The chief data officer is a rapidly expanding executive position that is popping up at more large organizations. As managing a company’s data becomes more complex and business users need faster access to the data, organizations are either bringing on a new executive or redefining an existing role to incorporate the responsibilities of a CDO.
Ten years ago, the role of the CDO barely existed. But by the end of 2020, Gartner estimates there will be more than 10,000 chief data officers in the world.
As more regulations, such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA), will be pushed through governments globally, compliance is becoming a significant concern for businesses. Organizations are also dealing with an incredible amount of data, so more businesses are hiring CDOs to manage their data and ensure compliance.
Since CDOs are a net new position at a lot of organizations, many of these executives will be breaking into the role as the first-generation. The CDO will have to carve out their place in the Organization and build out their teams, process and strategies brick by brick.
The evolution of the CDO
The first CDOs were born out of financial services regulations and the need for financial institutions to comply with those regulations. The CDO 1.0 was tasked with establishing responsibilities around data and providing transparency on the data processes. The role developed purely as a defensive play for large organizations, but a good defense can’t win the game on its own. Without a strong offense you can’t score points, or in this case, bring profitable products to market. Enter the next version — CDO 2.0.
The thought of the CDO 2.0 was: to be effective, you need to move beyond guarding the castle and instead create opportunities with data to grow the business and drive innovation.
