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What is Data Literacy?

Last updated May 2, 2023 - Edit Source

Data literacy is the ability to read, work with, analyze, and argue with data in order to extract meaningful information and make informed decisions. This skill set is crucial for employees across various levels of an organization, especially as data-driven decision-making becomes increasingly important.

Organizations should invest in data literacy training programs to empower their employees with the necessary skills to effectively engage with data. A data-literate employee can read charts, draw correct conclusions, recognize when data is being used inappropriately or misleadingly, and gain a deeper understanding of the business domain. This enables them to communicate more effectively using a common language of data, spot unexpected operational issues, identify root causes, and prevent poor decision-making due to data misinterpretation.

Examples of data literacy in action include:

By nurturing a data-literate workforce, businesses can improve their ability to make informed decisions, drive innovation, and achieve better outcomes.