The evolution demanded of companies today is propelled by the blurring of lines between the physical and digital worlds. With faster internet connections, the adoption of mobile and cloud technologies, as well as the advancement and ubiquity of technology, companies have had to rapidly adapt to a digital, data-driven world. Businesses at the forefront of this transformation – such as Amazon, Google and Salesforce – have challenged traditional business models with their out-of-the box thinking to maximize on the potential and new avenues revealed by digital and data.
Faced with this disruption, CEOs are asking themselves: How do I pivot my organization to put data and digital at the forefront of our future? Who on the executive team will lead the charge? And so, we see the rise of the Chief Data Officer (CDO). Even though the role has existed for almost two decades, it is still largely misunderstood and rapidly evolving.
Let’s dive into the reality of why the CDO role is one of the most important positions in an organization, and how CDOs can prove their worth and lead their organizations to digital and data success.
To handle the disruption from digital and data, it is imperative that organizations don’t simply label digital and data as a technology solution or a problem to be solved.
In certain circumstances, CDOs have been hired simply as “librarians” to build a solid data foundation. These CDOs are tasked with activities such as infrastructure management, data cataloguing, master data management, data integration, data quality, security, and access. Such a narrow view on data and casting it as a sustaining activity, prevents the realization of the grander opportunities arising from the application of data. Leaving the rest of the organization to “figure it out” and identify how the data foundation can be put to use and monetized often leads to the remainder of the transformative steps failing to complete.
Seeing the role of the CDO as a librarian tasked with building a data foundation – i.e. a gatekeeper of data – should only be one aspect of the role. A CDO who will transform the organization through data needs to also be measured on how that data is put to use to drive business outcomes, whether that be operational efficiency, generating new revenue streams, improving productivity or accelerating decision-making with confidence and certainty.
In the early stages of embarking on a data or digital journey, it may have been adequate to hire a CDO with the skills to build a solid data foundation, ensure it is secure and implement select business use cases. However, making a disruptive transformation requires a C-level player who won’t just play defense, but is ready to go on the offense, breaking through cultural and organizational inertia to define a new normal.
A disruptive path of any kind demands a new mindset. Digital and data transformation are no different, requiring a complete overhaul of processes, data and technology systems, customer relationships, employee skillsets, as well as company culture. This disruption requires a CDO be ready to take ownership and lead the charge. But to succeed with change, a CDO must be empowered to oversee and overhaul, as well as the ability to steer executive strategy and investment decisions.
The CDO role has the potential to take this broader leadership role, influencing company strategy, as well as providing key insights to drive, measure and manage strategic decision-making and execution. Moreover, the CDO has the potential to be the CEO’s right hand and guide the company through an evolution. However, without the necessary support and authority, CDOs are met with resistance and lack of attention or buy-in due to a vast range of competing priorities. CDOs must be empowered by the CEO to be the collaborative force throughout the enterprise: the single, unified voice to drive change in the company’s relationship and mindset when it comes to data.
