Data Utilization in Iraq: An Analysis of the Current Scene

Research Summary

Introduction

Data utilization has become a vital aspect of modern business operations worldwide. Corporations have been using data-driven decision-making strategies to enhance efficiency, productivity, and profitability. The Middle East and North Africa (MENA) region has been keeping pace with global trends and is increasingly becoming a major hub for IT and digital technologies.

Despite this progress, data utilization in Iraq is still in its infancy, and the implementation of a data-centric shift in Iraqi company operations faces significant challenges. However, many emerging startups in Iraq are utilizing data-driven decisions to base their growth, especially in the technology sector.

Our research aims to explore the current data utilization condition in Iraq, examine the employees’ views regarding their companies data usage, investigate issues hindering data utilization, assess the Iraqi data professionals in terms of skills, needs, and tools, and draft measures to be taken to utilize the data more efficiently.

The objectives were attained by implementing the following steps:

● Semi-structured Interviews with Iraqi senior executives and experts in data were

conducted to gain in-depth information about the current data utilization condition in Iraq,

how companies are utilizing data, and assess the availability of skilled Iraqi data

professionals.

● A quantitative survey targeting Iraqi data analysts and employees to examine their

perspectives on data utilization within their organizations, assess their current skills and

tools used, and evaluate the availability of managerial support of their learning journey.

● An exhaustive analysis of the findings in forms of quantitative data analysis of the survey

and thematic qualitative analysis for the interviews was undertaken to provide an all-encompassing picture of data utilization and availability in Iraq.

Current Situation in Iraq

Iraqi Cultural Perceptions of Data

Regarding the Iraqi mindset toward data, expert opinions and survey results indicate that the Iraqi population may not be data-oriented. This was corroborated by the survey, with 85.9% of respondents strongly agreeing or agreeing.

According to one of our informants, the average Iraqi is solely data-driven with regard to his or her own finances. Another informant claimed that the Iraqi populace is emotionally oriented, implying that data and numbers should be presented to them in a manner that corresponds to their worldview.

Data Availability

When asked about the availability of data in Iraq, approximately 80% of respondents agreed that data is scarce. Our key informants verified this, indicating that the primary data sources include first-party customer data, social media and digital marketing, the Central Statistical Organization (CSO), and the Kurdistan Region Statistics Office (KRSO). First-party data and social media may be used by certain companies, especially in the e-commerce and telecommunications sectors, to try and understand consumer behavior, one informant states. However, they may not be using it to its fullest potential.

Another source of data that could be especially useful for companies in the financial sector is the Central Bank of Iraq (CBI); its information is constantly updated and free to access on the CBI’s website. One informant indicated that the CBI is aiming to hold all of its data centers within the confinement of the country to prevent the leakage of sensitive data.

Data Analysts Availability

More than 80% of respondents agreed or strongly agreed that the supply of qualified data analysts is limited. One Informant believed that the demand for data analysts in Iraq was small to nonexistent because data-driven businesses are minimal. Furthermore, there are not many employment opportunities that particularly require a data analyst. A possible reason for this was indicated by one of our informants; building a digital data-driven business in Iraq is expensive. Consequently, their data utilization would be lacking, which reflects the idea that businesses in Iraq may not view data analysis as an essential tool, but rather as an extra asset that gives a competitive edge.

According to an informant, the majority of Iraqis obtain their skills from the educational system. However, given the state of the educational system, it does not teach the necessary skills for occupations such as data analysis and business intelligence, and few Iraqis attempt to cultivate their skills after graduation. Lastly, the few individuals in the data science job market are self-taught; hence, skill acquisition is now dependent on the individual.

Labor Market Skills & Business Needs Compatibility

We asked our respondents whether or not they agree that their data analysis skills are not compatible with their company’s needs. Survey results reveal that 27.9% of respondents believe their data analysis skills are not suitable with their company’s needs, while 29.1% are neutral about the matter. Our informants support this conclusion, as they believe that Iraqi companies that require data analysts and business intelligence personale cannot find those with the necessary skills on the market, given that highly skilled individuals are mostly employed by large foreign companies, in or outside of Iraq.

On the other hand, according to one informant, the very few companies offering data science positions do not fully comprehend what a data analyst is; that is, the position titles do not accurately reflect the duties of the job, as some of these jobs merely require basic data-related skills, such as matching Excel sheets.

Companies’ Needs for Data Utilization

The vast majority of our respondents (87.5%) consider data utilization to be crucial for improving their organizations' decisions. Our informants believe that companies in Iraq began to realize the impact data-centricity has on business. Consequently, data-centric strategies and business models are vital for improving market penetration.

Companies Practices

Awareness of Data Importance

Approximately 78.4% of respondents fully agree that Iraqi companies are unaware of the importance of data. According to one of our informants, this lack of awareness may be due to the unprecedented nature of data utilization in Iraq. According to a second informant, however, the unfamiliarity with data use is beginning to change as Iraqi businesses become more open to the rest of the world and recognize the numerous advantages of utilizing data.

Companies’ Data-Related Practices and Skill Utilization

When it comes to companies’ data-centered practices, we asked employees, in the study’s survey, about the efficacy of data-centered practices in their respective workplace. 39.9% of our respondents consider the data collection procedures of their companies to be somewhat effective, while 29.4% believe they are effective. When asked about data storage efficiency, 43% of respondents found data storage to be somewhat effective, and 31% of them found it to be effective. In terms of data analysis, 35% of respondents viewed it as ineffective, while 24.5% of them viewed it as effective. The results of our survey show that 54.3% of respondents believe that their data analysis skills could be utilized in more productive ways.

Perception about Managements

The Belief in Data Value

60.6% of our respondents believe that managers understand the significance of data. All of our key informants stated that they understand the value of data, which is especially relevant given the growing demand for its application in Iraq.

Perception of Iraqi Upper Management

When it comes to plans to utilize data in the future, 41% of respondents agree that their management has plans to do so, while 36% of them disagree. Similar numbers of respondents

were divided as to whether or not their management has data analysis understanding (41.8% agree, while 31.9% disagree). Based on their responses, we may infer that there is no straightforward indication of whether or not management has data utilization plans or adequate data understanding. However, 44.2% of our respondents concur that management provides opportunities for employees to utilize data in their operations.

Readiness to Make the Leap

Time and Financial Investment

While 15.8% of our respondents were impartial as to whether or not their management was willing to invest time in data analysis, the remaining respondents were roughly split between agreeing that their management was willing to invest time in data analysis (42.5%) and those who disagreed (41.7%). In terms of financial investment in data analysis, only 34.8% believed their management was willing, while the majority disagreed.

Iraqi Data Analysts

Type of Tools Used

Spreadsheet tools, such as Google Sheets and Microsoft Excel, were the most popular among respondents, with 74.1% saying they always use them in their line of work. One informant states that, on a global scale, Excel and SQL are the two essential tools in a data analyst's kit, as they are used by the majority of data analysts.

On the other hand, programming languages and business intelligence (BI) tools were on the opposite end of the spectrum; 27.2% of respondents state that they know how to use programming tools but they are not required in their profession, while 50.6% of them don't know how to use them. BI tools had similar feedback, with 21% of respondents using them sometimes, while 58% of them lacked the knowledge to utilize them.

Our informant indicates that programming languages and BI tools are specialized niche tools required more for data scientists and machine learning positions, two roles that are uncommon in Iraq’s job market. It is difficult to construct a panoramic picture of the duties a data analyst should perform as it relies on their positions and the company's needs.

Landing Data Analysis Job in Iraq

As previously indicated, According to our informants, there is little to no demand for data analysts as the sector is budding and is in need of further growth. This is reflected in our survey, where the majority of respondents (71%) said it is difficult to find positions as a data analyst. However, our informants think that this trend is anticipated to change in the near future, as an increasing number of businesses will require more data analysis abilities in order to extend their market share and compete with large competitors.

Learning Journey

We asked our respondents to rate the benefits of places where they learn data analysis. Good and excellent benefits were gained by 71.4% of our respondents from their workplaces, 60.5% from self-learning, and 61.8% from informal education. On the other hand, formal education provided medium benefit to 25.9% of our respondents, yet about half of them (54.3%) received little to no benefit.

Company Support

Senior Management Support

While 31.1% of our respondents were uncertain as to whether or not their supervisors were willing to invest in new data analysis tools, 44.6% believed it was conceivable. One key informant asserts that it should be a top priority for businesses in Iraq to invest in data analysis as it can produce better assessments and answer their questions with greater efficiency.

Time Allocation to Learn New Skills

More than half of our respondents (56.4%) believe their employers recognize the significance of allocating sufficient time to master new skills. Our informants imply that companies that require their employees to grow and cultivate their skills should provide incentives such as training programs, mentorships, and promotions upon acquiring new skills as a means to encourage employees to expand their expertise.

Senior Level Individual Guidance

Guidance on the job is an important aspect of learning on the job. When asked if senior level individuals at work are available to learn data analysis, 45.3% of our respondents agreed, while 35% disagreed. A possible explanation for the absence of senior level support could be that, according to our informants, only a small number of companies hire data analysts in teams where seniors can mentor new hires; in many instances, data analysts are hired individually.

Conclusion and Recommendations

In today's world, data is a valuable asset that drives corporations, organizations, and governments towards efficiency and productivity. However, in Iraq, the data sector is still in its infancy, with little demand for its analysis, a low supply of data, and a scarcity of skilled personnel.

Based on the research results, the recommendations are divided according to stakeholder type as follows:

Governmental Bodies

● Creating a data repository that collects data from various industries and producing

subreports that could help MSMEs comprehend market dynamics. This could be done in

coordination with private sector companies to provide an all encompassing source for

businesses.

Formal Education Institutions

● Incorporating data science as a stand-alone major in universities to equip the youth with

the skills required for the job market, especially technical skill development in the

fundamental data tools as well as the encouragement of critical thinking and creativity.

Informal Education Institutions

● Raising the awareness around the importance of data utilization through initiatives,

conferences, or business meet-ups.

● Individuals who work in data or create data-centric projects can educate those entering

the labor market on available opportunities, so that they may develop their abilities.

Iraqi Data Analysts

● Those considering a career in data analysis should be prepared for a mental shift away

from reliance on formal education toward fostering a passion for self-tutoring through

available online knowledge.

● Adaptability is essential for a successful career in data analysis. This is due to the fact

that this field is dynamic, and constantly changing as technologies and tools keep

emerging, making it essential to maintain building technical skills and competencies.

Iraqi Organizations

● Emergence of businesses whose mission is to gather and publish data, with a portion of

their data being freely accessible to the public.

● Managers are encouraged to familiarize with the fundamental aspects of utilizing data, to

support enhanced incorporation of data-centricity into their business. This also includes

recognizing business needs and how they can be addressed using data. It would also

aid the selection of the right candidates for the data analysis teams.

● Starting with existing data, it allows a company to employ not only readily available,

untapped data, but also existing skills and tools. This gives immediate benefits as it

paves the way for expanding to cover more complicated sources and types of data.