Five reasons why today’s CDOs will be the strategic leaders of tomorrow
Despite recognising data’s value and role in improved business performance, many organisations remain ill-equipped to deal with the data they currently have. Gaining access to as much data as possible is an admirable goal, however without people who know how to actually process and make that data actionable, the full potential of data will never be realised. It’s for this reason that Chief Data Officers (CDOs) have become so vital. Peter Jackson, Chief Data and Analytics Officer, Exasol, explains more.
Data is the lifeblood of an organisation, with over three quarters of IT directors worldwide claiming that it’s their most valuable asset. But while it’s clear that businesses recognise the potential of data and the role it can play in improving overall business performance and customer engagement, many aren’t investing enough in deriving true value from it.
Without the right people with the right skills who know how to govern, manage, process, interpret and make data actionable, the full potential of data will never be realised. And this can have a negative impact on financial performance.
It’s for this reason that the Chief Data Officer (CDO) role has become so popular in recent times. They’re quickly establishing themselves as one of the most valuable business leaders and senior executives in an organisation – skilled in both understanding data and how to apply insights to wider business operations.
The rise of the CDO
The first CDO was appointed almost 19 years ago by CapitalOne, largely in response to the passing of the Sarbanes-Oxley Act of 2002, which was put in place following a number of highly publicised financial scandals at the time. At that point, the role was primarily focused on compliance and data governance.
Since then, the CDO remit has expanded significantly. They’re now integral to overall business processes and performance, with Forrester finding CDOs to be present in 89% of companies that have systematically harnessed data to improve differentiation in the market they operate and have invested accordingly to optimise its use.
This exponential business impact and change is due to the level of responsibility and accountability the CDO has. Impactful CDOs lead the strategic direction of the company and understand and leverage data to support, shape and influence that strategy.
As a result, the promise of a CDO is that they can drive the business forward across the board – advancing innovation, operational efficiencies and revenue growth. Doing this relies on a breadth of knowledge and skills and relationships with every department, from HR and marketing to sales and finance.
