Digital transformation is big business. Research firm Gartner predicts that digital business will represent an average 36% of a business’s overall revenue by 2020.
Small wonder that the Chief Digital Officer is becoming a key executive role within many large companies.
How does the Chief Digital Officer work with the other CDO (the Chief Data Officer)?
What does digital actually mean?
There is no doubt that digital; means different things to different people.
Some of the myriad examples;
- An technology / automation problem – replacing inefficient paper based processes with more efficient electronic processes
- An integration problem – consolidating key data into a unified view that enables enhanced decision making and improved operational efficiency
- An agility problem – creating an infrastructure that is adaptable to changing business or technology advances
- A change problem – where companies seek to change the way that they do business to compete with disruptors or to adapt to new consumer behaviours and expectations
While culture and technology investments are key to digital, most successful digital transformations are dependent on data.
Trends in digital transformation
A key trend in digital is that is is increasingly being driven from the top. The Chief Digital Officer is emerging as a coordinator role directly below the CEO – with in many cases the Chief Data Officer and Chief Information Officer reporting directly to him.
Another key reality – data is the fuel for digital transformation.
Data governance – the discipline driving behaviour around data is a vital enabler for digital. Governance drives the cultural changes needed to take advantage of digital investments and ensures cost effective compliance with the ever increasing regulatory requirements.
Trends that are driving the need for data governance to enable digitalisation include:
- the Cloud
- Artificial intelligence and Machine learning
- the Internet of Things (IoT)
- Data privacy and ethics
Data governance is about creating the collaboration and reporting structures necessary to empower the Chief Digital Officer to work with other business stakeholders, agree priorities, manage risks and, ultimately, delver on the digital strategy.
For more on how we can help you to deliver data governance, and why it is important, download the free whitepaper