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

Data and analysis promote the continuous transformation and upgrading of various industries. Companies driven by data can rethink their business and achieve significant competitive advantage. Manufacturers that once sold goods can now provide intelligent solutions that turn the relevant data streams into economic benefits. Retailers can design personalized, interactive, omni-directional channel experience to better provide services for consumers. Government agencies can build smart cities and improve the quality of life of the general public. The emergence of new business opportunities has led to the emergence of a new top executive role-Chief data Officer (CDO). As a leader of change, CDO mobilizes all aspects of the enterprise according to the enterprise data strategy, innovates the way data is used, and establishes a culture that is more data-driven.

How can we promote the personalization of Web applications and mobile applications? How can we improve our customers' experience when using our various channels? How does the weather affect store sales? Can unstructured data help us improve our ability to predict risk and fraud? How to use data to reduce operating costs?

Companies around the world are struggling to find answers to similar questions, and time is running out. They must find the answer as soon as possible, take the lead in the competition and lead the market demand. Chief Information officers (CIO), Chief operating officers (COO), and other business leaders basically work alone in this area, each with their own responsibilities in achieving larger corporate goals.

However, many companies find that this piecemeal approach does not create the transformative value expected by big data and the analyst. Because everyone is responsible for data and analysis, there is a lack of overall strategy and unified accountability. As a result, data are usually "asleep", or the role can not be brought into full play. There is still a situation of fragmentation in this regard, with functional departments usually performing analysis, rather than promoting enterprise-wide exploration of new areas and innovation. Decisions are still made based on intuition and experience, not on analytical insights.

Therefore, the Chief data Officer (CDO) arises at the historic moment. According to Gartner's forecast, 25 per cent of the world's largest companies will appoint CDO by 2015. Many white papers on CDO emphasize the importance of data regulation and technology application. However, our interviews with a number of CDO and non-CDO executives show that CDO needs to take on a more mission: to guide companies on how to architecture data, analyze data, and act on it. To do this, CDO must become a leader in change and promote a data-driven approach.

To better understand this evolving and changing role, we conducted in-depth interviews with CEO, CIO, and other executives from companies that are considering or have appointed CDO. In all the interviews, we found the following recurring themes:

Obstacles to the establishment of CDO posts.

The value that the CDO role brings.

-looking forward to the ability of data strategies.

-- to promote real change in enterprises.

-- promoting the transformation of corporate culture.

CDO's expertise in building data-driven businesses.

Participants came from a variety of industries, including consumer electronics, financial services, government, health care and telecommunications.

By sharing their in-depth insights, survey participants put forward valuable suggestions on how to make full use of their data to achieve innovation. Participants discussed why CDO is critical to the transformation of corporate culture and how to create the new position.

What are the obstacles to establishing a CDO position?

Requirements for CDO positions are still in the pipeline, as chief marketing officers (CMO) and even CIO did years ago.

The CDO and non-CDO executives we interviewed highlighted four obstacles they encountered within the company in establishing the position.

Most of the executives interviewed agreed that possessiveness of data ownership was the biggest challenge. As one banking CDO puts it, "people rely on data to make judgments and have a strong emotional attachment to their own data." The idea that work should be done by existing positions and teams (such as by CIO and business units), as well as budgetary pressure, is also hindered within the company. Some respondents conveyed their colleagues' concerns about the uncertainty of the value of CDO and the source of the budget. As one insurance company operations executive puts it, "there is also an idea: what can data managers do that IT can't do?"

Companies that are recruiting for CDO say it is difficult to find candidates with both technical and business skills. CDO can translate the needs and goals of business executives into effective solutions. A successful CDO needs not only to understand the technical aspects of data and analysis, but also to be able to conceive new ways to combine and use data to achieve business goals.

Conceptually, people understand and agree that someone needs to be responsible for the data. but when it comes to their own vital interests, difficulties arise.

-so says a banking COO.

As for the challenges, one telecoms CDO said: "CDO roles need both technical skills and business knowledge, but it's hard to have both. Many people specialize in technology and can become data researchers or data architects. But a successful CDO must possess these technical skills as well as use business skills."

Why do I need CDO?

The most important thing we found was that while many respondents claimed that there were obstacles within the company, they stressed that if CDO does bring great value, then the obstacles must be overcome. They propose three basic capabilities that only CDO has:

Develop overall data and analysis strategies for the enterprise to conceive and guide.

Stimulate change, create greater value, and affect business development through the use of data and analysis.

Change the corporate culture and attach importance to the role of analysis.

"sometimes these things are incoherent. Incoherent things don't give us a competitive advantage. CDO should help companies by forming systems and institutions."

-an insurance CIO said.

CDO has a single responsibility and is responsible for establishing and promoting "data integrity, reusability and protection." Their priority is a "better way" for the enterprise as a whole, which may not be the easiest or quickest way to get the job done, even for specific business units.

Survey participants believe that the risks caused by data management, quality and integrity issues are the "catalyst" for raising the role of CDO to the top management.

Respondents compared CDO to a "band conductor", "football quarterback" or "navigator". CDO provides strategic guidance to enterprises on how to treat data as assets, and conceives and coordinates the corporate vision.

Executive support and empowerment can also help CDO view data and analysis from a corporate perspective, discovering new models and insights on customers, markets, business processes, and compliance. CDO of a government agency stresses: "the true value of modern data analysis becomes apparent when you start to make use of the idle data collected in separate departments." Finally, CDO will develop a comprehensive and systematic approach to managing data and analysis, reuse data in the enterprise, and simplify integration. CDO and non-CDO executives agreed to develop a unified strategic approach to promote "sustained and lasting competitive advantage".

Conceive and guide the formulation of strategies to stimulate change

CDO can accurately identify business opportunities in a vast amount of data, which is what makes them different. The responsibility of CDO is no longer limited to the traditional data work, but is committed to seeking new value growth points for enterprises, so as to improve the competitiveness of enterprises. Their work can not only help enterprises achieve a rapid return on investment, but also build a platform to create long-term value. For example, CDO will not just focus on existing data, but will strive to explore new data sources inside and outside the enterprise, combine data in new ways and ask questions, so as to help their enterprises discover new business opportunities and remain invincible in the market competition. Both CDO and non-CDO executives who participated in the survey said that in many cases, corporate leaders pay too much attention to day-to-day affairs and often ignore the proper investment in data and analysis.

In addition, survey participants believe that the greatest value of CDO is that they can close the gap between enterprises and customers. By discovering innovative ways to use data, especially new data streams in mobile and social technologies, CDO can help companies better understand customer experiences, predict customer behavior, and ultimately build stronger customer relationships. "after studying CMO's database, I was able to explain to them information they didn't know before, such as" what customers are like, what kind of products they want, and how they will buy, "says CDO of an insurance company.

CDO can also help enterprises change their decision-making model from intuitive to analytical-driven. Survey participants said that this is not only the biggest challenge facing CDO, but also the biggest opportunity for them to influence the company. People tend to rely on past experience and make intuitive decisions, but CDO will use empirical data to correct this subjective bias. "my job is to change the company's decision-making model," said an insurance industry CDO. "We no longer rely on intuition to make decisions, but on data. This shift makes it clear that there is great business value behind the data." CDO changes the use of data and analytics from a "project life cycle" to a "lifestyle" as part of this cultural shift as a whole. Survey participants said that within the enterprise, CDO is the best person to implement plans, build platforms, and implement solutions, and they can develop sustainable strategies to promote the recycling of data.

"whether you admit it or not, companies do need CDO because they rely on data to make decisions and respond to market stimulus.

Support. "

-said a banking CDO.

"the overall value of CDO is that they can take full advantage of all the data in the enterprise in innovative ways."

-said one CDO in the telecom industry.

How to build a data-driven Enterprise by CDO

CDO joining the top management team will help enterprises to gain the continuous and transformative business value brought by big data and analysis. As the leader in charge of data and analysis in the enterprise, CDO has professional technology and business knowledge, which can help enterprises to make effective use of data.

CDO conceives and guides the formulation of overall data analysis strategies for enterprises, using data analysis to positively influence business, stimulate corporate change, reshape corporate culture, and help enterprises change their decision-making model from intuitive to analysis-driven.

As shown in the following figure, CDO can build data-driven enterprises in a variety of ways. The exact approach to be taken will ultimately depend on the current state of the enterprise, specific business challenges and top priorities.

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