Chief Data Officer Trends companies need to be aware of in 2016
For companies that use or plan to implement Big Data applications for harnessing large datasets for accurate marketing and business strategies, the risks pertaining to security, data complexity, poor analytics, and high costs, are high.
For this reason, companies may be on the lookout for securing a Chief Data Officer (CDO) for taking over the task of making big data applications far smoother and of value for organizational use. IBM has reported that CDOs are being hired by 25 percent of Fortune 500 companies, a trend that is expected to rise due to big data challenges.
With this in mind, it is only natural that companies pay close attention to CDO trends in 2016. These are the following.
CDO role to become a board level position by 2020
According to Experian, the role of CDO is anticipated to become a senior board level position by the year 2020. This is evident by the growing need for CDOs to take leadership of crucial corporate tasks, such as data gathering, data optimization, data management, and more. The CDO in question will be a mediator between data metrics and data strategy, working directly under the CIO and taking matters of policy, compliance, and risk management of data.
Businesses that are eager to implement big data applications should know exactly how the CDO can fit within their organization and what organizational hierarchies they need to adopt to ensure the value from data officers is fulfilled to its full potential.
Need for collaborative efforts
Another aspect that organizations need to bear in mind is that the role of the CDO is not one that works in isolation. In fact, it is a C-level position that can only be beneficial if applied alongside others, such as CIOs, CSOs, CMOs, and CTOs.
It is important to note that organizations do not assign overlapping job roles and responsibilities and are able to distinguish the job description of a CDO from that of a CIO. The CIO will be in charge of designing the role of the CDO and set clear lines of communication between the CDO and the CIO and CMO roles.
Rise in use of analytics and extraction of valuable insights
Big Data applications consist of numerous large datasets resulting in a significant growth in data analytics usage. Companies thus need to hire CDO’s to effectively manage data analytics and analysis capabilities for discovering new revenue streams and formulating corporate strategies.
Without a CDO, companies will face unprecedented risks of collecting bad data and using poor analytics functions, the result of which will lead to wastage of investment and resources. The CDO should be tasked with teaming up with CTO or IT department to look for possible ways of operationalizing the analytics functions to benefit from more accurate decision making skills.
Data governance and data management importance
One of the responsibilities of a CDO is to ensure that a clear standard is established for data governance and data management strategies that will be intended to achieve digital competitive advantages in the years to come. CDOs should work closely with CIOs to ensure that a robust data infrastructure is put in place and that governance issues are reported on a routine basis. The data infrastructure will be developed to allow for greater data accessibility, resulting in the attainment of future business initiatives and goals.