Why Your Company Needs a Chief Data Officer
If you’ve been keeping track of the digital transformation, you know it’s been shaking up the C-Suite. CMOs are playing a larger role. New tech like artificial intelligence is pushing its way in. Indeed, as technology continues to play a larger role in the business landscape, it makes sense that it has a larger presence at the executive table. And with all the buzz surrounding big data, it is no surprise the next “chief” to join the digital kingdom is the new and improved Chief Data Officer.
In truth, CDOs have existed for nearly two decades—largely in financial markets. Most other organizations utilized CIOs, who managed information and data, all in one gigantic bag. CIOs managed issues like grabbing data from different silos, churning it to make it useful, and managing security and industry governance standards to ensure it was being used correctly. But as it turns out, in an age when data is being created at record speeds—and only planning to grow—one person just isn’t enough. Data—and the value it creates—deserves a dedicated manager.
I’ve seen reports from Gartner that 25 percent of organizations would have a CDO by 2017—and 90 percent of large companies would have them by 2019. To me, it doesn’t matter how many companies are already hiring CDOs—it matters how many companies still need to. In fact, especially with the rise of data anticipated from the development of the IoT, companies that fail to create value from available data streams will be at huge disadvantage in the competitive marketplace. Research from the IBM Institute for Business Value’s 2015 analytics report found nearly 2/3 of those who had appointed a CDO were outperforming their competitors. That spread will only increase as the digital transformation moves onward.
Not convinced your company should shell out an executive’s salary to serve as a glorified database manager? Think again. Gartner estimates the average organization loses $13.5 million a year in poor data quality. In fact, today’s data managers do much more than organize numbers. They apply meaning—develop strategy—and keep data streams clean and useful for all members of the organization. The following are a few ways CDOs can add value to your business:
The best way to beat someone at their own game is to know more about it than they do. In the business world, that means better understanding your customers, including how they like to communicate, what they like to buy, and how you can satisfy those needs in the most efficient ways.
