Shulou(Shulou.com)06/03 Report--

Data, regardless of form, format and type, has rapidly become the most strategic asset of enterprises; data assets have become strategic resources that can form business insights and advantages, and the volume, diversity and complexity of data are also growing exponentially. Like other important corporate assets, data requires an appropriate level of management and governance to ensure that its potential value is understood and realized. For these reasons, a new post of Chief data Officer, CDO, has been created in recent years to help enterprises protect and unlock the full value of data assets.

I. CDO function

Strategic guidance and landing support for enterprise data work, pay attention to the collection, governance and management of data assets, ensure the quality of key data, and effectively manage enterprise-level information assets.

From the enterprise perspective, pay attention to the strategic value and application scenarios of data, break through data barriers, so that data can easily flow across departments and functions, and promote better consumption and utilization of data in the enterprise.

Layout the data ecosystem to adapt and promote the rapid innovation of enterprises in the fields of digital transformation, big data, artificial intelligence, blockchain and automation.

Upgrade the management strategy to meet the requirements of data regulation, data submission, data privacy, security compliance, sharing and interworking under the new situation, and enhance to meet the needs of enterprises in the field of regulation and security.

Obtain the value of the connotation in the data, and actively support the business through data analysis. Use emerging technologies to generate executable data analysis insights and tangible business profits.

1.1 role positioning

II. Data-related roles

Within the enterprise, there are multiple roles related to data. How do you look at these roles, and what is the difference in their positioning? Let's make an analysis.

2.1 CIO-CIO

Build an interconnected technology ecosystem by evaluating and establishing relationships between different departments of the enterprise.

Evaluate and invest in enterprise-level platforms and application licenses, such as visualization tools.

Control the complex multi-source supplier environment, reduce the risk of failure and downtime, and optimize services.

Through close cooperation with other executives at the chief executive level, IT is redefined by embedding scalable technologies into all areas of management and operation.

2.2 Chief data Officer-CDO

Lead the work of data management and data analysis in the organization.

Unlock the value of enterprise data assets by establishing and implementing technologies, tools, and building work patterns and processes.

Use data as a strategic asset to manage and implement data governance, data quality and other controls to maintain the data integrity of the enterprise.

Become a trusted partner for customers and business executives in the areas of marketing, corporate risk management, regulatory compliance and finance.

Cultivate the ability of innovation by using the emerging big data and analytical technology.

2.3 Chief Digital Officer-CDO

Through the use of digital technology to provide in-depth insight into customers, risks, channels and other areas, as well as suggestions on how to improve.

Apply mobile, social media, financial technology, Internet of things and other technologies to innovate business models and migrate traditional processes.

Have a preference for innovation and development, including educating and motivating other stakeholders in the organization.

Be able to drive the journey of digital change in internal and external organizations.

2.4 Chief analyst Officer-CAO

Evaluate the most appropriate operation model and data realization method for the business.

Define and draw an enterprise-wide analytical blueprint across strategies, people, processes, data, and technologies.

Participate in a large number of business changes, transformation and training needed by the enterprise, integrate analysis into the corporate culture, and form an insight-driven organization.

Keep the enterprise at the forefront of data capability development and application, and organize and promote future insight and analysis projects.

III. Value of CDO to the company

A good, forward-looking chief data officer, combined with an organization that understands the potential value of the chief data officer and has a reasonable mandate, can bring maximum value to both parties.

1) strengthen technology and data management

An authorized chief data officer is responsible for the company's strategic information management plan. In this regard, the Chief data Officer helps guide the investment direction of enterprise capability development, eliminate information silos and information redundancy, speed up the identification and repair of data quality problems, and reduce the overall cost of manually collecting data, it can bring substantial financial benefits to the company.

2) reduce enterprise risk

The Chief data Officer puts all data-related activities under the same "umbrella" and cooperates with appropriate control nodes, such as data governance and management, process-oriented data quality management, master data management and metadata management, thus realizing the overall governance of the data. At the same time, its management effectiveness has brought higher data quality, better data consistency, more traceable data operations, and reduced internal control and review costs, which has also played a role in the improvement of regulatory compliance.

3) increase business value

The chief data officer improves productivity and data usage, strengthening and adding value to business operations across the enterprise. The chief data officer realizes data realization and data popularity by allowing business people to use data on their own, and builds insight advantages for the business through rich data analysis tools and models. These efforts will eventually help enterprises innovate their business models, build partnerships with organizations within or across industries, gain insight into customer behavior and the panoramic view involved in customer retention, and improve customer service and sales in all contact channels. help companies understand new business opportunities.

IV. CDO capability requirements

A mature company led by a chief data officer can greatly demonstrate and actively promote the improvement of data management capabilities and provide the insight needed for critical business intelligence. meet the needs of all aspects of business, including finance, risk, marketing, sales, compliance, product development, human resources and so on. The key to this is that the chief data officer needs to have a matching influence in the organization, which in turn must have the necessary business, technical and management skills, as well as experience that others often do not have.

4.1 skills / qualifications

1) Field experience

Comprehensive knowledge of an industry (such as finance, insurance, health care, transportation, energy, etc.), including key business, customer interactions, and the expectations and needs of other internal and external stakeholders.

2) IT background

Demonstrate information management and quantitative analysis skills, including IT infrastructure, various technologies / platforms, ability to negotiate with suppliers, and experience in leading key business systems.

3) quantitative thinking

Ability to establish typical business cases and performance indicators to demonstrate business value, to obtain project funds / resources and the ability to measure business value.

4) Business perspective

Proficient in cross-cutting areas covering risk, finance, and customers to drive business value, a full understanding of the regulatory environment, and the effective use of data to implement compliance and risk management.

5) Project leadership

Understand organizational architecture design, and be able to manage and drive large-scale, cross-functional, multi-level projects, integrate people, technologies, processes and tools to form long-term strategies and quick-win results.

6) Communication skills

Be able to promote data strategy and implementation route in the organization, train multi-level stakeholders in the enterprise on the intrinsic value of enterprise data, and remove inherent cultural resistance as a promoter of enterprise change.

4.2 personal traits

1) enthusiasm

Have the leadership determination to defend data as a strategic business asset that can bring a large number of new revenue opportunities to the enterprise.

2) Insight

The ability to identify new business models, capture opportunities in technology and data development, and avoid potential risks through strategic vision can promote organizational innovation and form a long-term competitive advantage.

3) subversive

Have the confidence to put forward new ideas and controversial topics, and have a confrontational and continuous attitude to promote change.

4) Cooperation

Willing to act as a "bridge builder" and promoter to bridge the isolated islands of each department, build a collaborative mechanism of business and technology, and coordinate the efforts of all parties to promote the formation of measurable business results.

5) Agility

The ability to quickly translate into business value, to be out of touch with frontline business by implementing solutions in a pragmatic way, presenting data value, and avoiding lengthy processes to build a "framework".

VI. CDO faces challenges

1) lack of cognition

It is easy for company management to underestimate the effort and time required to organize data assets and build data application capabilities. In addition, management may not be able to understand the commercial value of the position beyond compliance requirements. As long as there is a chief data officer and limited employee support, the chief data officer can solve the problem on his own. But in practice, the first job of the chief data officer is to develop a development plan and implementation path and persuade others to get the job done together.

2) the driver is not strong

For the departmental data islands that often exist, they will think that enterprise-level data management will bring unnecessary interference at work, while ignoring the potential benefits of such management. Even see it as a threat to your department's processes and resources (including financial and personnel aspects).

3) cost pressure

Creating this position may require a certain number of elite teams, and both the cost and the recruitment pressure will pose some challenges. If the chief data officer lacks adequate budget, staff, or authority, he needs to persuade business units, back offices, and IT departments to provide additional resources; but this also makes it extremely difficult to move forward.

4) the development is unknown

Changes in priorities brought about by the business cycle, as well as executives' focus on short-term, low-cost, high-income business goals, are likely to affect the investment and financial support needed for efficient chief data officers who can provide a long-term competitive advantage.

5) Fast iteration of technology

Manage data with increasing volume and complexity, keep up with accelerating IT innovation, and solve the problems of complex stock systems.

6) it is difficult to trust and coordinate

It is necessary to build a trust relationship with senior executives to pave the way for collaborative work. In particular, it is necessary to match the planning of CIO and CTO to ensure that the technical route is in line with the overall development vision and has appropriate priorities.

How to give full play to the value of CDO

1) make CDO a real executive

Make the chief data officer a true executive at the chief executive level. Although the chief data officer holds the title of president, it is often too low in the internal hierarchy of the president to have a substantial impact. Some companies put it under the reporting level of the chief information officer or chief technology officer; in others, the chief data officer is on the other side of the business, under the chief financial officer-CFO, or the chief risk officer-CRO, or the chief marketing officer-CMO, because data is understood as the "control" of the business, not the IT.

An industry-leading approach may prefer the chief data officer to report directly to the chief operating officer, COO, to ensure that the chief data officer remains neutral between business and technology. But in fact, there is no single standard answer. Because the position of the chief data officer depends on the size, complexity, maturity, and internal or external considerations of the organization.

In fact, the chief data officer needs a place where he can exert the greatest influence, taking into account the data availability, integrity, quality, and reliability of data consumers within the enterprise. As an ongoing role, the Chief data Officer will continue to enhance reporting on CEO, CFO, and COO, passing on data is an important and priority business priority, not just an IT job.

2) regard data management as a strategic initiative

Send a top-down signal that efficient, enterprise-level data management is an imperative strategic move. Regular executive support will send a clear signal to a wide range of employees in the organization that the chief data officer has the responsibility and the necessary recognition to manage, innovate and assist in a clear direction of the business, thereby unlocking the value of its information assets.

3) clear work boundaries

Prepare in advance and draw a clear boundary of work in advance. It is necessary to consolidate the positive relationship between the chief digital officer and the chief technology officer-CTO and the chief information officer-CIO. Because the company's business lines in the traditional sense of the lack of data-related agenda resources or leadership, and technical experts have compiled a data dictionary, the application of analysis technology and so on. Conflicts arise when the chief data officer is gradually taken on by these responsibilities. With the guidance of CEO and the board of directors, these positions can work together to tap business value from the organization's technology and data resources.

VIII. Development Direction of CDO

The role of CDO has not been around for a long time, but it has gone through several stages. In the future, it is speculated that this role will change its terms of reference and management dimensions over time, but one thing seems certain: the Chief data Officer, as companies increasingly realize that data is their potential DNA, continues to become an important and challenging role, and will explore the value of data assets to create new profit growth points for the enterprise and enhance the returns of stakeholders.

The first stage

Typical is data governance, focusing on supervision and practice of data management, including metadata, data governance, data management, data quality and so on. The upper layer is based on the application of data warehouse and typical report function.

The second stage

Assume more responsibility for data analysis, in addition to delivering and managing data, but also through the use of data analysis to gain business value. In addition, focus on innovative ideas for using emerging technologies to solve data and analytical challenges.

The third stage

Develop enterprise data into true corporate assets, emphasizing strategic business growth, cost, risk and compliance. Data awareness, analysis-driven, the establishment of "insight-driven organization".

Author: Han Feng

The first release is on the author's personal official name "Han Feng Channel".

Source: Yixin Institute of Technology

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