The Value of Hiring a Chief Data Officer
The title “Chief Data Officer” has grown in popularity over the past few years, as more and more businesses seek to harness the power of big data. However, some companies throw data tasks under the responsibility of the CIO or even CEO, adding to that person’s already heavy workload.
What is clear is that companies value data, whether they are using it or not. According to the Economist Intelligence Unit (EIU) report, “The Business of Data,” 59% of businesses said that they consider data and analytics to be “vital” to the running of their organizations. But according to the same report, half feel their organizations have failed to take advantage of opportunities to capitalize on their data.
The majority of large enterprises fear disruption from emerging technology and trends. Technology can be a vital differentiator and disruptor, upending markets and business practices. Cloud computing, digital technology, big data, artificial intelligence, block chain, and automation are just a few of the disruptive forces at work in all markets. Enterprises need to embrace change and disruption to drive more relevant solutions and gain an edge in the market.
All of this points to the need to hire a Chief Data Officer (CDO) to oversee the collection and use of data in the enterprise. A CDO can help a company become more competitive, profitable, and relevant to the buyer.
According to a survey by NewVantage Partners, the majority of firms (55.9%) have appointed a Chief Data Officer. However, 56% of those firms see the role of the CDO as defensive and reactive in scope. While regulatory and compliance have become the focus of the CDO position for many, the real role should be fostering a data culture.
41.4% of firms indicate that the role of the CDO should be to manage and leverage data as an enterprise business asset. Data is an important business asset, but a larger asset adaptable to future change is an innovative and data-driven team. A company that uses data as a focal point for decisions and creative endeavors will have a strong advantage over the competition in the field.
In the EIU report, 60% of the professionals said that data is generating revenue within their organizations, and 83% said it is making existing services and products more profitable.
