Except if you live in a cave, you must have noticed that AI and data are now driving the evolution of organizations. Facing this, businesses must adapt faster than ever to stay ahead. But having high-quality data and advanced machine learning models isn’t enough. Success relies on three fundamental pillars: processes and policies, technology, and—most crucially—people.
As Peter Drucker famously put it, “Culture eats strategy for breakfast.” Without a strong data culture, even the best AI initiatives will struggle to deliver real value. And at the heart of that culture? Data literacy: the ability of employees at all levels to understand, interpret, and use data effectively.
Companies that prioritize data literacy don’t just improve decision-making; they build a workforce that’s ready to innovate, adapt, and drive AI-powered transformation. To see this in action, let’s explore the difference between ordinary capabilities and dynamic capabilities, and how organizations can use data literacy to bridge the gap.
Why data literacy is a game-changer
A classic business case that illustrates the power of dynamic capabilities is the tale of Blockbuster vs. Netflix. When Netflix launched in 1998, it started by mimicking Blockbuster’s DVD rental model. But the company quickly pivoted, leveraging consumer data to introduce a subscription-based model. The real game-changer? Netflix used data to predict viewer preferences, optimize recommendations, and eventually revolutionize entertainment with streaming. Meanwhile, Blockbuster stuck to its traditional model and ignored the signs of change, leading to its downfall.
This contrast highlights a fundamental principle: companies that integrate data into their decision-making processes can adapt and thrive, while those that don’t risk becoming obsolete.
Ordinary vs. Dynamic capabilities: what’s the difference?
Every business has ordinary capabilities: its existing resources, from physical assets and operational processes to workforce expertise and technology infrastructure. These capabilities define what a company can do today. But in a fast-changing world, staying competitive requires something more: dynamic capabilities, the ability to sense opportunities, seize them, and transform the business accordingly.
Think of ordinary capabilities as the foundation and dynamic capabilities as the ability to renovate, expand, and innovate based on new challenges and opportunities. And this is where data literacy plays a critical role.
By developing data literacy across all levels of an organization, businesses can turn static resources into adaptable, high-impact assets. Employees who understand data can spot patterns, make informed decisions, and embrace change with confidence. They’re not just reacting to trends; they’re helping shape the company’s future.
How data literacy drives competitiveness
Traditional business strategy often focuses on gaining a competitive edge through unique resources such as proprietary technology or market positioning. But nowadays, leading companies understand that real advantage comes from the ability to make the most of both existing assets and emerging opportunities. That’s where dynamic capabilities come in.
To embed data-driven thinking across an organization, leaders need to focus on two key areas: leveraging what they already have and developing new capabilities.
Making the most of existing resources
Before investing in new tools, businesses should start by optimizing what they already have. Employees with strong data skills can act as internal mentors, sharing knowledge across teams. Existing IT systems, software, and training platforms can support data literacy programs, making learning accessible and practical. Even established operational processes, like financial analysis and performance tracking can be enhanced by embedding data-driven decision-making into everyday workflows.
Developing new capabilities
While maximizing existing resources is a great starting point, true transformation happens when companies invest in building new capabilities. And that doesn’t just mean training employees on new tools. It means fostering a culture of curiosity, adaptability, and strategic thinking.
In AI-driven environments, “soft skills” like problem-solving, storytelling with data, and creative thinking are just as important as technical expertise. Employees must not only interpret data but also understand how to apply it in ways that drive business impact.
Again, the Blockbuster-Netflix story offers a striking example. Blockbuster had extensive resources: stores, brand recognition, and market dominance… but failed to adapt. They viewed their capabilities as fixed, rather than something that could evolve with the digital age. Netflix, on the other hand, continuously refined its use of data to anticipate customer needs, pivot its business model, and drive industry-wide change.
For companies now, fostering data literacy is a direct path to agility and innovation. Employees who can analyze, interpret, and act on data insights are better equipped to tackle challenges, seize opportunities, and steer their organizations toward long-term success.
Conclusion
Data literacy isn’t just a technical skill, it’s a strategic necessity.
Companies that invest in a data-fluent workforce are more resilient, innovative, and competitive. By integrating dynamic capabilities with existing resources, businesses can adapt, evolve, and thrive in an era shaped by AI and rapid technological change.
The bottom line? A strong data culture starts with empowering people.
When employees at all levels are confident in working with data, they don’t just execute strategies, they help shape them. And in a market shaken up by new technologies, that’s what makes the difference between companies that lead and those that lag behind.
Want to train your teams in data?
At CBTW, we specialize in empowering businesses with practical, hands-on data training tailored to all skill levels. Whether your teams are just starting out or looking to refine their expertise, our approach ensures they gain the confidence and knowledge to turn data into actionable insights.
Learn more about our Data Literacy Trainings here.