The Chief Data Officer Role at a Crossroads: What Lies Ahead

Having just attended the 16th Annual Chief Data Officer Information Quality (CDOIQ) Symposium July 19-21 on the campus of the Massachusetts Institute of Technology (MIT) in Cambridge, MA, it is evident now more than ever, that the Chief Data Officer role stands at a crossroads.  

It's worth reflecting on how the CDO role has evolved since the symposium’s inception. This is evidenced in data from NewVantage Partners Data and AI Leadership Executive Survey 2022 and key takeaways from this year's program.  

Here is a summary of some principal takeaways from the 16th Annual MIT CDOIQ Symposium:  

1. The CDO role has moved to the offense

It was not long ago that the core of the CDO role for most incumbents was centered around risk mitigation, regulatory compliance, and operational efficiency. Now, we see CDOs focused more than ever on business expansion activities – revenue generation, business growth, market entry, and innovation – with 64.3% of CDOs now primarily focused on offensive efforts.

2. Analytics has emerged as central to the CDO mandate

The first generations of CDOs were heavily focused on data management issues – data quality, data preparation, and providing data access. In recent years, we have seen a notable shift, where analytics has become part of the CDO mandate, personified by the evolution of the role into the Chief Data & Analytics Officer function for a significant number of organizations. Data analytics and data science were the predominant skill set for CDOs, cited by 44.3% of organizations, in contrast to 29.1% that cited data management or governance as the primary CDO skill.

3. The CDO role is arriving at a next stage of maturity

For the first decade of the MIT CDOIQ Symposium, the CDO role was a new and emerging function for most organizations. There was no blueprint for success. Reporting structures and responsibilities varied from organization to organization.  Expectations were uncertain. Today, the role is firmly established and, though it continues to be nascent and evolving for a majority of companies, the percentage of firms that report that the role is successful and established has increased from 27.9% to 40.1% in just the past three years. Now, we just need to expand the average CDO tenure to longer than 2-2.5 years.

4. Companies increasingly recognize that CDOs must drive transformation and change

Companies continue to struggle to become data-driven, with just 26.5% reporting having achieved this goal. Increasingly companies recognize that becoming data-driven necessitates broad organizational transformation. Change is never easy, but over half of firms – 50.6% – now say that a successful CDO must function as a “change agent,” up from 34.0% just five years ago. To quote Best Buy CDAO Craig Brabec, “Be evangelists!”

5. Data initiatives must deliver business value to justify continued investment

Leading companies have a well-established track record of investing in data initiatives. According to the survey, 97.0% of firms reported investing in data initiatives. Firms have struggled for years, however, to ensure that investments in data initiatives result in measurable business outcomes. Without demonstrated business results, data investments are called into question. Just five years ago, less than half of companies – 48.4% – could point to measurable business outcomes. Today, 92.1% of companies make this claim as more companies can point to tangible business use cases as a starting point for data investments.

6. Becoming data-driven begins and ends with people

Technology is an essential enabler. Today, advances in technology have ensured access to increasingly vast amounts of data, in new forms, and with unprecedented speed. Technology enhances access to quality data, but people analyze the data to make decisions. For an overwhelming number of organizations – 91.9%, people issues and cultural change still represent the principal challenges to becoming data-driven. Putting data into the hands of business leaders, building data literacy, and ensuring trust in data are initiatives that companies must become better at to achieve their goals.

7. CDOs must be in it for the long haul

Change tends to unfold gradually. Every experienced CDO will recognize that becoming data-driven does not happen overnight. Organizations must demonstrate patience, persistence, steadfastness, and resilience. Those organizations that distinguish themselves will understand that being data-driven is not a destination, but an ongoing process that organizations must sustain. It’s a massive cultural change the requires patience.

Reflecting on this year's symposium, Tony Cyriac, Chief Data & Analytics Officer at Charles Schwab, commented, “As a CDAO, I believe strongly in the importance of meeting and learning from the experiences of peers across a variety of industries. I’ve found these discussions particularly meaningful given the notable shift towards discussing business value of data initiatives at companies, as well as the increased focus on data as a product.”

After a decade of maturity, the Chief Data Officer function now stands at a crossroads. When we reconvene next year for the 17th Annual MIT CDOIQ Symposium, will we be revisiting these same issues, or will organizations have made the shift and taken a leap forward? While at a crossroads today, we look ahead for a progression to the next chapter in the journey of the Chief Data Officer and the ongoing quest of organizations to become data-driven.

 About the Author

Randy Bean is the author of “Fail Fast, Learn Faster: Lessons in Data-Driven Leadership in an Age of Disruption, Big Data, and AI.”  He is a contributor to Harvard Business Review, Forbes, MIT Sloan Management Review, The Wall Street Journal, CDO Magazine, and Founder and CEO of NewVantage Partners, a strategic advisory and management consulting firm which he founded in 2001.