Understanding

and Delivering the

Business Case for
Data Literacy Skills

Understanding and Delivering the Business Case for Data Literacy Skills 1
 P.3 P.5 P.7

Introduction Finding a Home for Data Building a Business

Literacy Case for Data Skills for
Everyone
Table of contents

P.9 P.12 P.15

Applying Data Literacy Building a Data-Literate Endnotes

Skills to the Real World Organization

Understanding and Delivering the Business Case for Data Literacy Skills 2
Introduction

Digital transformations are automating To be successful, however, workers must understand how to use data to make better decisions faster. We have
more and more tasks and causing more data than ever before, and it’s proliferating more quickly than ever. As companies shift to data-driven
operating models and decision-making, it’s clear that data literacy is becoming an integral aspect of most day-to-
another shift in how we value human
day jobs for many employees, from the C-suite on down. Even—and perhaps most especially—frontline workers
contribution in the workplace. People need to be empowered with the skills to make insightful decisions.
are needed less for being producers of
work and more for executing judgment
and making decisions about business When we talk about data literacy for employees, it shouldn’t be mistaken for technical literacy, and it
strategy, processes, and how to interact doesn’t necessarily include the high-level skills needed by a data scientist. Rather, it’s:

with customers. 1. The ability to read, work with, question, and analyze data.

2. The knowledge of how to use data to tell a story, present an argument, and persuade.

3. The ability to make decisions that align with business objectives based on data insights.

4. Using data as a catalyst for efficiency, personalization, problem-solving, and innovation.

Understanding and Delivering the Business Case for Data Literacy Skills 3
Introduction

These 21st-century skills are in high demand and low supply. It’s another manifestation of the growing skills gap
that is preventing businesses from realizing the full value of their technology investments.

This eBook aims to give learning leaders a fundamental understanding of what data—and, by extension, data
literacy—can and will do for an organization. It provides a framework for how to extend the value of data across
the business. With this resource, learning and development (L&D) leaders will have both the knowledge and
the means to drive informed discussions with critical stakeholders and highlight the importance of investing in
meaningful, strategic, and sustainable training that builds data literacy for all.

Understanding and Delivering the Business Case for Data Literacy Skills 4
Finding a Home for
Data Literacy

5
Finding a Home for Data Literacy

A plan for improving data literacy in all employees is critical to achieving the business results anticipated
from digital transformation. It’s a foundational need that is presenting L&D teams with a strategic role in the
transformation process—the opportunity to partner with executive leaders to assess and develop data literacy Data literacy is the buzzword du
in their organizations and across the enterprise. jour that everyone touches, but,
generally, no one owns or owns
L&D leaders may feel unprepared to communicate the benefits of data literacy to critical stakeholders.
However, consider that 67% of executives are not comfortable accessing or using data resources,1 and a budget for.
employees believe only 32% of the C-suite is data literate.2 Data literacy is the buzzword du jour that everyone
touches, but, generally, no one owns or owns a budget for.
67%
of executives are uncomfortable
accessing data resources
Who owns data literacy?
Many enterprise groups have a significant stake in data literacy. The CIO is invested because IT makes data
available and data sits within the systems they manage. The CTO is charged with technology innovations
to constantly enhance and improve how a company’s offerings are delivered. The CMO gleans customer
intelligence and uses it for meaningful personalization and effective campaigns. The CFO has long used data
for revenue models and forecasting. The needs and applications for data are endless. Unfortunately, though,
this often hasn’t translated into ownership—or even advocacy of—data literacy.

Understanding and Delivering the Business Case for Data Literacy Skills 6
But there’s a new chief in town. There are now chief data officers (CDOs) in 65% of companies compared to
only 12% in 2012.3 The growing popularity of the role is shining a spotlight on data as an organizational asset.
It’s proof that we’re waking up to the value of data for customer intelligence, innovation, and more. “Poor data literacy” is the second-
biggest internal roadblock to the
CDO responsibilities are still evolving and only a third characterized the role as successful and established.4
success of the CDO office.
However, organizations that allocate the right resources, influence, and authority to the CDO are four times
more likely to use data successfully to transform their business.5 Half of CDOs have primary responsibility for
data within their firms.6 And, compared to a CIO or director-level manager in charge of data assets, the CDO is
more likely to codify the policies, procedures, and cultural shifts necessary to democratize data and promote
data literacy.7

Of all C-suite executives, the CDO may be in the best position to champion a data-literate workforce. They
elevate the importance of data to that of an asset on equal footing with people, processes, and technology.
The need for data literacy is also underscored by the risks associated with “poor data literacy”—it’s ranked as
the second-biggest internal roadblock to the success of the office of the CDO, behind “culture challenges to
accept change.”8

Understanding and Delivering the Business Case for Data Literacy Skills 7
Building a Business
Case for Data Skills
for Everyone

8
Building a Business Case for
Data Skills for Everyone

Whether the CDO takes charge of data literacy in an organization or not, it’s likely too large a task and too
critical a mission to go it alone. L&D teams will show their value by bringing expertise in how to assess skills,
plan training, scale programs, and engage employees. Even more foundational is the need to develop the By giving voice to this human
business case for data literacy. component that is key to a data-
driven culture, L&D leaders become
Become a strategic business partner
strategic business partners to
Ownership of data literacy may still be undefined for many enterprises, but it doesn’t change the fact that everyone who has a stake in data
making data literacy skills ubiquitous in the workforce—many say as natural as a “second language ”—can add
literacy.
real value. Today, the responsibility to develop data skills currently lies with employers rather than academic
institutions,9 and for a good reason. When learned in the workplace, data literacy skills can be immediately
applied to develop the desired culture of learning, curiosity, and data-driven decision-making.

The ambiguity surrounding who owns data literacy creates a unique opportunity for L&D leaders to plan
training and development programs that align with business needs. By giving voice to this human component
that is key to a data-driven culture, L&D leaders become strategic business partners to everyone who has a
stake in data literacy.10

Understanding and Delivering the Business Case for Data Literacy Skills 9
The suggestion here is not that L&D teams should take on sole ownership of employee data literacy, but,
instead, that they take the initiative to influence and support those who can become the key drivers of data
literacy. Success can occur when business leaders and learning leaders partner to understand the skills The suggestion is not that L&D
needed in an organization, develop a learning plan, and make the skills applicable to specific business needs. teams take on sole ownership
of employee data literacy, but,
instead, that they take the
Challenge the status quo initiative to influence and support
As enterprises grow in data maturity, employees must also grow in data literacy. Learning leaders can shore those who can become the key
up executive sponsorship of data literacy by applying data to their own situations. They can measure the drivers of data literacy.
current state of data literacy, identify the data skills required for specific business needs, and define expected
business outcomes from a learning plan that helps employees arrive at the desired state. In short, learning
leaders should demonstrate their understanding of the business value of data and the need for investing in
data literacy by presenting a data-driven case. Here are some helpful points.

The current state of data literacy

As organizations become more data-driven, data literacy deficiencies inhibit growth11 and cost employers 43
hours per employee per year in lost productivity—translating to over US$100 billion.12 Even organizations with
a high level of data maturity can be crippled by a lack of data literacy.13

Not knowing how to deal with data brings out feelings of stress in employees, which doesn’t bode well for
companies that want to increase reliance on data-driven decisions. Adding data to their workloads caused

Understanding and Delivering the Business Case for Data Literacy Skills 10
one-third of workers to report taking at least one sick day due to stress tied to working with data, and 74%
feel overwhelmed when working with data at all.14 Rather than “figure it out,” 36% of workers said they would
seek alternative methods of solving a problem without using data, and another 14% said they would avoid the A lack of skills at all levels is
task altogether.15 On average, companies make only 48% of decisions based on quantitative information and impeding transformation to data-
analysis—and this number hasn’t moved much in years.16 driven decision-making, with 50%
But it’s not just rank and file employees that are challenged by working with data. Most business leaders say of organizations lacking sufficient
they still rely on experience, gut feeling, or opinions when making decisions.17 AI and data literacy skills to achieve
any business value.18

Required skills

91%
The current state of stress employees feel from numbers gives essential clues about the skills that are needed
and about what isn’t needed. They don’t need to calculate or even identify trends or anomalies—machines
can be programmed to do that. Rather, the ability to be curious, see a story, and reach a conclusion are where of business leaders say improving data insights
in decision-making is still a challenge
skills are needed.

When it comes to creating value from data, businesses must invest in people—people who understand
the business and who are able to make connections between the data and what the business is trying to
accomplish. A company’s ability and commitment to educating and empowering employees with data literacy
skills can determine its success in a data-literate world.19 Currently, 80% of organizations are consciously
investing in developing data literacy to overcome skill deficiencies,20 but 91% of business leaders report that
improving data insights in decision-making is still a challenge.21

Understanding and Delivering the Business Case for Data Literacy Skills 11
Expected business outcomes
Successful companies are enabling frontline employees—like customer service representatives and delivery
and repair workers—with better data and insights to make informed decisions. Enabling employees with When companies treat data as
data is different from adding data to their workload. Instead, it’s giving them the insights they need to make a corporate asset, they are 3
decisions confidently. to 4 times more likely to reap
When workers have trustworthy information and insights based on data, companies have higher customer the benefits of data-driven
and employee satisfaction.22 Companies that empower employees with data to understand their customers decision-making.
better can serve them better.

Connect data-driven decision-making to business performance

There is also a direct connection between data-driven decision-making and business performance. Firms that
adopt data-driven decision-making have output and productivity that is 5–6% higher than what would be
expected given their other investments and how they use information technology.

The relationship between data-driven decision-making and business performance also appears in other
measures such as asset utilization, return on equity, and market value. These results suggest that a company’s
capabilities with data-driven decision-making can be modeled as intangible assets, which are valued by
investors and which increase output and profitability.23 When companies treat data as a corporate asset and
make it central to enterprise business strategy, they are three to four times more likely to reap the benefits of
data-driven decision-making.24

Understanding and Delivering the Business Case for Data Literacy Skills 12
Applying Data Literacy
Skills to the Real World

13
Applying Data Literacy Skills to the Real World

While a data-literate professional does not need to be an expert in Python or SQL, they do need to take outputs from
data analysts, data scientists, and business intelligence software and use that knowledge to make strategic business
decisions. They become the link between data science and using that output for business strategy and growth.

Enhance business acumen with data literacy

An important part of a successful data literacy program is understanding how data literacy drives business results.
The combination of data and business skills in workers packs a powerful punch. Here’s why.

They understand business objectives They understand the how’s and why’s of They understand the value of data
Many non-technical employees are well-versed in the business
data collection storytelling
problems they need to solve. This skillset supports their interaction Data-literate individuals are curious, skeptical, and persistent. The ability to interpret data allows leaders at every level to present
with data scientists—they can work together to get the right data to They have an understanding of how data is collected and what it information as a story that helps decision-makers see the big
answer the right question. does and doesn’t say. They know what level of trust they can have picture and have the confidence to act. They use data to make
in different data sets and methodologies to appropriately qualify claims about what the barriers to and opportunities for success
responses and decisions when acting on data. are. They can visually present data as evidence for their claims and
justify a recommended course of action.

Understanding and Delivering the Business Case for Data Literacy Skills 14
Create data-literate teams across the workplace
Data-literacy skills have benefits across industries and departments. They can help apply data to specific
problems such as how to increase productivity and efficiency, optimize schedules and assignments, forecast
and increase revenue, and acquire and retain customers—to name a few. Consider the following examples.

Manufacturing Sales Marketing

Manufacturers regularly pursue increased productivity. One An inside sales team trying to hit an end-of-quarter goal for closed A marketing team focused on customer retention gathers data on
manufacturer that believed operator turnover was the source of deals increases their efficiency with the right data. Using predictive how often their best customers use products or interact with the
productivity problems discovered a different story after reviewing analytics, they can identify and reach out to prospects with the company. Understanding engagement data like this can help them
and analyzing data on every workstation, every part, and every highest likelihood to close that week. Deciding to spend time build incentives for other customers to engage in a similar way.
operator over time. The data made it clear that the problem was contacting those people will help meet the objective better than It informs a new customer success program that results in higher
with certain operators who struggled only at certain stations. The pursuing an audience segment that may have a propensity for renewal rates and increases revenue.
manufacturer decided to reorganize the assignments to optimize larger deal sizes but is still three months out from close.
which workers were at which stations, and productivity jumped.25

Demonstrate success with real-world projects

To demonstrate the success of a data literacy program, pair the initiative with hands-on, high-value projects
where measurable performance indicators have been identified. This will frame data literacy as more than a
good skill to have—it will be something with tangible benefits that drives real results.26

Understanding and Delivering the Business Case for Data Literacy Skills 15
Building a Data-Literate
Organization

16
Building a Data-Literate Organization
Case Study

With an understanding of how data literacy impacts business and how it applies to every employee, the real
In partnering with Coursera to upskill
work of building a program takes center stage. A successful data-literacy program can scale to meet everyone’s
employees in data and analytics
needs and is flexible enough to meet employees at their current skill level. It will also be customizable for the
unique needs of any team. But most importantly, the evaluation of the program will generate new data that skills, Exelon recorded success when
can be used continually to refine an ongoing initiative. graduates from a data program
used their new skills to complete 10
complex projects that amounted to
Create flexibility for a variety of skill levels an estimated savings of USD $2–3
Identifying the data literacy needs of your organization begins with deep honesty about its current state. million. Employees also identified
Invariably, there will be various levels of data literacy across the enterprise and even within the same teams. 3,088 hours of work that could
This requires flexibility so that those with fewer skills are not overwhelmed or left behind and those with more be simplified or automated using
skills still find value. analytics. This translated to savings
Just as everyone starts at a different data proficiency level, everyone does not need to end at the same level of another USD $130,000. Read more
either. Establish the data skills required for individual roles or teams and cater learning paths that map back to about Exelon’s data-literacy program.
them. Identifying which skills are most in-demand, makes it easy to define a set of pathways that develop the
most important skills for each employee.

Understanding and Delivering the Business Case for Data Literacy Skills 17
Customize the program to your business
Beyond flexibility to address the needs of individual learners, it’s also key to customize a data literacy program for With a customized data literacy
the specific organization. Building these skills internally by tailoring learning programs for how the organization program, you can guide employees
does business is more cost-effective than generic courses or hiring outside talent. This is due to the embedded
through skill-development training
knowledge and domain expertise that current employees already have.
with real-life applications. This
With a customized data literacy program, you can guide employees through skill-development training with ensures that learners understand
real-life applications. This ensures that learners understand how to apply their new skills within the context of the
how to apply their new skills within
organization. They can pose questions relevant to their current roles and answer them based on data available in
the context of the organization.”
their organization.

Close the loop with data on skill acquisition and industry benchmarks
Classic learning metrics such as tracking hours spent learning or the number of licenses or logins aren’t enough to
determine bottom-line success. When a data literacy program is custom-built, you’ll want to track skill acquisition
and its effect on business goals. Continuously assess both technical and human skill development through in-
course assessments that are embedded in hands-on learning courses.

Another important evaluation metric is how well employees are performing relative to their peers. With an online
learning partner, you can tap into anonymized data that helps benchmark progress against others in your industry.
In the data-driven culture you’re building, this information can help gain continued support for your efforts—
whether it’s needed to rally the troops or to report on the leadership position you’ve helped establish.

Understanding and Delivering the Business Case for Data Literacy Skills 18
Conclusion

Partnering for success will transform the future

Data literacy is too big and too important attempted
by any single leader. The business need and potential
beenfits are clear. When L&D teams can partner
with the CDO and other business leaders they will
most likely find success with skill development and,
ultimately, business outcomes. Together they can
assess data literacy needs and develop learning paths
for a variety of skill levels and applications.

Similarly, L&D teams should also partner with a

learning solutions provider to help deliver the right
level of target skill development tailored to every
employee role. The ability for learners to immediately
apply skills and organizations to measure business
impact ensures quick wins and ongoing support for
data literacy across the enterprise.

Understanding and Delivering the Business Case for Data Literacy Skills 19
End Notes

1. “Analytics and AI-Driven Enterprises Thrive in the Age of With™: The Culture Catalyst,” Deloitte, 2019. 21. “Data Literacy Matters: The Writing’s On The Wall,” Forrester, January 2020.
2. “Lead with Data™ How to Drive Data Literacy in the Enterprise,” Censuswide and Qlik, 2018. 22. “Meet the New Decision Makers,” Harvard Business Review and ThoughtSpot, February 2020.
3. “Big Data and AI Executive Survey,” NewVantage Partners, 2021. 23. E. Brynjolfsson, L. Hitt, H. Kim, “Strength in Numbers: How Does Data-Driven Decisionmaking Affect Firm
4. Ibid. Performance?” Available at SSRN, 2011.
5. Beth Stackpole, “Making the business case for a chief data officer,” Ideas Made to Matter, Feb. 8, 2021. 24. Beth Stackpole, “Making the business case for a chief data officer,” Ideas Made to Matter, Feb. 8, 2021.
6. “Big Data and AI Executive Survey,” NewVantage Partners, 2021. 25. Warren Andrade, “Process Improvements in Manufacturing Using Data Analytics,” Pinpoint Blog, Oct. 1, 2020.
7. Beth Stackpole, “Making the business case for a chief data officer,” Ideas Made to Matter, Feb. 8, 2021. 26. Sara Brown, “How to build data literacy in your company,” Ideas Made to Matter, Feb. 9, 2021.
8. “Chief Data Officer Survey,” Gartner, Jan. 29, 2018.
9. Josh Bersin and Marc Zao-Sanders, “Boost Your Team’s Data Literacy,” Harvard Business Review, Feb. 12, 2020.
10. John Mattox and Peggy Parskey, “How Learning and Development Leaders Can Develop Data Fluency,” Training
Industry, July 20, 2020.
11. “Chief Data Officer Survey,” Gartner, Jan. 29, 2018.
12. “The Human Impact of Data Literacy,” Accenture and Qlik, 2020.
13. Piyanka Jain, “Data literacy training: What you need to know,” The Enterprisers Project, Nov. 12, 2020.
14. “The Human Impact of Data Literacy,” Accenture and Qlik, 2020.
15. Ibid.
16. “Data Literacy Matters: The Writing’s On The Wall,” Forrester, January 2020.
17. Ibid.
18. Kasey Panetta, “A Data and Analytics Leader’s Guide to Data Literacy,” Smarter with Gartner, Feb. 6, 2019.
19. “The Human Impact of Data Literacy,” Accenture and Qlik, 2020.
20. Kasey Panetta, “A Data and Analytics Leader’s Guide to Data Literacy,” Smarter with Gartner, Feb. 6, 2019.

Understanding and Delivering the Business Case for Data Literacy Skills 20
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Analytics Academy

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Understanding and Delivering the Business Case for Data Literacy Skills 21