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pwc.

com/us/dsa-skills

Investing in America’s
data science and
analytics talent
The case for action

April 2017
Increasingly US jobs require data
science and analytics skills. Can
we meet the demand? The current
shortage of skills in the national job
pool demonstrates that business-
as-usual strategies won’t satisfy the
growing need. If we are to unlock
the promise and potential of data
and all the technologies that depend
on it, employers and educators will
have to transform.
This joint report from the Business-
Higher Education Forum and PwC
looks at eight actions for change to
put the supply of skills in balance
with the demand.
Eight actions for change
Responding to the supply-demand
challenge
1 Hire for skills, not only diplomas
Clarify demand with signals that motivate educators and
job seekers

2 Be bold with investment


Invest in market-driven programs that link learning with work

What business needs to change


3 Know the roles
Structure your people plan for the digital economy

4 Prioritize lifelong learning


Modernize training and development for long-term employability

What higher education needs to change


5 Create hubs, not silos
Use data science to build multidisciplinary strength

6 Champion data literacy for all


Enable all students to become data literate and open more routes to
data science

7 Step up professional ties


Strengthen alignment with societies that drive professional conduct

8 Design for inclusion


Expand the pathways that lead to a diverse analytics workforce
The challenge is ours
The world is changing around us—and fast. Business leaders feel more pressure than ever
to innovate and they’re urgently searching for the people who can help their organizations
adapt with agility and speed. At the same time, increasing portions of the workforce face skill
obsolescence, reduced earning potential, and workplaces that demand more sophisticated
technology and data analytics skills than ever before.

How can we best prepare students and the broader workforce for the opportunities and
challenges that lie ahead?

Two years ago in our paper, Data Driven, we offered specific curriculum recommendations
for universities to strengthen technical foundations in data analytics and related skills.
Unlocking the value of data requires a diverse, multidisciplinary approach to problem solving,
combining data science and analytical skills with functional and industry expertise, creativity,
and leadership. Our development framework, the PwC Professional, is a holistic approach to
preparing leaders who will shape the future, integrating technical skills with broader business
and global acumen, communication and relationship skills, and whole leadership.

We also know that a key to success in business is a diverse workforce—teams, boards,


organizations, customers, and stakeholders all benefit from diversity. Increasing the pipeline of
minorities and women equipped with expertise in data sciences and technology is an imperative
for business. And, as a society, we have an imperative to expand participation in the economic
benefits of a data-driven, digital economy.

The mission of the Business-Higher Education Forum (BHEF) has never been more important.
We hope this examination of data science and analytics workforce trends provides you with
insights into the existing market, and how businesses and higher education must work together
to enable individuals, our society, and economy to fulfill our full potential, and address the great
challenges of the 21st century.

Michael Fenlon
Chief People Officer, PwC
Join us in creating solutions
Investing in America’s Data Science Talent: The Case for Action provides groundbreaking
data science and analytics (DSA) market intelligence informed by a Burning Glass Technologies
workforce analysis and real-time survey data of business and higher education leaders from
Gallup. The findings of this report document the emergence of the hybrid economy, in which
companies in all sectors have become increasingly digital-intensive organizations.

The hybrid economy generates considerable demand for highly trained data scientists and
an even greater demand for analytics-enabled professionals who possess hybrid skills:
deep knowledge in a particular domain with strong ability in the use of data, analytics, and
visualization tools. Despite this broad demand across all sectors, the US faces a significant
shortfall in the number of data scientists and ‘data-enabled’ professionals. Closing this DSA
talent gap—and enabling organizations to take full advantage of the value of data—will require
significant expansion of strategic partnerships between business and higher education as well as
investments in new talent development strategies.

The Business-Higher Education Forum has catalyzed dozens of such partnerships. As the nation’s
oldest membership organization of Fortune 500 CEOs, college and university presidents, and
other leaders dedicated to the education of a highly skilled future workforce, our members form
strategic partnerships to build new undergraduate pathways; improve alignment between higher
education and the workforce; and produce a diverse, highly skilled talent pool to meet demand in
emerging fields.

As demonstrated by existing BHEF members’ DSA partnerships, strategic partnerships have


the potential to rapidly transform the current workforce into one which meets the DSA talent
demands of employers. They will need to address both new graduates as well as the incumbent
workforce and span the range of DSA expertise needed by businesses, from entry level to expert.

Toward this goal, we partnered with PwC to publish a clear assessment of the current and future
state of DSA workforce demand and higher education’s response as well as recommendations for
narrowing the gap for DSA talent. We hope the following pages will inspire you to take action and
join us in building strategic business-higher education partnerships to develop the DSA talent,
especially the DSA-enabled graduates, that our economy needs.

Brian K. Fitzgerald, Ed.D.


CEO, Business-Higher Education Forum
America’s DSA skills
imperative
The current shortage of job candidates with data The talent shortfall will not only involve data
science and analytics (DSA) skills is likely to scientists, but it also will extend to existing job
expand in coming years with negative implications classifications from the C-suite to frontlines—all of
for economic growth and competitiveness. A poll, which are increasingly enabled by analytics. As with
conducted by Gallup for the Business-Higher the revolution in work brought on by the personal
Education Forum, revealed that by 2021, 69% of computer (PC) 30 years ago, data science and
employers expect candidates with DSA skills to analytics, hand in hand with machine intelligence and
get preference for jobs in their organizations. Yet automation, are creating a new revolution in work.
only 23% of college and university leaders say their
graduates will have those skills.

Figure 1: Data science and analytics skills, by 2021


The supply-demand challenge

Student supply Employer demand

of employers say they will prefer job

23% 69%
of educators say all graduates will
candidates with these skills over
have data science and analytics skills
ones without
Base: Higher education: 127; Business: 63
Source: Gallup and BHEF, Data Science and Analytics Higher Education Survey (December 2016).

2 | Investing in America’s data science and analytics talent


Market dynamics will eventually close the DSA skills This report details eight opportunities that educators
gap, but can US employers afford to wait? Like the PC and employers can pursue to bridge this disconnect.
revolution, businesses whose workforces do not have the There is a challenge ahead, but we are convinced
skills necessary to wield data science and analytics will that by working in tandem, educators and employers
become also-rans in the race to capture the opportunities can close the DSA skills gap and ensure the future
and value they offer. competitiveness of American companies and workers.
To help support the competitiveness of US companies,
PwC and the Business-Higher Education Forum studied The term analytics refers to the synthesis of
the fast-growing demand for DSA skills. With the help knowledge from information. It’s one of the
of a Burning Glass Technologies workforce analysis, we steps in the data life cycle: collection of raw
examined current demand, and we commissioned two data, preparation of information, analytics,
Gallup surveys to understand the future demand. visualization, and access. Data science is the
We found a fundamental disconnect. Employers will extraction of actionable knowledge directly from
need data-driven, multidisciplinary teams to tackle data through either a process of discovery, or
their biggest problems and grasp their most promising hypothesis formulation and hypothesis testing.
opportunities. But this runs counter to an educational
culture where both faculty and students devote little Source: National Institute of Standards and Technology.
time outside of their own specialties. Employers, too,
are contributing to the disconnect. Because they do
not yet fully understand the nature of DSA skills, they
are not reshaping their people strategies to support the
acquisition, development, and retention of people with
these skills. Demand for data science
and analytics skills?
New job postings to
reach 2.72M in 2020.

PwC and BHEF | 3


What does the jobs landscape look like today?

Analytics-enabled jobs
Who are they?
Data-driven decision makers Functional analysts
Leverage data to inform strategic and Utilize data and analytical models to inform
operational decisions domain-specific functions and business

67 % decisions
Common job titles
Chief Executive Officer Common job titles
Chief Data Officer Actuary
Chief Information Officer Business/Management analyst
Director of IT Compensation/Benefits analyst
Financial manager Financial analyst
Human resources manager Geographer/GIS specialist
Marketing manager HRIS analyst
Operations analyst
Avg. advertised salary: $91,467 Researcher
Total job postings: 812,099
Avg. advertised salary: $69,162
Total job postings: 770,441
2.35M
postings
in 2015

Data science jobs


Who are they?
Data engineers Data analysts Data scientists

23 % Design, build, and maintain Leverage data analysis and Create sophisticated
an organization’s data and modeling techniques to analytical models used to
analytical infrastructure solve problems and glean build new data sets and
insight across functional derive new insights from
Common job titles domains data
Business intelligence
architect Common job titles Common job titles
Computer systems engineer Data mining analyst Biostatistician
Data warehousing specialist Business intelligence analyst Data engineer
Data administrator Data scientist
Database architect Avg. advertised salary: $69,949 Financial quantitative
Systems analyst Total job postings: 124,325 analyst
Statistician
Avg. advertised salary: $78,553
Total job postings: 558,326 Avg. advertised salary: $69,949
Total job postings: 48,347

Note: 2.35 million US job postings from 2015. Actual salaries can be higher than what’s advertised. We’re showing just a
small set of skills that get a premium.
Source: PwC analysis based on Burning Glass Technologies data, January 2017.
4 | Investing in America’s data science and analytics talent
By the numbers
Today’s demand for data science and analytics skills

The market analysis calls for annual job openings to


Skills that get a premium rise steadily to 2.72 million postings for data science
Data-driven decision makers and analytics roles in 2020. In 2015, there were more
Business intelligence Ÿ Business solutions Ÿ job postings asking for DSA skills than the total number
Cloud solutions Ÿ Data warehousing Ÿ Java Ÿ of postings combined that asked for registered nurses
Product development Ÿ Product management Ÿ and truck drivers, two of the largest hiring occupations
Software development principles in the US.1
Functional analysts The demand for DSA skills is growing in all
Business development Ÿ Business intelligence industries. Currently, the highest number of openings
Ÿ Business process analysis Ÿ Data mining Ÿ are in three sectors: finance and insurance, information
Microsoft development tools Ÿ Risk management technology, and professional, scientific, and technical
Ÿ Software development principles Ÿ Systems
services.
design and implementation
It’s a mix of technical and social skills. These jobs
are higher paying, but they also require higher levels of
preparation and above-average social skills, analytical
skills, or both.2

The available pool lacks diversity. DSA coursework


attracts women and underrepresented minorities
only marginally better than other STEM (science,
technology, engineering, and mathematics) courses.
STEM employment data show African Americans and
Skills that get a premium Hispanics are consistently underrepresented (6% and
7% in STEM employment, respectively). Moreover, men
Data engineers consistently outnumber women by three to one.3
Big data Ÿ Cloud solutions Ÿ Data storage and
protection Ÿ Data warehousing Ÿ Scripting Business and higher education aren’t on the same
languages Ÿ Operating systems Ÿ Optimization � page. To build a pipeline of talent, business and higher
SQL and NoSQL education need better ways of signaling for the skills of
the future. Eighty three percent of college and university
Data analysts
Big data Ÿ Data modeling Ÿ Data mining Ÿ Data
presidents and provosts say a common skills framework
visualization Ÿ Data warehousing Ÿ Extraction, would help them prepare students with the data science
transformation, and loading (ETL) Ÿ Operating and analytics skills that they need in their jobs.4
systems Ÿ Optimization Ÿ Scripting languages
Ÿ Software development principles Ÿ Statistical State and private funding sources are untapped.
software Most data science programs in higher education are
university funded, small, and newly minted. In our
Data scientists and advanced analysts survey only 30% of university presidents and provosts
Data modeling Ÿ Data mining Ÿ Data visualization say state funds support their programs in a significant
Ÿ Extraction, transformation, and loading (ETL) way; 2% say private funding is a main source of support.
Ÿ Machine learning Ÿ Mathematical modeling Ÿ
Optimization Ÿ Scripting languages Ÿ Software
development principles

1
Burning Glass Technologies (January 2017). Job post estimates include actual job growth, job replacements, and churn.
2
Pew Research Center, “Jobs requiring preparation, social skills or both expected to grow most” (October 2016).
3
US Census Bureau, American Community Survey (September 2013).
4
BHEF and Gallup, Data Science and Analytics Higher Education and Business Surveys (December 2016).

PwC and BHEF | 5


Responding to the
supply-demand challenge
Digital infrastructure is being built out Figure 2: The demand is for business people with analytics
in public and private spaces across the skills, not just data scientists
US. With it, our capacity to generate
and transmit data from and across Of 2.35 million job postings in the US.
devices, entities, systems, and sensor Analytics-enabled jobs Data science jobs
networks (embedded in the Internet of
Data-driven Functional Data Data Data scientists
Things) is growing exponentially. decision analysts engineers analysts and advanced
makers analysts
Capacity, however, is only one of the
essential enablers of digitization. Finance and
Capability is essential, too, and that Insurance
resides in the skills of people.
The market for DSA skills is hot, but it’s 26% 51% 13% 5% 2%
full of mismatches. The time-honored
practice of treating degrees as proxies Healthcare
and Social
for skill sets doesn’t work with DSA. Assistance
There is a growing number of DSA
degrees and credentials—since 2010, 32% 44% 15% 5% 2%
303 new accredited DSA programs
were launched in the US, a 52%
Information
increase overall.5 But most of them
have not been around long enough for
employers to get a clear-eyed view of 43% 23% 26% 4% 2%
the viability of the job candidates they
produce.
Manufacturing
There is a far deeper pool of STEM
talent, but here, too, it’s often unclear
45% 25% 23% 4% 2%
how well prepared these job candidates
are to use data science and analytics in Professional,
business pursuits. Meanwhile, business Scientific,
and Technical
schools have very few programs that Services
include DSA coursework. 30% 29% 31% 6% 2%
It is left to hiring managers and
recruiters to determine how
Retail Trade
candidates meet skill requirements
in this changing environment. To
do that they need two things: 1) a 46% 35% 13% 4% 2%
common nomenclature to trade in Notes: Job category of analytics managers not shown. Totals may not equal 100%.
DSA competencies and skills; and 2) a Source: PwC analysis based on Burning Glass Technologies data, January 2017.
closer, more collaborative relationship Number of postings: Finance and Insurance (535,683); Healthcare and Social
with higher education aimed at Assistance (100,000); Information (690,833); Manufacturing (237,484); Professional,
Scientific, and Technical Services (511,947); Retail Trade (101,711).
creating programs that will provide job
candidates with the skills they need.

5
Tableau, The State of Data Education 2016 (November 2016).
6 | Investing in America’s data science and analytics talent
1. Clarify demand with signals that motivate foundational data science and analytics skills every
educators and job seekers graduate walking out of our colleges and universities
should have. It’s a vision for an ‘enabled’ graduate who
Consider a CEO who runs a non-profit organization
has developed the skills that employers will value now
working on microfinance. He can draw insights from
and into the future. Colleges and universities can use
unstructured social data and geospatial data like
the framework to guide curriculum choices including
GPS data to figure out how to serve vastly different
coursework for data literacy, communication of data, and
communities. He needs people who have foundational
how students can link data to business value.8
skills in computer science, math, and statistics, but
also specific knowledge about each community so that Skills frameworks for the data science profession.
patterns make sense in their right context. The final piece is being able to see into data science
and analytics as a profession, so that workers see the
Consider another CEO, this time of a biomedical company.
opportunities in front of them and know how their
She has access to massive amounts of neurological data
chosen educational paths can lead to their life’s work.
from patients and thinks that mining this data could
The European Union’s EDISON project has created a
bring changes to how Alzheimer’s is detected and treated.
framework that links skills to data science professions to
In this case, she needs workers with many of the same
help with that.9 The process to get there uses continual
foundational data science skills, but who also know about
mining of data from job postings, college-level course
working within the health system and many other social
offerings, and insights from business leaders.
and economic factors that contribute to patient care.
In the area of data analytics and machine learning,
To build a pipeline of talent that can tackle these and a
EDISON researchers have identified skills common to
broad array of problems in different industries, the people
data science occupations across broad skill groups:
solving them need educators who can stage learning,
helping students stack skills one on top of the next. 1. Applied domain skills (research or business)
Most educators want this; 83% say a common skills 2. Data analytics and machine learning
framework would help them prepare students with the
3. Data management and curation
data science and analytics skills that they need in their
jobs.6 That’s why there’s an organic movement to define 4. Data science engineering
and shape what students should know to prepare for 5. Scientific or research methods
careers that use DSA. This movement has two parts:
6. Personal and interpersonal communication skills
Skills frameworks for educators. The K–12 computer
science framework helps educators design K–12 education Employers shouldn’t expect to find all of the above skills
programs that include data and analytics.7 It’s based on in one individual. Rather, they should use these skill
a multistakeholder view of the concepts students should groups as a guide to forming teams whose members
know and what they should be able to do with those skills. collectively have a full skill set.
It’s a huge step toward helping K–12 educators know
what skills to focus on and how to advocate for student
development throughout elementary, middle, and high Eighty three percent of university presidents
school. and provosts say a common skills framework
At the undergraduate level, the Business-Higher would help them prepare students with the data
Education Forum has laid out a profile for the science and analytics skills that they need in
their jobs.

6
BHEF and Gallup, Data Science and Analytics Higher Education Survey (December 2016).
7
The K–12 Computer Science Framework at k12cs.org.
8
BHEF, Competency Map for the Data Science and Analytics-Enabled Graduate (November 2016).
9
EDISON Data Science Framework (October 2016).

PwC and BHEF | 7


Figure 3: Similar skills, different job markets
Analytics-enabled jobs, such as marketing managers and functional analysts, require some of the
same foundational skills as data scientists, but they apply the skills in different ways.

Analytics-enabled jobs Data science jobs

Data analysis
Codify, manipulate, and analyze data for use in functional or
business units.
Identify and develop methodologically sound and reproducible
approaches for analyzing data sets that are often large and/or messy.

Decision-making
Drawing from various information sources, analyze, visualize, and
communicate insights regarding what has happened.
Create models and software that predict what is going to happen or
prescribe what should happen.

Problem-framing
Frame industry problems as analytical problems and use statistical
analysis to solve them.
Create the data sets and analytical tools necessary to solve industry
problems and/or innovate.
Source: PwC and BHEF.

“The notion of what skills should be taught can vary widely. Within the college of engineering
and the college of medicine, data science means different things. Finding a common thread
can be a challenge.”

- Raghu Machiraju
Faculty director and co-lead of the Translational Data Analytics Program at The Ohio State University

8 | Investing in America’s data science and analytics talent


2. Invest in market-driven programs that link Many early master’s degree programs have been writing
learning with work the formula for how to design an experience that reflects
employer demand, making it easier for employers to
Consider that most data science programs in higher
back them or invest in starting something new. Still, few
education are university funded, small, newly minted and
colleges and universities say private funding is a primary
at the master’s degree level. Research labs and institutes
source of funding for DSA coursework (see Figure 4).
are the most likely recipients of private funding, but the
funding system often does not help build educational
capacity throughout undergraduate programs.

Figure 4: The private sector is a largely untapped resource for DSA program funding
Where is your university primarily receiving funding for data science and analytics programs
offered to students at your institution?

University
funded
49%

State
government
30%

Other 10%
Federal
government 9%

Private
sector
2%
Not receiving
funding
1%
Base: 127 College and University presidents, provosts, program chairs, and deans.
Source: Gallup and BHEF, Data Science and Analytics Higher Education Survey (December 2016).

PwC and BHEF | 9


Here’s what employers can look for when investing or urban neighborhoods, accelerate drug discovery to
supporting a market-driven program. These programs fight disease, and realize autonomous systems for
should be: transportation and agriculture.12
• Applied. The most effective programs apply data • Collaborative. Educators should give employers an
science to real-world problems. The Advanced advisory role in curriculum development to ensure its
Institute for Analytics at North Carolina State relevance to industry. The Gallup poll revealed that
University (NC State) accepts proposals from industry 81% of higher education institutions that offer DSA
for a multidisciplinary, eight-month practicum. coursework consult with industry during program
To date, the Institute has helped more than 100 development.13
companies tackle business problems.10 • Diverse and non-exclusive. For employers, it’s good
• Experience-building. Employers want candidates to fight the temptation of exclusive partnerships.
with experience. Northeastern University’s Master of Companies should partner with multiple institutions
Data Science program offers students up to 12 months to gain access to a diverse candidate base that will
of pre-graduation work experience through co-ops bring a wide range of backgrounds and experiences
and internships.11 to work.
• Aligned with the mission and academic reputation For educators, the creation of market-driven
of the institution. Educator-employer partnerships programs also means locating demand. Burning Glass
work best when the employer is aligned with the Technologies’ jobs assessment used natural language
institutional mission and brand. Since its inception processing to reveal where DSA job density is highest and
in 2014, The Ohio State University’s Translational where the most DSA job postings appear (see Figure 5).
Data Analytics program has partnered with the By monitoring demand at this level, educators can make
private sector on grants and academics that fit with more informed funding decisions, as well as pinpoint
the institution’s research to solve pressing problems. areas where greater engagement with employers could
Some of their efforts are directed at using data science have a significant impact on their efforts.
and analytics to reduce infant mortality in indigent

“We’ve recently launched a master’s degree in computer science with a focus


on data science with the University of Illinois. It’s for potential data scientists
who are unable to take a traditional education path by reimagining graduate-
level education as a ‘stackable’ degree. It’s also being offered at a fraction of
the cost of a traditional on-campus master’s degree.”

- Rick Levin, CEO, Coursera

10
North Carolina State University, Institute for Advanced Analytics, Practicum Sponsorship (accessed February 2017).
11
www.northeastern.edu (accessed March 2017).
12
The Ohio State University, Translational Data and Analytics 2016 Status Report (accessed February 2017).
13
BHEF and Gallup, Data Science and Analytics Higher Education Survey (December 2016).
10 | Investing in America’s data science and analytics talent
Figure 5: Where are markets booming for data science and analytics talent?
By monitoring demand at this level, educators can pinpoint areas where greater engagement with
Where arecould
employers markets
have abooming for data science and analytics talent?
significant impact.

New York-Newark-Jersey City


256,332

Chicago-Naperville-Elgin
118,694
120
Wash-Arlington-Alexandria
LA-Long Beach-Anaheim 119,298
114,754 San Fran-Oakland-Hayward
118,858
100

Low job density/ High job density/


More postings More postings
Postings 2015 (In thousands)

80 Dallas-Fort Worth-Arlington
78,959 Boston-Cambridge-Nashua
Atlanta-Sandy Springs-Roswell 75,533
65,846
Philadelphia-Camden-Wilmington
60 Seattle-Tacoma
58,151
54,984

San Jose-Sunnyvale-Santa Clara


56,043

40
Charlotte-Concord
37,168
Low job density/ High job density/
Fewer postings Fewer postings
20 Trenton
11,967

Bridgeport-Stamford-Norwalk
15,017

0 1 2 3 4
Density of data science and analytics jobs

Source: PwC analysis based on Burning Glass data, December 2016.


Notes: We show a four-point scale, representing the sum of values for each job category.
Source: PwC analysis based on Burning Glass Technologies data (January 2017).

PwC and BHEF | 11


What business needs
to change
The ever-growing need for DSA skills requires employers An effective people plan must clearly define the skills
to modify their people strategies. Witness Cisco Systems. and competencies for each role in a company, not just
As Cisco pivots from its mature business in switching for data science teams, but for all the roles that are
and routing equipment to address the burgeoning linked to those teams. A comprehensive plan requires
opportunities in the Internet of Things, it is also an assessment of how to deliver people with the right
realigning its people strategy. For instance, Cisco has skills, right knowledge, and right experience to the right
partnered with the University of Washington and NC places—now and in the next three to five years.
State to enroll hundreds of employees in a seven-month If you aren’t sure how to start thinking about your model
data science course. The goal: to foster a pervasive level or the people and skills you’ll need, there are translators
of analytical knowledge across the company.14 who can help you. Lauren Andersen, executive director,
Cisco is one example of how data science and analytics, NYC Tech Talent Pipeline, the city’s technology industry
and associated developments in machine learning and partnership, says employers know the problems that they
automation, will force employers to take a hard look at want to solve, but they often don’t have a very accurate
their workforces. When they do, they will see the need to way of describing the skills they’re looking for. She says,
modify the way they hire, who they hire, and how they “We help you ask: What business problems do people in
organize, develop, and reward people. these roles solve? What competencies do you need that
Many companies have adapted some of their human can’t be easily taught? And what are the right qualifying
resources practices to accommodate workplace filters to finding those things?”
innovations, but often, strategies and systems are Even within dedicated data science teams, there are
essentially unchanged—even as new technologies are a variety of roles. Data engineers make sure data is
changing the nature of work. PwC’s 2017 Digital IQ available and accurate. Data analysts work with business
research study found that strategic investments in digital decision makers to understand what is happening or has
technologies aren’t likely to live up to their potential happened in the data. Data scientists build predictive
unless companies align their people and cultures to their and prescriptive software and models, and they often
digital strategies in more systematic ways.15 work on long-term goals, such as developing corporate
The critical ability to apply DSA skills to both operations DSA capabilities.
and innovations requires employers to take a closer look
at people practices. Strategic investments in digital technologies aren’t
likely to live up to their potential unless companies
3. Structure your people plan for the digital align their people and cultures to their digital
economy strategies in more systematic ways.
As the march of digitization continues forward, new
approaches to recruitment and development will be
needed. These approaches will be defined less by
traditional career tracks and more by the set of DSA
skills needed to build cohesive, multidisciplinary teams
that can deliver business results.

14
Cisco Systems, “Preparing for the Data Science-Driven Era” (January 2016).
12 | Investing in America’s data science and analytics talent
Figure 6: Layering DSA skills enables employers to better visualize roles
Use these skill groups as a guide to forming teams whose members collectively have a
full skill set.
Analytics-enabled jobs Data science jobs

Data scientists
Data-driven Functional Data Data
Skills and advanced
decision makers analysts analysts engineers analysts

Domain knowledge
Research or business

Visualization
The story in the data

Data governance
Including ethics and
security
Engineering
Hardware, software,
storage
Management/Curation
Sourcing, cleaning,
manipulating

Analytical approaches
Level of precision

Machine learning
Teach computers to
recognize patterns

Fundamental Intermediate Advanced


(conceptual literacy) (practical application) (applied)

Source: PwC analysis based on Burning Glass Technologies data.

PwC and BHEF | 13


After employers define DSA roles, they can turn their Because DSA skills and competencies can emerge and
attention to finding the people to fill those roles. Their morph very quickly, employers should also consider new
success in this regard is dependent on the screens they models for bolstering workforce readiness. These can
use when sourcing talent. The best screening reduces the include:
barriers to finding the right people. Sometimes, it achieves • Create mentor-apprentice relationships. PwC uses
this by challenging traditional qualifiers and recognizing a mentor-led model for data science jobs. Candidates
that candidates can have very valuable experiences are hired for foundational skills in computer science,
outside of traditional paths. Employers can improve their math, statistics, complex problem solving, and creativity.
screening in several ways, including: And, they are assessed on how likely they are to take
• Beware unconscious bias. One of the reasons bias initiative with good direction and to flourish in a mentor-
is so insidious is that it is often unrecognized. Now, apprentice relationship. Then, they receive guidance and
software can help. SAP, for example, is applying training on-the-job from mentors. When Siemens USA
machine learning to help companies prevent bias when found that less than 15% of 10,000 applicants had the
screening candidates. Its programs flag words in job skills in computing and mechanical engineering needed
posts that indicate gender or ethnic biases, which, in to pass its job screening, it turned to the time-honored
turn, serve as obstacles to tapping a broader, more practice of apprenticeships. In Charlotte, NC, Siemens
diverse pool of candidates.16 began recruiting seniors from local high schools for a
• Don’t overstate educational requirements; program that combines four years of on-the-job training
do consider alternative credentials. Some jobs with an associate’s degree in mechatronics from nearby
require degrees, but often, employers overestimate Central Piedmont Community College.18
and overstate the need for degrees in their job • Tap into talent exchanges. Up to 35% of the US
postings. An effective talent plan identifies both workforce, including a highly networked base of
primary and secondary job qualifications. It also consultants, is engaged in freelance and contingent
identifies alternative credentials. Many companies work. In response, some companies, including PwC, are
are considering how a liberal arts education teaches vetting and curating an external network of independent
students to approach complex challenges using workers. It is a model that enables employers to be
critical thinking and problem solving, creativity, more agile and innovative in the face of fast-changing
communication, and collaboration, for example. market conditions and skill sets. But to make it work,
These free thinkers embody what business leaders say many employers also will need to alter how they plan for
they will want long after some of the coding and data talent, negotiate compensation, and create loyalty with
analysis tasks we know today are automated. this new type of worker.
• Use contests to spot talent. Increasingly, we see
companies turning to alternative venues for spotting 4. Modernize training and development for
talent, including challenge sites, hackathons, and long-term employability
other types of contests. Allstate finds candidates Recruiting from company ranks for data science and
through challenges via Kaggle, a platform that hosts analytics skills is the best option for most. It’s costly not
data science and machine-learning competitions. The to do this, both in productivity and in keeping up with
insurer provides participants a data set and a problem attrition when skilled workers decide to look for better
to solve. The winners get a foot in the door with jobs. This will mean greater focus on updating skills
Allstate’s hiring team.17 as part of your culture, so that employees can focus on
transferable skills and new skills as jobs change.

16
SAPVoice on “Forbes.com, Using Technology To Move Business Beyond Bias” (September 2016).
17
Allstate, Allstate Claims Severity Challenge on Kaggle (December 2016).
18
Siemens USA, “ICYMI - Wanted: Factory Workers, Degree Required” (February 2017).
14 | Investing in America’s data science and analytics talent
“At Northrop Grumman, the key to developing new capabilities in our workforce is
offering employees the opportunity to build skills in new technology areas, followed by
job rotations and on-the-job development programs to apply and practice these new skills.
Employees are motivated by the opportunity to expand their technical expertise and
recognize the value of the investment that the company makes in their careers.”

- Wes Bush, Chairman, CEO and President of Northrop Grumman Corporation

Training and development are particularly relevant for Companies can create their own MOOCs to put learning
existing roles that are becoming more analytics-enabled. in context, or guide employees to preferred courses. PwC’s
When Gallup surveyed executives, about half of the courses for DSA on the Coursera platform, for example,
respondents said that within the next three years, greater can be taken by anyone. The courses are designed to
data and analytics skills will be required of everyone in provide practical, entry-level skills in data analysis, and
operations, finance and accounting, and marketing and presentation and visualization skills.
sales in their companies.19 Corporate trainers could upskill more people, faster, with
Companies can bring all of the conventional training MOOCs or bootcamps if they had an easier time of sorting
methods to bear on this challenge, including external out which courses individuals should take. Right now
degree and certificate programs, internal coursework, and there’s no way to see how well courses are designed to
on-the-job training. They also can adopt and adapt newer deliver workplace or other competencies. Mapping courses
methods, such as Massive Open Online Courses (MOOCs) to competencies could help employers signal what they
and bootcamps. Both of these training vehicles are well want. First, they could name the competencies that spell
suited for working people who want to advance, but don’t out success for a job. Next, they could give employees a
want or need to go back to school. set of individualized course options that would help them
build these skills.

Figure 7: Options to add competencies and skills


What levels of data science or analytics are needed?

Conceptual literacy Practical application Advanced data science

Degree Certificate or a series Major, minor, concentration, Graduate degree;


or certificate of short courses or master’s degree research fellowship

MOOCs and A short-course series A multicourse series or MOOCs and bootcamps


bootcamp that leads to
bootcamps on data analytics concepts specialization
aimed at STEM professionals

Corporate
Training on how to use data Training tailored to your Rarely delivered by corporate
development to drive decision-making job function trainers
and training

Job rotation,
Option for applying theory Option for hands-on
co-op, or Rarely used to a real-world problem learning
internship

Source: PwC and BHEF.

19
BHEF and Gallup, Data Science and Analytics Higher Education Survey (December 2016).

PwC and BHEF | 15


What higher education
needs to change
DSA is a catalyst for change and innovation within While university-branded MOOCs, bootcamps, and
universities not just because it is creating new professional hackathons help universities meet some of these
disciplines, but also because it is altering so many challenges, DSA skills can be learned outside of the
established disciplines. university setting, so students want compelling reasons to
As such, DSA can be seen as part of a broader set of trends commit to a university program.
that are challenging colleges and universities to: This challenge is making it harder for all but those
• Change curriculums to meet skill needs institutions with existing reputations for excellence in
engineering and computer science to create attractive DSA
• Structure degrees and credentials for individual paths programs. Still, the demand for these skills is expanding
• Provide a high-quality education at a reasonable cost so dramatically that more preparation, not less, is
required for students to qualify for higher-paying jobs (see
• Partner more frequently with employers
Figure 8). All colleges and universities should be providing
• Invest in their reputations for applied research students with foundational DSA skills.

Figure 8: The fastest-growing job areas require both analytical and social skills
US, change in employment skills by skills required, 1980 = 100

108

High maths,
high social skills
104

Low maths,
high social skills
100
High maths,
low social skills

96

Low maths,
low social skills
92

1980 90 2000 06 12

Source: David Deming, “The Growing Importance of Social Skills in the Labor Market,” August 2016.

16 | Investing in America’s data science and analytics talent


5. Use data science to build multidisciplinary The DSA institute concept is evolving in new programs
strength in Europe. The Amsterdam School of Data Science links
over 600 scientific researchers and connects disciplines,
A very large part of the DSA skills story is often missed:
research institutes, and industries together to work on
Competency in DSA includes the ability to thrive in
data science problems. Its students can choose from 270
multidisciplinary teams. The ability to apply data science
different courses from four different regional universities
and analytics in healthcare, for example, means driving
to help them build the specializations they desire.20
outcomes that touch doctors, nurses, patients, and
administrators. To achieve this, educators need to provide The opportunity to apply data science to a real-world
a program that brings industry, health policy, computer problem enables students to develop a host of other much-
science, and data science together through a diverse range needed workplace skills. They engage in critical thinking,
of skills, expertise, and experience. get creative, communicate effectively, and collaborate with
a diverse range of people—all of which develop the ‘social’
And the need for multidisciplinary applied problem
skills that are becoming increasingly important in data
solving is how early data science institutes got their start.
science and analytics.
Columbia University’s Data Science Institute, for example,
got its start based on the need to solve important problems These experiences help develop ‘T-shaped’ individuals,
and grow the local economy in New York City. In response, whose principal competency, plus well-honed social skills,
Columbia structured its institute around multidisciplinary allow them to cross functions and domains. Of course,
education, research, and outreach to industry. Their these are the same skills that employers are searching for
educational program began with a new curriculum in the in job candidates and finding in short supply (see Figure 9).
foundations of data science, designed in part by Professor
Chris Wiggins, who is both a member of the institute
The opportunity to apply data science to a real-world
as well as chief data scientist at The New York Times.
problem enables students to develop a host of other
Foundations of data science forms the training core of the
much-needed workplace skills.
institute, and it develops students who can then branch
out to drive research via the Institute’s applied centers
throughout nine different schools including the schools of
business, journalism, law, engineering, and the Columbia
University Medical Center.

www.schoolofdatascience.amsterdam (accessed March 2017).


20

PwC and BHEF | 17


Figure 9: Skills that are tough to find
Percent of employers who say these skills are problematic to find

97%
95%
Cybersecurity

Data science
and analytics
83%

Critical thinking
and
problem solving 79% 79% 78% 78%
Design/
Global 74%
systems thinking
perspective
Cross-disciplinary
ability
Innovation
and creativity
Cognitive
flexibility

Source: Business Roundtable (2017).

6. Enable all students to become data visualization is a good example of such knowledge: It
literate and open more routes to data fuses art and science, helping students use data to express
science themselves in creative ways. This represents an enormous
opportunity for educators because it is relevant to students
While there are many pockets of DSA excellence in higher in and outside of traditional STEM paths.
education, the broader system doesn’t yet recognize
the growing role of DSA coursework in a broad range of The goal of educators should be the design of a
career paths. The Gallup poll of educators revealed that foundational DSA skills curriculum for all STEM and
less than a quarter (21%) of the university presidents and non-STEM majors that underscores the need for self-
provosts whose schools offer data science and analytics management of skills as technology changes. John Wiley
courses require DSA coursework in all mathematics and and Sons, a global publisher of educational content, is
science majors. In business schools, DSA coursework is developing a basic curriculum to help colleges teach these
required for only 30% of majors.21 concepts across a wide range of learners. Wiley’s program
is based on the idea of the analytics-enabled graduate and
All majors should require some foundational knowledge emphasizes analytics, problem solving, critical thinking,
of analytics and the data science process. Data and professional skills.

21
BHEF and Gallup, Data Science and Analytics Higher Education Survey (December 2016).
18 | Investing in America’s data science and analytics talent
Educators should open more routes to data science jobs, It’s likely that each field will develop its own committees
too. Undergraduate students who want to pursue DSA and standards, but there are benefits to having some
coursework have too few opportunities. Undergraduates common principles. A common language, particularly
in computer science and engineering, for example, are around DSA competencies and skills, can open up
rarely able to layer on specialties in data science through new avenues in higher education for working across
minors or certificates, even though they presumably departments. It can help students understand which paths
would be receptive to such an opportunity. are open to them. For employers, this common language
Drake University is one school that has recognized the can help with hiring, development, and training.
importance of opening DSA paths for undergrads. It Chris Wiggins has a unique perspective on the benefits of
offers students in any undergraduate field of study an spending more time learning about the jobs waiting for
opportunity to enhance their degree with a minor in data graduates. As both professor for Columbia University’s
analytics. Students on this track develop basic DSA skills Data Science Institute and chief data scientist for The New
and proficiencies through six courses in math, statistics, York Times he sees some misunderstanding of needed
and computer science. 22 specializations which industry has developed. “Too often
in academia,” he says, “I’ll hear in one sentence several
7. Strengthen alignment with societies that terms that should be used separately to describe a data
drive professional conduct scientist, a data analyst, or a data engineer. In industry,
these are separate collaborators who do different things.”
How different occupations use data science is set to grow
quickly in the next three years, even as principles for what
this means are not well understood (see Figure 10).
8. Expand the pathways that lead to a diverse
analytical workforce
Today, employers sometimes find employees are missing
an understanding of where and how to source data or When solving complex, non-routine problems, it’s more
how messy it may be. If turnover occurs, employers may effective to have diverse teams. And when it comes to data
have troubles with validating empirical methodologies science and analytics, a diverse pool of job candidates is
and reproducing analysis. This changes the risk profile exactly what employers say they want yet struggle to find
for business and raises the need for good data governance (see Figure 11).
and standards. Today, only 12% of university presidents and provosts
Educators can work closely with professional societies agree that DSA courses attract more underrepresented
and in particular those serving math, engineering, minority students than other STEM courses.23 In computer
humanities, social scientists, computer scientists, as well science and engineering—potentially the most receptive
as specific domains like finance, health, and government. groups to growing DSA skills—few have clear paths
The goals are to champion opportunities to apply data building the skills employers want. If we look to STEM
science in research and course teaching, create bodies of employment as a proxy for what the future could look
knowledge, foundations for accreditation, and support like in data science it’s not encouraging, US Census data
and development for faculty. Longer term, professors will shows African Americans, Hispanics, and women are
want to know the issues companies are facing, including consistently underrepresented (6% are African American
what it means to be practicing, issues related to bias, and 7% Hispanic in STEM employment). Men consistently
data privacy, intellectual property, appropriate use, and outnumber women three to one as computer workers.24
regulatory concerns. Top of mind for all is how DSA is
opening up new career paths and what jobs may emerge.

22
BHEF, “Equipping Liberal Arts Students With Skills in Data Analytics” (2016).
23
BHEF and Gallup, Data Science and Analytics Higher Education Survey (December 2016).
24
US Census Bureau, American Community Survey (September 2013).

PwC and BHEF | 19


Figure 10: Data-savvy managers wanted
Percent of employers who say data science and analytics skills will be ‘required of all
managers’ by 2020

Finance and
accounting managers 59%
Marketing and
sales managers 51%

Executive leaders 49%

Operations managers 48%


Supply chain and
logistics managers 40%
Human resources
managers 30%
Base: 63 US business leaders
Source: BHEF and Gallup, Data Science and Analytics Business Survey (December 2016).

20 | Investing in America’s data science and analytics talent


The lack of diversity in data science is not only an • Teaching foundational DSA skills in a broad
employer problem, but also a national problem. The US number of degrees. Business degrees are the most
economy has much to gain by engaging more of its workers sought after degree by women, so opening paths
in high-demand occupations—and data science, along through minors or certificates can create new avenues
with computer services and engineering, represent fast- into analytics-enabled jobs where few exist today.
growth categories of higher-paying jobs. To get a sense of • Creating engaging introductory courses. To help
what that might mean in macroeconomic terms, consider make computer science courses more attractive,
this: If female employment rates in the US rose to the Harvey Mudd College redesigned an introductory
level of Sweden (the leader among OECD countries), US course requirement to emphasize practical uses for
GDP would grow to $1.8 trillion, almost 10% larger than programming and team-based projects. They switched
it is now. If more 20–24-year-old Americans entered into from the Java programming language to Python, which
education, employment, or training, the US GDP could be more closely mimics the way humans communicate.
higher by $464.2 billion (a 2.5% boost).25 The course is broken into three tracks, including one
Educators can foster greater diversity in data science and for students with no programming background. At the
analytics in a variety of ways. Some of them are as follows: school, 55% of computer science undergraduates are
• Training and support for faculty. The chair of women, compared with 16% nationally.27
Computer and Information Sciences at Spelman • Designing curriculum for practical use. North
College was awarded a $400,000 grant to provide Carolina State’s Institute for Advanced Analytics class
DSA training to faculty members at Spelman and of 2017 is 43% women and the class represents 19
Morehouse colleges. Participating faculty will develop countries of origin. Part of the success for this level
and implement the DSA coursework for undergraduates of recruitment is its reputation for a practical hands-
in an effort to boost DSA awareness among on degree that mirrors the day-to-day work of data
underrepresented minorities.26 scientists.28

Figure 11: How can educators help employers with this challenge?
We struggle to find qualified data scientists who are...

Ethnically
Women
diverse

82% 90%

Source: Business Roundtable (2017).

25
PwC, Women in Work Index and Young Workers Index (October 2016).
26
Spelman College, “Robust 2016 Funding Fuels Spelman’s Rigorous Research, Programs, and Initiatives Focused on STEM” (January 2017).
27
Quartz, “Harvey Mudd College took on gender bias and now more than half its computer-science majors are women” (August 2016).
28
North Carolina State’s Institute for Advanced Analytics, 2017 Student Profile (accessed March 2017).

PwC and BHEF | 21


Conclusion
The current shortage of DSA talent in the national job provide a sound foundation for DSA education and invest
pool demonstrates that business-as-usual strategies won’t in launching educational programs that are aligned with
satisfy this demand. If we are to unlock the promise and evolving needs. Educators will need to create innovative,
potential of data and all the technologies that depend on new programs capable of producing a diverse pool of data-
it, employers and educators will have to act. enabled job candidates. Employers will need to refocus
and reshape their people strategies and systems to recruit,
The ability to use data and analytics is not only changing develop, and retain DSA talent.
jobs, but it is leading us to ask more questions about
established institutions and their legacies. What is the The stakes are high. Employers and educators must equip
responsibility of business to their workers? How much the American workforce with the skills they will need for
should educators teach for workplace skills? How is data a data-driven, digital economy. It is a shared responsibility
shifting the power structures in our organizations? to broaden access to the economic benefits to more
members of our society and solve the challenges of the
While the skills gap is our focus now, we must also 21st century.
recognize the bare fact that workplace skills are in flux
and will remain so. To accelerate the development of With this joint report, we respectfully extend an offer
DSA-savvy workforces, employers and educators will need to help in this effort and an invitation to employers and
to work together to construct skills frameworks that will educators who wish to collaborate.

About the jobs market analysis About the surveys


Burning Glass Technologies, a labor market analytics Both surveys were conducted by Gallup for BHEF. To
firm, structured the data discovery for the US jobs market. qualify, respondents needed to be either knowledgeable
Their task was to build a portrait of the demand for skills about their company’s hiring practices for data science
in data science and analytics. To achieve this, Burning or, in the case of higher education, have a data science
Glass mined over 26.9 million job postings from 2015, the program in place. In both surveys, ‘data science and
latest full year of available data, to identify: analytics skills’ were defined as the skills needed to
discover, interpret, and communicate meaningful
• Key roles in the data science and analytics job patterns in data.
ecosystem
• 300+ analytical skills requested in the labor market For the higher-education survey, Gallup conducted 127
phone interviews from October 31, 2016–March 1, 2017,
• Occupations that commonly require a mix of these with college and university presidents, chancellors,
skills provosts, and deans from public and private, two-year
• A jobs category for each occupation, to determine and four-year, institutions which have data science
the links between types of jobs and education and and analytics programs. The sample is not nationally
skill levels representative of US colleges and universities.
The final data set represents 2.35 million US job postings, For the business survey, Gallup conducted 63 phone
in which employers are seeking candidates with data interviews from October 31, 2016–March 1, 2017, with
science and analytics skills. It does not include hidden business leaders. The sample consisted of a broad range
markets, unposted positions, or gig economy jobs. It does of hiring titles (chief executive officers, chief information
not factor for the automation of routine tasks. A sixth officers, chief technology officers, human resources
jobs category, the analytics manager, is not shown; it officers, and vice-presidents of human resources) and a
represents 1.7% of data science and analytics jobs. cross-section of industries (oil and gas, finance, insurance,
computer systems, manufacturing, information,
biotech, healthcare, retail trade, and transportation and
warehousing companies). The annual revenue threshold
was revenues of $10 million or more. The sample is not
nationally representative of US companies in
these industries.

22 | Investing in America’s data science and analytics talent


Acknowledgements

PwC and the Business-Higher Education Forum would like to thank the following people for their time and generosity in
sharing their ideas and insights for this report.
Sean C. Ahearn Dane Linn
Ph.D. Co-CEO Vice President, Business Roundtable
BigKnowledge LLC
Raghu Machiraju
Lauren Andersen Faculty Director and Co-Lead Translational Data
Executive Director Analytics program, The Ohio State University, Professor
NYC Tech Talent Pipeline of Bioinformatics and Computer Science & Engineering
Wes Bush David Meer
Chairman, CEO and President of Northrop Grumman North American Leader, Advanced Customer Analytics,
Corporation Strategy&
Paul Blase Steven Miller
Global & US Consulting Analytics Leader, PwC Global Leader of Academic Programs, IBM Data &
Analytics
Lydia Cheng
Product Design Manager, John Wiley and Sons David Mongeau
Program Director and Co-Lead, Translational Data
Yuri Demchenko
Analytics program, The Ohio State University
Senior Researcher, System and Networking Engineering
Group, University of Amsterdam Andrew Tein
Vice President, John Wiley and Sons
Dorinda Gallant
Faculty in Residence, Translational Data Analytics Chris H. Wiggins
program, The Ohio State University, Associate Professor Associate Professor of Applied Mathematics at Columbia
of Quantitative Research, Evaluation and Measurement University’s Data Science Institute, and Chief Data
Scientist at The New York Times
Rick Levin
CEO, Coursera

Editorial team:
Cristina Ampil, Managing Director, Integrated Content Leader, PwC
L. Isabel Cárdenas-Navia, Director of Emerging Workforce Programs, Business-Higher Education Forum
Karen Elzey, Vice President, Business-Higher Education Forum
Michael Fenlon, Chief People Officer, PwC
Brian K. Fitzgerald, Chief Executive Officer, Business-Higher Education Forum
Debbie Hughes, Vice President of Higher Education and Workforce, Business-Higher Education Forum

Special thanks to:


William Cudney, US People & Organization Practice, PwC
Dee Hildy, Integrated Content, PwC

PwC and BHEF | 23


pwc.com/us/dsa-skills

To have a conversation about issues related to the data


science and analytics workforce, contact:

Michael Fenlon
Chief People Officer, PwC
(646) 471-1214
[email protected]

Brian Fitzgerald
CEO, Business-Higher Education Forum
(202) 367-1268
[email protected]

Debbie Hughes
Vice President, Higher Education and Workforce
Business-Higher Education Forum
(202) 367-2374
[email protected]

© 2017 PwC and Business-Higher Education Forum. All rights reserved. PwC refers to the US member firm or one of its subsidiaries or affiliates, and may sometimes refer to the PwC
network. Each member firm of the PwC network is a separate legal entity. Please see www.pwc.com/structure for further details.

This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. 297803-2017

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