Editor's Note: In this blog, we curate relevant and remarkable content for data and analytics community. Here's an interesting piece written by Tina Tang.
Data is the lifeblood of the modern enterprise. In a healthy organization, it flows freely and enriches all of the functions, processes, organs, and limbs of a business. Indeed, data has become so essential that the CDO is emerging as one of the most important executives in the new C-level suite.
Data as an Asset
In every kind of organization – large or small, from public sector to retail, data is now regarded as an asset. And because any asset needs more than reactive management of day-to-day issues to deliver maximum value, businesses are recognizing the need for proactive and visionary data leadership.
To provide this, the CDO position was first introduced as a key strategic role in the highly-regulated government and finance sectors. The last couple of years have also seen CDOs appointed across multiple other industries.
The CDO role is still not widespread – there were only 250 people with this job title at the end of 2014, according to David Mathison, the founder and CEO of a professional association known as the Chief Digital Officer Club. However, the chief data officer position has been identified as one of the top emerging executive posts.
More than Data Management
While chief information officers (CIOs) own an organization’s IT systems, CDOs oversee all of the data that flows through those systems. Data policies, procedures, and governance are normally part of their remit. In addition, CDOs are increasingly spearheading data monetization and value creation efforts.
Building a strong data foundation is just the beginning of a CDO's responsibilities. By ensuring the free flow of sophisticated data and healthy analysis behind the scenes, the CDO can help the rest of the business simplify processes.
A top-notch CDO is one who has a deep understanding of how data yields growth, and how new data flows can lead directly to new sources of revenue and cost control. Well thought-out data strategies can make complex transactions look routine, and unlock hidden insights that identify a company’s best customers and its least valuable suppliers.
Maximizing Potential Returns
As CDOs are hired in industries beyond finance and government, we see their potential to protect and enhance return on large investments. For example, a first-class CDO is essential to successful mergers and acquisitions.
Too many of these projects suffer delays and diminished returns because the newly-combined organizations simply do not speak the same language. Parallel systems limp along for months or even years.
CDOs can change that, because they are masters of rationalizing and translating data. They can accelerate the timeline of a post-merger transition on every dimension, from delivering a comprehensive view of joint customers to ensuring that sales teams are properly compensated.
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This article entitled "The Chief Data Officer: More than a Data Minder" was originally posted on SAP Community Network. To read full story, click here.
By Tina Tang
Tina serves on the MIT Chief Data Officer program’s executive committee to grow the university’s Chief Data Officer community, a group of CDOs that share, learn, explore, and support research, best practices, and new technologies. Tina Tang is a senior director of SAP’s Products and Innovations division. She is the lead for the company’s chief data officer, master data management, and data governance programs. With over 15 years’ experience in enterprise software and 20 years in high technology, she has held diverse roles including data governance, product marketing, community, consulting methodology, documentation, inside sales, digital marketing, and PR. She is also member of the board of executives for Mina’s List, a nonprofit based in Cambridge, Massachusetts. Former positions include roles at Siperian and Oracle Corporation. Tina is an alumnus of the University of Texas at Austin.
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