personal and professional lives.

‍

References

Bethell, C., Jones, J., Gombojav, N., Linkenbach, J., & Sege, R. (2019, September 9). Positive
         Childhood Experiences and Adult Mental and Relational Health in a Statewide Sample.
         JAMA Pediatrics, 1-10.doi:10.1001/jamapediatrics.2019.3007

DataCamp. (2023).The State of Data Literacy Report2023. DataCamp. Retrieved April 25, 2024,
         from https://www.datacamp.com/blog/introducing-state-of-data-literacy-report

Qlik. (2022). Data Literacy: The Upskilling Evolution. Data Literacy. Qlik. Retrieved April25, 2024,
         from https://pages.qlik.com/rs/049-DKK-796/images/upskilling-evolution-en.pdf