Moderator: Tony ShawCEO, DATAVERSITY

Speaker: John LadleyPresidentIMCue Solutions

#CDODataStrategy

This Webinar is Sponsored by:

Coming Events

• Data Governance Winter Conference• Fort Lauderdale, FL - December 8-12, 2014

• Enterprise Data World• Washington, DC – March 29-April 3, 2015

• Data Strategy Forum• Washington, DC – March 30-31, 2015

• Upcoming Webinars• Nov 11 – Metadata Strategies with Peter Aiken

• Nov 20 – Selecting the Right Data Governance Approach with Bob Seiner

• Dec 4 - Leading the Enterprise Data Strategy and Organization with James Tyo of BB&T and John Ladley

The Status of the Chief Data Officer

• Does the reality support the hype?

• What do CDO’s actually do (in practice, not theory)?

To learn these and other fascinating answers (drum roll please)…

WE TALKED TO THEM!

Agenda

• Methodology

• Findings • Survey

• Interviews

• Observations

• Conclusions

• Q & A Session

Methodology

• 2014 survey conducted by DATAVERSITY™ titled “The Role of the Chief Data Officer.”

• Series of interviews conducted in Sept-Oct 2014 by Tony Shaw (CEO of DATAVERSITY) and John Ladley (noted industry analyst and CEO of IMCue) with current CDOs across a range of industries.

Primary Interview Questions

• How long have you been in the job?• What motivated your organization to appoint a CDO?• Who does the CDO report to? What’s the organizational

structure?• What experience does it take to become a CDO?• Do you have a dedicated staff and budget?• What are your functional responsibilities? • What are the differences between the CIO and CDO

roles?• What are some of the pitfalls and unrealistic

expectations for CDOs?• What issues are on the horizon for Chief Data Officers?

Who did we interview? (with thanks)

• Alberta Environment (energy, provincial government)

• BB&T (banking)

• City of Philadelphia (local government)

• FCC (regulatory)

• Federal Reserve Board (financial, federal policy)

• NCCI (Insurance)

• Ogilvy & Mather (advertising)

• Penton (publishing & information services)

• RPdata (real estate, information services)

• ShopAdvisor (e-commerce)

• TD Ameritrade (securities)

• Texas Health and Human Services (health, state govt)

• …plus others who requested anonymity

Findings (Theory)

Consensus that the CDO is a high-level position

Findings - Structure

• Most CDOs have been in the role less than two years. Some for just a few months. The longest since 2005

• CDOs mostly report to the CEO, COO or a key business function. Very few CDOs report to IT and the CDO is often a peer of the CIO

• Most CDOs operate under a shared services structure and rely on consensus-style methods to influence stakeholders

Findings – Role/Function

• The most common functional responsibility of CDOs across industries is defining and overseeing organizational data strategy

• Managing and/or advising on Data Governance and DQ

• Across industries, most CDOs are “out front” when it comes to educating the business and evangelizing to both internal and external stakeholders

• Many CDOs provide advice and/or support for data analytics

• Some have responsibility for data operations (or aspects of data operations) and/or application development

Findings – Specific Industry Roles

• In government CDO roles, a strong emphasis on Open Data and transparency

• In financial services, often a risk management and/or compliance purpose

• In information and data services companies, the goal of “monetizing” the data

• In e-commerce, lots of time on data integration, ingestion and working with outside partners

Findings - Challenges

• The single biggest challenge faced by CDOs is organizational and IT change management

• The most significant pitfall cited by CDOs about doing their job was underestimating the difficulty of changing organizational culture

Findings – CIO vs CDO Roles

• “The CDO is responsible for all Data Management into, within, and out of the enterprise data environment. That includes its governance, strategy, and use. Anything outside of that which relates to technology is the responsibility of the CIO”

• “Despite me holding both roles, they are very distinct. The CDO role is a business-focused role and the CIO is technology-focused”

• “The CIO focuses on infrastructure, application development, security etc. The CIO manages the car; CDO makes sure the fuel is high octane”

Observations

• Common challenges so far• Culture

• Difficulty due to size of problem or challenges

• Budget

• Understanding of role

• Recognition of relevance

• Occasional mis-labeling

Observations

• Best practices so far • Strong organizational change

management activity

• Evangelizing and PR

• Dedicated budget and authority

• CDO qualifications are specific to the business. There is no “one size fits all”

Observations

• We did not see any CDOs as the “head of analytics”; we expected more CDOs to head up analytics

• We could identify no CDOs with direct responsibility for data security or for protecting their organization against data breaches (and yes, we asked)

Observations

• Myths• If the CIO had worked as intended

we would not need a CDO

• The CIO should be the CDO

• The CDO is supposed to be in charge of analytics

• Red Herrings • “I am an expert on CDO

development”

• “Our consultancy can train your CDO”

On the Horizon for CDOs

• Keep working on Data Strategy

• Coming to grips with (new) data sources, what are they and how do we control them?

• Next generation analytics and data science

• Data Innovation Lab and Centers of Data/Analytics Excellence

• Engaging and knowing the customer

• Data monetization and productization

• Privacy/Security

• Recruiting and hiring

Forecast

• Expect the adoption of CDOs to increase, and will likely double every 18 months over 4 – 6 years

• The next wave of CDO appointments will likely happen in the healthcare and life sciences sector. They have similar drivers (governance, analytics, regulation, risk) to financial services

Forecast

• We predict an expansion of new CDO appointments in tertiary education, state and local government, and e-commerce

• Due to embedded cultures, organizations in less regulatedsectors (retail, consumer products, manufacturing) will continue to struggle with “top data job” status in spite of evidence that it is an effective role

Conclusions

• Do you need a CDO?• Yes if…

• Maybe if …

• No if …

Q & A Session

Contact Us

• John Ladley• @jladley

• jladley@imcue.com

• Tony Shaw• @tonyshaw

• tonyshaw@dataversity.net