The role of CDOs: a more strategic approach to data and digital transformation
The role of CDOs: Niels Stenfeldt, CEO of Stibo Systems, and Christian Oertzen, President EMEA & Managing Director Germany of Stibo Systems, discuss how CDOs can develop a more business-orientated mindset to meet changing data expectations – and how master data management (MDM) holds the key.
Demands on Chief Data Officers (CDOs) are growing. Data is now an in-demand commodity. But while most realise its value, a lot of businesses still don’t understand how to use it to get tangible results – be it financial growth, improved engagement or more accurate insight. This is where the role of CDOs enters the story, to deliver ROI on data.
The task to define and find value now falls under the role of CDOs. He or she is required to not only find the right technical data solution, but to take a more strategic role within the business – to seek new business value from data as well as guide digital transformation. It’s a tall demand, and requires a fundamental shift in responsibility away for an area that has traditionally sat firmly with IT.
So, how can data professionals make this shift and start showing ROI on data investments?
Translating something as intangible as data into a physical business opportunity is incredibly difficult. We recommend that you start discussing data from a perspective everyone can understand, by framing it as a business asset.
Make sure the value is identified; understand what drives the most value in the company and then identify what data points isolate that event. Let’s think about retail. If we ask,” where’s the money?” we know it’s with the consumer who goes into the store or website and hopefully becomes a customer. What is it that drives the revenue of a store? Having the right products on the right shelf at the right time. Then packaging it up with the best possible customer experience. Success in this process is a matter of being able to convert a visit to an actual purchase. As a CDO, you must think of the data points needed to improve that conversion.
Communicating an enterprise-wide data vision to your colleagues is, as you know, likely to be fraught with resistance and challenges. To get support for your data projects and drive a data-led culture, you’ll need to learn how to navigate through these obstacles.
Despite the growing enthusiasm for emerging data concepts such as artificial intelligence (AI) and automation, getting the board to buy into and invest in data initiatives continues to be a barrier for many CDOs. There remains a disconnect between the desire to embrace data as a business asset and a willingness to invest the time and resources – not just funds – needed to make it happen.
At a recent event in Amsterdam, we asked an audience of CDOs the question: ”Is board-level buy-in to your data projects improving?” Three quarters admitted the No. 1 challenge for getting projects off the ground was, in fact, getting board-level buy-in.
The key to addressing the education requirement needed to secure board-level buy-in is the way you sell your proposals and initiatives.
It’s not just a case of sharing a grand vision for how data will be used. It needs to clearly state what the outcome will be as a result.
A business using data successfully will have data connected and flowing through every department. If a you can frame the benefits of your initiatives to address the needs and challenges of each department, you will face less resistance.
Some organisations may be inspired by changes they see in other companies, leading them to think, ‘we need to do this as well.
