Why your company needs a Chief Data Officer.
It is time to increase acknowledgement of the importance of a chief data officer.
As companies move towards working data-driven, monetizing data in new and enhanced services and products is essential. Traditionally heavy regulated industries, e.g. financial and health, first focused on bringing their data in control. Their efforts concentrated mainly around data quality management, data privacy, data governance and E2E trusted data lineage. These efforts are often led — or owned — by a Chief Data Officer (CDO).
In this article, we advocate to shift or extend this focus of the chief data officer towards data in control AND data in use.
CDO’s define and communicate the companies vision on data management and data use. Through this vision, the CDO gives direction, guidance, advocates for change and sets priorities for running projects. Most companies CDO’s have to some extent achieved this for data management. The extended focus of Chief Data Officers, which we advocate for in this article, contains standard processes for the design, prototyping, development, productizing and use of data & insights products & services. Furthermore, it is the CDO who defines a standard set of technology to be used to support these processes and create these solutions. Where needed, this is based on the data management foundation as implemented by the CDO in previous years.
The Chief Data Officer ideally combines business expertise, technology background and analytics/BI. Extended by a common commercial sense, understanding of production processes and knowledge of relevant 3rd party partners to cooperate with. Organisations without an ‘extended CDO’ will experience difficulties and potential delays in reaching their data-driven goals — in accordance with new developments in the market. Without strategic guidance and steering, there is an increased risk that departments and units will define their own standard processes, set of technology and data-driven products and services. Making it harder to leverage pre-existing data foundations as well as cross-unit collaboration to enable effective market penetrations. Teams will struggle to escalate and address growing concerns as sufficient C-level representation is missing.
Concluding, companies benefit from a Chief Data Officer with a focus on data in control and data in use. Top-down ownership and alignment of data initiatives, standardisation of processes and data tooling and a clear escalation path for growing concerns are necessary to succeed as a data-driven company.