Organizations are recognizing the significance of getting an government who supplies oversight accountability and accountability for his or her information belongings, in response to West Monroe knowledgeable.
There is not any denying the significance of information as an organizational asset, and an ongoing research from digital consultancy West Monroe is making the case for hiring chief digital officers.
By 2025, it’s estimated there might be 175 zettabytes within the international datasphere. As organizations are discovering, there may be numerous worth within the information they generate; the trick is having the ability to handle to monetize it.
SEE: IT job and wage information: Highest tech salaries, top-paying cities, and compensation-boosting ideas (TechRepublic Premium)
The proof is within the pudding, stated Doug Laney, innovation fellow at West Monroe. Organizations with chief information officers are 7x extra prone to generate exterior financial worth from their information than these with out one, he stated. Additional, they’re 3x extra prone to generate different types of business worth from exchanging their information externally with enterprise companions and others.
“Any firm that wishes to thrive within the data age or the information financial system wants an government to be accountable and accountable for the enterprise’s information belongings,” stated Laney, who can also be the creator of Infonomics: Methods to Monetize, Handle, and Measure Data as an Asset for Aggressive Benefit. Infonomics is the idea and follow of treating data as an precise company asset.
“CIOs for too lengthy have acted as if their center title is ‘infrastructure,’ not ‘data,'” he added. “They have been closely targeted on the ‘T,’ not the ‘I’ in IT.”
Steady expertise advances require that somebody be accountable for that aspect of the home, Laney added. “I feel it is time to bifurcate the CIO’s position into that of a chief expertise officer and a chief information officer.”
It isn’t a very new idea. There are between 10,000 and 15,000 CDOs in organizations that “need to thrive and never simply survive,” he stated. These organizations acknowledge the significance of getting an government who supplies oversight accountability and accountability for his or her information belongings, Laney stated.
SEE: Large information administration ideas (free PDF) (TechRepublic)
CDOs in monetary companies are tasked with assembly compliance
This jives with one other new research of the position of CDOs inside the monetary companies trade that finds threat information aggregation is their high compliance concern. Some 88% of those organizations are devoting 40% or extra of their whole information follow price range to compliance features, in response to new analysis by Worldwide Enterprise Analysis and InterSystems.
The research discovered that 69% of organizations cited a scarcity of downstream visibility of information consumption as impeding their pursuit of an offensive information administration technique. Additional, 87% of respondents stated they’re implementing strategic information administration initiatives to spice up profitability and enhance buyer outcomes.
Laney’s research finds that many CDOs have robust enterprise acumen however perceive information ideas and architectures and have a excessive diploma of information literacy.
Equally, the WBR and InterSystems research stated that CDOs are leveraging new information administration applied sciences and architectures, similar to information materials, automated governance, machine studying, information lineage, and blockchain to satisfy their myriad enterprise necessities.
How CDOs are perceived
Among the many different findings of Laney’s research are that there are two sorts of CDOs: One which has C-level standing, and the opposite is extra of a strategist or an advisor to the CIO. Organizations with a C-level CDO are 4x extra prone to say they’re utilizing information to remodel the enterprise and 3x extra prone to share information freely (or democratize information) amongst enterprise models, he stated.
“But, these with only a CIO accountable for their information belongings are solely half as prone to have developed to utilizing superior analytics,” Laney famous. “A whole lot of this comes again to ‘You’ll be able to’t handle what you do not measure, and you may’t monetize what you do not handle nicely.’ We discovered that organizations with a C-level CDO are 3-4x extra prone to formally worth their information belongings. All of it begins with understanding what information you’ve gotten and what its worth, significantly its untapped worth, is.”
SEE: Cheat sheet: Information administration (free PDF) (TechRepublic)
What it takes to be a profitable CDO
The common chief information officer has been within the position for two.7 years, 21% of CDOs transfer from one other CDO position, and 32% of CDOs have been promoted internally into the position, he stated.
The profitable ones have the flexibility to assist companies generate new worth from information whereas additionally making certain it’s nicely protected, secured and ruled. “I additionally discover profitable CDOs are very robust at change administration,” Laney stated.
He acknowledged that it’s “very tough” to seek out individuals with each stable enterprise and tech abilities. In Laney’s view, it’s extra vital to search for candidates with good enterprise and information literacy abilities who perceive analytics, quite than give attention to the tech abilities aspect.
There’s additionally promising development. Amongst CDOs who’ve moved into a brand new non-CDO position, 44% advance right into a CEO/President/COO/CFO/CIO position, Laney stated.
The info comes from West Monroe’s ongoing research of the chief information officer position, and the position of information and analytics in organizations, which has surveyed greater than 500 organizations to this point.