Data Literacy: Are YOU Guessing or Do you KNOW?

Why Data Literacy Matters: A Simple Guide

In today’s world, data surrounds us. Yet, many struggle to effectively interpret or utilize data in meaningful ways. This gap highlights the critical importance of data literacy.

What is Data Literacy? Data literacy is the ability to read, understand, create, and communicate data as information. It empowers individuals to make informed decisions based on clear evidence.

Understanding Key Terms:

Information, Knowledge, and Data:

• Information: Organized and processed data presented clearly. (Example: A sales report summarizing monthly transactions.)
• Knowledge: Insights gained from analyzing information. (Example: Understanding why sales increased due to a specific promotion.)
• Data: Raw facts, figures, observations, or media without interpretation. (Example: Individual sales transactions, customer emails, photos, or videos.)

Why Information Isn’t Necessarily Data: Data becomes information when it is processed and presented clearly, making it useful. Think of data as ingredients (like flour, sugar, eggs) and information as the baked cake. Ingredients alone don’t give you the final product until you process them.

Types of Data:

• Quantitative Data: Numerical information. (Example: Number of visitors to your website.)
• Qualitative Data: Descriptive information. (Example: Customer reviews and feedback.)
• Media Data: Visual or audio materials. (Example: Images, videos, podcasts.)

The Data Life-cycle: Consider Your Responsibility

Understanding the data life-cycle helps ensure effective data management and informed decision-making. The life-cycle typically includes:

1. Creation: Where and how data is generated.
2. Storage: Keeping data secure and accessible. This can involve storing data in the cloud (online, remotely hosted) or on-premises (stored locally, physically within the organization).
3. Use: Applying data to make decisions responsibly, within the limits of what customers or stakeholders were informed about when data was collected.
4. Sharing: Distributing data and insights ethically, ensuring privacy and appropriate use.
5. Archiving/Deletion: Storing data long-term according to established records retention schedules, or responsibly disposing of it when it’s no longer needed.

Understanding Collection Requirements: Federal vs. State

Before data can even enter the life-cycle, understanding how you can collect data is critical. At the federal level, data collection typically requires approval through an Office of Management and Budget (OMB) form. Without this approval, collecting data could lead to legal repercussions, decreased trust, and potential harm to individuals whose data is collected improperly. Similarly, state-level requirements vary, often involving compliance with state privacy laws and specific administrative forms overseen by state data management offices.

Remember, these data points belong to the people—they trust us with their data, and we remain accountable to them.

Challenge Yourself:

• Do you understand how your data is collected and the rules that govern it?
• Are you managing data responsibly throughout its life-cycle?
• How effectively are you transforming your data into actionable insights?

Developing data literacy is not just beneficial, it IS essential. Empower yourself and your organization by taking charge of your data literacy journey today.