The race to drive competitive advantage and improved efficiency through better use of information assets is leading to a sharp rise in the number of chief data officers or chief analytics officers.
"Business leaders are starting to grasp the huge potential of digital business, and demanding a better return on their organisations' information assets and use of analytics," says Mario Faria, research vice president at Gartner. "It's a logical step to create an executive position — the CDO — to handle the many opportunities and responsibilities that arise from industrial-scale collection and harnessing of data."
CDOs will face a number of challenges, to the extent that only 50 per cent will be successful by the end of 2019. One challenge is that the role will be new in most organisations and most new CDOs will be learning on the job. They will have the difficult task of creating an information strategy with relevant metrics that tie the activities of their team to measurable business outcomes.
Successful CDOs are doing a great job of working with the CIO to lead change and overcome resistance.
"With the explosion of datasets everywhere, an important task is determining which information can add business value, drive efficiency or improve risk management," says Faria.
"The CDO's role will raise expectations of better results from an enterprise information management strategy, with stakeholders wanting a clear idea of the exact mechanics of making success a reality."
The confluence of high expectations and limited knowledge around information management by business users can make it difficult for CDOs to get the budget and commitment from the business they need to make their plans a success. "This raises a political aspect to the role — building trust and relationships in the organisation will be important to achieving success.”Read more: Movers and shakers: Damian Swaffield is Terabyte CEO
Many CDOs already report high levels of change resistance, particularly from the IT department, over the control of information assets and their governance. Successful CDOs, however, are doing a great job of working with the CIO to lead change and overcome resistance.
Gartner recommends six ways new CDOs can overcome common challenges:
- Create an enterprise information management strategy based on the organisation's business strategy and predominant value discipline.
- Work tirelessly to build trust with various business stakeholders, especially the CIO.
- Educate senior leaders and peers about the role that data and information play in overallbusiness success.
- Establish baselines on information governance and data monetisation from which progress canbe measured.
- Tie quantifiable information metrics to quantifiable business key performance indicatorsto demonstrate tangible success.
- Adopt formal information asset measures and share them with the organisation.
"It's important to account for the soft skills needed in the CDO role, whether you are applying or hiring for the position," says Faria. "The success of a CDO will to a large extent depend on his or her ability to lead the change as well as gain the enthusiasm, support and resources of business leaders and other key business units."Read more: Global public cloud services market to reach US$204B in 2016: Gartner
Send news tips and comments to firstname.lastname@example.org
Follow Divina Paredes on Twitter: @divinap
Click here to read digital editions of CIO New ZealandThe 2016 CIO100 event: Honouring leadership and innovation
Join the CIO New Zealand group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.