Why Education Lags Behind in Data Usage — And How to Catch Up

Mathematician Clive Humby famously said, “Data is the new oil. Like oil, data is valuable, but if unrefined it cannot really be used.” In the modern era, data usage is essential. From finance to healthcare to government to technology, data runs the world. But in education? Not so much. While tech-driven businesses race ahead with real-time analytics and AI-driven decisions, many school districts still rely on spreadsheets and instinct. Why is that? And more importantly, what can be done?

In this article, I’ll unpack the reasons behind education’s data lag, compare it with other sectors, and offer steps forward. 

The Current State of Data Usage in Education

When it comes to data, most schools are operating like it’s still the year 2005. While data is being collected (student grades, attendance records, behavioral incidents, state test scores) the usage of that data is often basic, fragmented, and reactive.

Many educators still rely on static spreadsheets, outdated student information systems (SIS), and compliance-driven dashboards that offer little more than summaries of what already happened. The focus tends to be on reporting rather than analysis. Much of the data collected in schools is used to satisfy external accountability requirements, not to drive day-to-day instructional decisions.

A key issue is that data systems are rarely interoperable. Teachers might use one platform for grades, another for behavior tracking, and yet another for assessments, none of which talk to each other. This fragmentation makes it nearly impossible to build a holistic view of a student’s needs, let alone track trends across classrooms, schools, or districts.

Even when data is accessible, educators often lack the time or training to interpret it effectively. According to a 2023 EdWeek survey, less than 40% of teachers feel confident using data to adjust instruction in real time. As I wrote in a recent article, education preparation programs struggle to teach data literacy due to the decentralized nature of the field and the fact that each school’s data systems look different. This isn’t a failure of the educators; it’s a failure of the system to prioritize data literacy and to provide intuitive, actionable tools.

In short, schools are “data rich and information poor”. Without the right infrastructure and support, data becomes just another burden rather than a lever for transformation.

How Other Sectors Are Winning with Data

Other fields have learned that data is the key to unlocking success. With the rise of new technologies and new levels of computer processing power, the value of data usage has exploded in industries like healthcare, retail, and sports. What unites these industries isn’t just the tech, it’s the mindset. Data isn’t seen as a byproduct; it’s a driver of performance. These sectors invest heavily in user-friendly platforms, cross-functional data teams, and constant professional learning. They make decisions fast, and they make them smart.

What truly sets these sectors apart isn’t just the tools, it’s the culture. In companies with mature data practices:

  • Employees trust data and are trained to use it.
  • Leadership prioritizes measurable impact over intuition.
  • Data infrastructure is treated like any other mission-critical system.

One stark contrast? Speed of change. In the corporate world, data strategies evolve every quarter. In education, a new dashboard or tool can take years to pilot and roll out, by which point, it’s already outdated.

Key Reasons Education Lags Behind

It’s important to note that many of the other industries I’ve been discussing are focused on one thing: profit. This is an essential difference from the education field. The necessity to use data to get ahead of the competition and make more money can be a powerful motivator. But that doesn’t mean there aren’t lessons to be learned.

Money

Budget constraints and funding priorities in education do play a role, though. Public funding for the education system is always strained, and the decisions for where to spend that money often go toward essential needs, a category in which data hasn’t been classified yet, unfortunately. Most districts are still grappling with aging student information systems that do little more than house grades and attendance. Tools that support real-time dashboards, predictive analytics, or integrated student profiles are rare—and when they exist, they’re often cost-prohibitive or limited to pilot programs. Moreover, tech procurement in education is notoriously slow and fragmented, with purchasing decisions sometimes made with little input from teachers or principals.

Siloed Data Systems

Another reason for the lag is the aforementioned interoperability and the siloed data systems that exist in schools. A large, multifaceted dashboard is something that would be a wonderful addition to school districts, but not many have them due to cost, needed manpower, and the knowhow of how to build it. So, because of this, data access is fragmented and the data is not readily available when needed. This fragmentation also leads to redundancy, inefficiency, and missed insights. Teachers must toggle between multiple portals just to piece together a student’s story. Meanwhile, leaders are left making strategic decisions based on partial or outdated data.

Data Literacy

The data literacy of the teachers and administrators also becomes a problem. This is a topic I’ve studied and written on extensively and I know how wide-ranging the issue is (check out my recent article here). Teachers and principals are often expected to interpret dashboards or identify trends without any formal background in analytics or statistical reasoning. This creates a frustrating gap: data is technically accessible, but it’s not actionable. Not only do educators not always understand what they need to do, there is also a culture of resistance to data. The perception that we are treating students like commodities and that we’re turning human interactions into numbers does not always sit well with those in the field.

Privacy

One of the most frequently cited barriers to effective data use in education is the web of policy restrictions and privacy regulations, particularly those related to FERPA (Family Educational Rights and Privacy Act). Designed to protect student privacy, FERPA imposes strict limits on how schools can collect, share, and store student data. While its intent is essential—no one wants sensitive student information falling into the wrong hands—its implementation often results in extreme caution or outright paralysis when it comes to innovation. Districts frequently interpret FERPA conservatively, erring on the side of limiting access even within their own organizations. Teachers may be unable to access useful data beyond their classroom, and cross-functional data sharing (e.g., between special education and academic departments) becomes difficult. Furthermore, fear of a data breach or misstep often outweighs the potential value of using data proactively to support students. As a result, instead of encouraging smarter use of data, policy concerns end up discouraging its use altogether.

Bureaucracies

Also, education systems, particularly public ones, are often mired in slow-moving bureaucracies that resist change by design. Decision-making is layered across school boards, district administrators, state departments, and sometimes even federal guidelines. Even when a promising data tool or platform becomes available, the approval process can take months or years, by which point the tool may be obsolete or lose stakeholder buy-in. This inertia is fueled by a culture of risk aversion: school leaders are often punished more for mistakes than rewarded for innovation. Unlike the private sector, where experimentation and rapid iteration are expected, public education operates under intense scrutiny. One poorly implemented initiative can lead to backlash from parents, unions, or the media. This fosters an environment where it feels safer to maintain the status quo than to explore new approaches, especially when it comes to data systems that may require training, investment, and a rethinking of workflows. In short, the system is set up to avoid failure, not to pursue transformation.

A Roadmap for Education Leaders

If the education sector wants to close the data gap and unlock its full potential, it needs a clear, actionable roadmap. It’s not about chasing the latest edtech trend; it’s about building a foundation where data supports every decision, every day. Here’s how education leaders can start:

1. Make Data a Strategic Priority, Not a Side Project

Too often, data initiatives are buried in IT departments or delegated to a single “data coach.” That won’t cut it. Superintendents, principals, and district leaders must treat data as core infrastructure, just like staffing or curriculum. That means funding it, staffing it, and communicating its importance clearly and consistently across the organization.

2. Invest in Interoperable, User-Friendly Systems

Choose tools that work together, reduce logins, and simplify access for teachers. Prioritize platforms that offer real-time insights, customizable dashboards, and seamless integration with existing systems. Ask vendors tough questions about data portability and usability. And don’t be afraid to phase out platforms that create silos or slow things down.

3. Prioritize Professional Development in Data Literacy

Build time and incentives into the school calendar for educators to learn how to analyze, interpret, and act on data. Go beyond compliance training. Offer practical, job-embedded support that shows how data can solve real classroom challenges. Consider forming cross-functional “data teams” in each school to foster collaboration and shared ownership.

4. Start Small, Scale What Works

You don’t need a district-wide overhaul to start seeing results. Pilot a data dashboard in one middle school. Try predictive analytics in a single department. Track and share early wins. Use feedback to iterate. Quick wins build momentum and trust. Show educators how data can save time and improve outcomes, not just add paperwork.

5. Communicate the Why

One of the biggest obstacles to data adoption is skepticism. Many educators have seen data misused, as a blunt accountability tool rather than a lens for support. Leaders must reframe the narrative, emphasizing that data is about understanding students, improving instruction, and making smarter decisions. Share stories. Celebrate breakthroughs. Keep the human purpose front and center.

6. Address Privacy Proactively, Not Reactively

Privacy concerns will always be part of the conversation, but they don’t have to be the end of it. Partner with legal experts to build policies that protect students while enabling innovation. Be transparent with families. Create clear guidelines for how data is collected, used, and stored, and make those policies easy to understand. Build trust by building clarity.

Conclusion

Education is one of the most impactful sectors in society, yet when it comes to data usage, it’s stuck in second gear. There are real consequences to this. Teachers are often expected to be data analysts, intervention specialists, and instructors without the tools or time to do so effectively. When data systems are clunky or fragmented, teachers spend hours cobbling together information that should be automated. This not only increases workload but also leads to frustration and burnout. It’s a waste of talent and time that could be better spent planning instruction or building relationships with students.

Dan Frederking
Dan Frederking
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