Data literacy

Data literacy refers to the ability to access, read, understand, and effectively use data. Data, a raw form of information that may be difficult to interpret, includes numbers, letters, words, images, or any other material that contains knowledge. Individuals and organizations rely on data to conduct daily operations, make informed decisions, and perform important tasks. People who are data-literate are skilled in viewing data and grasping its importance. They can then use the data themselves or translate it and communicate it into more accessible forms for use by others. Many businesses value data-literate employees and may offer training programs to help people become more proficient in data usage.

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Overview

Data consists of information that contains facts, figures, and other useful knowledge. People and organizations may rely on different forms of data. Individuals might use data when making purchases, while governments may use data to draft laws or set tax rates. Computers use data in the form of ones and zeroes, called binary, to perform programmed functions.

Data is essential for most modern businesses. For instance, a delivery company might maintain several sources of data to keep its operation running smoothly. It would likely need data such as inventories, pick-up points, customer addresses, available delivery vehicles, best delivery routes, and so on. This data might be transmitted verbally, digitally, on paper, in lists, on maps, or in another fashion. Although this large amount of data may seem overwhelming, it is necessary to gather, organize, understand, analyze, and use this data, or the company cannot run efficiently.

Some people use the words “data” and “information” interchangeably. However, these concepts have an important difference. Data is a raw form of information that has not yet been processed, interpreted, or otherwise made easier for people to understand. For this reason, data can be difficult to read. It may be even harder to find the meaning of data, or use data to its maximum potential, making data literacy essential in many fields.

Data literacy refers to the ability to read, understand, and use data in a timely and efficient manner. Without proper use and interpretation, even the most important data will be meaningless. People who are data-literate approach data almost like a new form of language. They understand data sources, how they work, and how they present their knowledge. These people can interpret data, decide how best to use it, and communicate it clearly to others. In this way, people who are data literate are able to “translate” raw data into information that could be understood by less specialized workers or laypeople.

Data can be analyzed in several ways. The first basic step in the process is the ability to ask the right questions about the data. Understanding the data that are relevant and finding ways to test that data are also fundamental in data literacy. The process requires someone to interpret the results and visually present them to others in a clear way. Data literacy also entails being able to help the decision-makers understand what the results mean so they can take the proper course of action.

Again, raw data must be processed into information before it can be analyzed. There are four principal types of analysis: descriptive, diagnostic, predictive, and prescriptive analysis. Regardless of the type of analysis to be done, there can be a standard methodology to process data into information. Consistency in what is being measured and compared is all-important in analysis such that a person is not left “comparing apples to oranges.” According to the Harvard Business School, these six steps are:

  1. Clean up data.
  2. Identify the right questions.
  3. Break data into segments.
  4. Visualize the data.
  5. Use data to answer the questions.
  6. Supplement analysis with qualitative data.

Bibliography

Bersin, Josh, and Marc Zao-Sanders. “Boost Your Team’s Data Literacy.” Harvard Business Review, 12 Feb. 2020, hbr.org/2020/02/boost-your-teams-data-literacy. Accessed 13 May 2021.

Brown, Sara. “Data Literacy for Leaders.” MIT Management Sloan School, 23 Jan. 2023, mitsloan.mit.edu/ideas-made-to-matter/data-literacy-leaders. Accessed 30 Apr. 2024.

Herzog, David. Data Literacy: A User’s Guide. Sage Publications, 2015.

“How to Analyze a Dataset: 6 Steps.” Harvard Business School Online, 8 Mar. 2021, online.hbs.edu/blog/post/how-to-analyze-datasets. Accessed 30 Apr. 2024.

Knight, Michelle. “What is Data Literacy?” Dataversity, 14 Oct. 2020, www.dataversity.net/what-is-data-literacy. Accessed 13 May 2021.

Mandinach, Ellen B., and Edith S. Gummer. Data Literacy for Educators: Making It Count in Teacher Preparation and Practice. Teachers College P/West Ed, 2016.

Morrow, Jordan. Be Data Literate: The Data Literacy Skills Everyone Needs to Succeed. Kogan Page.

Panetta, Kasey. “Champion Data Literacy and Teach Data as a Second Language to Enable Data-Driven Business.” Gartner, 6 Feb. 2019, www.gartner.com/smarterwithgartner/a-data-and-analytics-leaders-guide-to-data-literacy. Accessed 13 May 2021.

Smalheiser, Neil R. Data Literacy: How to Make Your Experiments Robust and Reproducible. Academic Press.