Chief Data Officers Are Enabling Digital Transformation: Gartner
As the role of chief data officer (CDO) continues to gain traction within organizations, data and analytics leaders are proving to be a linchpin of digital business transformation, states a Gartner study.
“While the early crop of CDOs was focused on data governance, data quality, and regulatory drivers, today’s CDOs are now also delivering tangible business value, and enabling a data-driven culture,” said Valerie Logan, research director at Gartner. “Aligned with this shift in focus, the survey also showed that for the first time, more than half of CDOs now report directly to a top business leader such as the CEO, COO, CFO, president/owner or board/shareholders. By 2021, the office of the CDO will be seen as a mission-critical function comparable to IT, business operations, HR and finance in 75 percent of large enterprises.”
The survey found that support for the CDO role and business function is rising globally. A majority of survey respondents reported holding the formal title of CDO, revealing a steady increase over 2016 (57 percent in 2017 compared with 50 percent in 2016). Those organizations implementing an Office of the CDO also rose since last year, with 47 percent reporting an Office of the CDO implemented (either formally or informally) in 2017, compared with 23 percent fully implemented in 2016.
“The steady maturation of the office of the CDO underlines the acceptance and broader understanding of the role and recognizes the impact and value CDOs worldwide are providing,” said Michael Moran, research director at Gartner. “The addition of new talent for increasing responsibilities, growing budgets and increasing positive engagement across the C-suite illustrate how central the role of CDO is becoming to more and more organizations.”
Budgets are also on the rise. Respondents to the 2017 survey report an average CDO office budget of $8 million, representing a 23 percent increase from the average of $6.5 million reported in 2016. Fifteen percent of respondents report budgets more than $20 million, contrasting with 7 percent last year. A further indicator of maturity is the size of the office of the CDO organization. Last year’s study reported total full-time employees at an average of 38 (not distinguishing between direct and indirect reporting), while this year reports an average of 54 direct and indirect employees, representing the federated nature of the office of the CDO design.
With more than one-third of respondents saying “increase revenue” is a top three measure of success, the survey findings show a clear bias developing in favor of value creation over risk mitigation as the key measure of success for a CDO.
CDOs are not just focused on data as the title may imply. Their responsibilities span data management, analytics, data science, ethics and digital transformation.
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