1Why the Role of Chief Data Officer Is Gaining Influence in Enterprises
There was a time not long ago when the position of Chief Data Officer (CDO) had little importance or influence in the C-suite. But a new study from research firm Gartner finds that CDOs are becoming increasingly important in the corporate hierarchy. And within the next five years, a significant number of enterprises will rely on CDOs to make strategic decisions that have a direct impact on the bottom line. But as CDO budgets and decision-making influence grows, the executives will have to achieve their goes within slowly evolving corporate cultures and work with CEOs that don’t always understand the value of data. Still, Gartner’s research suggests that this is a good time to be CDO. Read on to learn more:
2CDOs Influence Is Increasing in the Corporate Hierarchy
CDOs haven’t always received the respect they deserve, but Gartner’s study suggests that’s changing. For the first time since Gartner surveyed CDOs, the researcher found that more than half of them are now reporting to top business leaders, including CEOs, board members, and COOs. By 2021, 75 percent of organizations will view CDOs as a “mission-critical function,” according to the report.
3CDO Budgets Are Rising
Given the growing importance of CDOs, budgets are also on the rise. The average CDO budget is now $8 million, a 23 percent increase compared to the $6.5 million companies were spending in 2016. Fifteen percent of respondents said they had budgets exceeding $20 million. That’s up from just 7 percent in 2016.
4CDO Staff Is Also Increasing
5CDO Responsibilities Extend Beyond Data Resources
6But they Mainly Focus on Data Strategy, Analytics
7They Serve as Their Company’s Digital Advisor
8CDO’s Need to Track External Technology Trends, Opportunities
9Using Data Analytics for a Competitive Edge Is a High Priority
10CDOs Are a Diverse Group
The CDO position will be the most gender-diverse technology-related C-level position by 2021, according to Gartner. In 2017, 19 percent of CDOs are female, and that figure jumps to 25 percent for companies with worldwide revenue exceeding $1 billion. In contrast, just 13 percent of CIOs are female. Another telling statistic is that 29 percent of CDOs are 40 or younger.
11CDOs Face Challenges in Many Enterprises
Despite the growing importance of CDOs, they’re facing some roadblocks to success. The top issue they face is getting the company to adjust its culture and accept the change that CDOs can bring to bear. That was followed by generally “poor data literacy” in many enterprises and trouble communicating data-based opportunities to non-technical people.