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What Is Digital Illiteracy and Why Does It Affect Your Business?

What Is Digital Illiteracy and Why Does It Affect Your Business
Published on May 29, 2023

What Is Digital Illiteracy and Why Does It Affect Your Business?

A lack of digital literacy prevents access to previously untapped markets. You may increase your company's success and reach by promoting a digital culture within it and tailoring your products and services to the needs of online consumers. 

It's the ability to learn and master new technologies, such as software, hardware, networks, and communications systems. The ability to use digital tools for a range of purposes, such as research, problem-solving, communication, enjoyment, and productivity, necessitates familiarity with computers and the internet, familiarity with browsing websites and programmes, and familiarity with both creating and consuming digital content.  

To put it another way, digital literacy is not just knowing how to make good use of technology but also understanding the impact it can have on our daily lives. 

A growing body of evidence points to the importance of digital literacy as a core life skill. The proliferation of electronic devices has made us dependent on them for our daily needs of information, communication, and work.  

Since technology is evolving and becoming more integrated into our lives at an exponential rate, individuals who are digitally literate have a considerable advantage over those who are not. 

What is Digital Illiteracy? 

Digital Illiteracy refers to the lack of knowledge, skills, or comprehension regarding the use of digital tools and technology to complete a task. This illiteracy can prevent individuals from using a computer, smartphone, or other electronic devices to access online information or communicate. 

Digital Illiteracy

It may also entail problems operating software such as web browsers and word processors. Digital illiteracy is the inability to perceive or use digital devices such as smartphones, tablets, laptops, and desktop computers appropriately. 

It is the ability to live, study, and work in a society where communication and information access are increasingly facilitated by digital technologies such as the internet, social media, and mobile devices. 

Impact of Digital Illiteracy on Businesses 

Digital literacy impacts all types of businesses, from small local businesses to multinational corporations, because it influences how well they can leverage contemporary technology to efficiently offer products/services or maintain market competitiveness. 

The newest technology gives businesses both new opportunities and possible pitfalls if employees and customers lack sufficient awareness about them. For instance, digitally savvy customers today expect companies to use innovative web tools for customer service or provide comprehensive online product information. If this condition is not met, companies can quickly lose sales or reputation points due to negative online reviews from dissatisfied customers. 

Moreover, without enough digital literacy, firms may miss out on opportunities such as online marketing campaigns or joint ventures with other organizations due to a lack of understanding of how new technologies function. 

Hence, it is crucial for businesses to ensure that their staff possess a certain level of digital literacy so that they can exploit developing technology for their specific business operations, thus ensuring long-term increases in productivity and profitability. 

The lack of ability to use digital tools effectively can have a negative influence not just on overall growth but also on productivity, efficiency, and the ability to communicate effectively. This is how: 

Productivity 

A person's proficiency with computers, mobile devices, and the internet is hindered by their lack of digital literacy. Workflow, job completion times, and general productivity can all be negatively impacted by a lack of proficiency with email, project management software, and other digital technologies. 

Productivity

Effectiveness 

With the ability to use digital tools effectively, people can save time and effort by streamlining and automating routine procedures and gaining instantaneous access to information. Individuals may be less likely to adopt time-saving products and approaches without digital skills, which can slow down productivity. For instance, inefficient use of search engines or digital libraries might lead to lost hours of work. 

Communication  

Email, instant messaging, and video conferencing are all examples of modern digital communication channels that are essential to productive collaboration in today's globalized society. A lack of digital literacy can make it difficult to do things like write effective emails, learn appropriate online behaviour (known as "netiquette"), use video conferencing software, and collaborate efficiently. Misunderstandings, poor communication, and inefficient teamwork are all possible outcomes. 

Innovation  

For creativity to flourish, though, digital literacy is essential. It gives people the freedom to experiment with cutting-edge tools, adjust to ever-shifting digital environments, and make effective use of digital resources for innovative problem-solving. People's ability to adapt to changing situations, learn new skills, and take advantage of new opportunities all hinge on their level of digital literacy. 

Growth  

Technological progress is crucial to the success of businesses and economies in the modern digital age. Employees' lack of digital literacy can slow down an organization's progress by slowing down the use of cutting-edge technologies and derailing any attempts at digital transformation. A growing skills gap between people who are comfortable with technology and those who aren't can also limit the prospects for advancement in the workplace for the latter group. 

Importance and Benefits of Digital Literacy Training 

Business owners who wish to succeed today must acquire digital literacy skills. Modernization ushers in a plethora of cutting-edge tools for streamlining operations and enticing new customers. Unless there are no other similar businesses in your field, you cannot afford to sit on the sidelines. They can, however, greatly enhance income by making the most of the opportunities presented by contemporary technologies. 

Business Management  

Business Management  

Software and devices exist to simplify computer-based monitoring of corporate procedures and facilitate automation. Any business can benefit from the increased efficiency and decreased operational costs that this provides. In most situations, computers simply can't replace human beings. However, with their assistance, individuals may boost productivity and accomplish more with less work. 

New Customers and Increased Sales 

To win over new consumers and increase their spending, digital literacy is a must. Using today's resources, any company may boost its profile in the eyes of potential customers. Putting your business on Google Maps is one way to attract customers online. Users can locate nearby businesses and plan routes to them with the aid of the map. If you need your shoes repaired, chances are you'll initially look in your immediate area. 

Rapid Learning 

As a result of the internet and other forms of modern technology, business owners can quickly and easily learn new competencies. Learning anything new doesn't require them to put in a lot of time at the library, go to college, or pay for lessons. A pocket-sized tablet is all they need to study from guides and sign up for video classes. If business owners are technically savvy, they can find out how to better their operations without spending a dime.  

Long-term Requirements for Businesses 

If business owners want to attract new customers, organize their operations effectively, and boost their bottom line, they must develop their digital literacy. If you don't grab your share of the market, someone else will. The technological landscape is ever-shifting. The advancement won't halt at any given point. Therefore, business owners widen the gap between their organizations and their more innovative rivals by rejecting the necessity to improve their digital literacy and acquire new skills. 

Long-term Requirements for Businesses 

Negative Effects of Digital Illiteracy 

Lack of access to the devices and hardware necessary for using technology (e.g., missing power cords), lack of access to the internet (e.g., location in rural areas or high monthly costs), and limited understanding of how to configure settings on a device (e.g., Wi-Fi connection settings), or use software applications (e.g., virus protection software), can all contribute to the problem of digital illiteracy. 

It may also involve an inability to safely sign up for services or make purchases without risking personal information (such as a credit card number) or to identify reliable websites (for purposes such as avoiding fake news). 

Individuals and communities cannot move past these obstacles without first addressing the widespread problem of digital illiteracy through training programmes, educational efforts, and awareness campaigns. Individuals can make significant contributions to the development and prosperity of businesses and economies by increasing their proficiency with digital technologies. 

Tips, Tools, and Resources for Improving Digital Literacy 

Motivate 

The first step is to ensure that the adult learner has the requisite motivation to enhance their skills with the resource in question. Describe how they will profit from your ability to maximise their use of the system. Do common activities like finding information or completing tasks become less time-consuming as a result? 

Invest in employee  

The gap between those who have embraced digital literacy abilities and those who have not can be narrowed by providing access to basic computer skills training. Training in anything from web design and coding to the most fundamental office suite programmes can help workers make sense of the impact technology has on their professions. 

Invest in Employee  

Know the current status 

Find out where they stand right now; learn whether they have experience with similar systems and where they could be lacking. A pulse survey or focus group discussions would yield this data. 

Provide help to get them up to speed 

Help them come up to speed by directing them to the appropriate online resources; for example, intelliHR has its own "getting started" online content resources, of which you are currently a part. You can suggest they go there or provide them with links to specific how-to pieces. 

Get peers involved 

Involve other users' peers by letting them observe a skilled user of the technology or resource. Any demonstration that makes the procedure look simple and emphasizes the benefits of effective use is acceptable, whether it is a live demonstration with an experienced user or a video. 

Encourage practice 

Encourage practice by providing early access to the material wherever possible so that students don't have to learn the mechanics of the activity while also trying to complete it. A sandbox or demonstration environment is preferable in some situations. It's a great way to get some practice in without disturbing anyone or damaging anything valuable. 

Business Management 

Set clear expectations 

To recap, the user needs to be inspired to interact, so make sure they know what's expected of them before they dive in. Send the message that they are expected to use the resource to the best of their ability and that doing so is mandatory (and should be seen as such because of the rewards). 

Give real-world examples for practice 

Giving kids the opportunity to practice using technology in ways that mimic its real-world uses is also crucial in fostering digital literacy, whether it's through the creation of their own websites and apps or courteous participation in online debates. 

Motivate people out of their comfort zone 

We should encourage kids to step outside their technological comfort zones whenever feasible if we want them to become creative, well-rounded digital users in the future. Each pupil, of course, will draw their own conclusions. 

Evaluation and feedback 

Regularly testing employees' proficiency with digital tools is essential for identifying knowledge or skill gaps and presenting targeted opportunities for development. This can be done through manager-conducted one-on-one interviews, company-wide surveys, or standardized examinations of technical skills in areas like programming and office software. Feedback is essential for fostering continuing growth and development among staff members regarding the right use of technology in the workplace, regardless of the evaluation method used. 

Also Read - What Is Data Democratization? How is it Accelerating Digital Businesses? 

Evaluation and feedback 

Conclusion 

The phrase "digital literacy" encompasses a wide range of competencies necessary for success in the 21st-century business world. Everyone needs to be able to utilize computers because they are becoming so pervasive in everyday life. A basic understanding of computers does not guarantee trouble-free document creation and printing or efficient internet research.  

You'll require expertise with a variety of programmes and portable devices, as well as the ability to tailor both to your own needs. All business owners need to be up-to-date on the latest technology, as computers and current software tools help optimize many operations and attract more customers. 

Digital literacy is essential for all entrepreneurs who wish to build their enterprises. Modernization ushers in a plethora of cutting-edge tools for streamlining operations and enticing new customers. Unless there are no other similar businesses in your field, you cannot afford to sit on the sidelines. They can, however, greatly enhance income by making the most of the opportunities presented by contemporary technologies. 

Moreover, it may be useful to undertake a training needs analysis to determine which groups or departments as a whole need to improve their digital literacy abilities before setting appropriate objectives and allocating resources for this purpose. 

SGA’s expertise lies across the entire data lifecycle. We work towards making data-driven insights speak through our data analytics services and solutions. At SGA, the data analytics ecosystem is built upon four strong pillars of data and analytics strategy and insights. 


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