Petroc Taylor
Research expert covering global developments in the use of data
The past year has seen a range of crises mount significant challenges to businesses worldwide. For many, the key to navigating these economic headwinds lies in the effective use of data, with advanced analytics enabling organizations to better navigate shortages, delays and disruptions. These efforts are increasingly being led by a relatively new additions to the c-suite – the Chief Data Officer (CDO). The share of leading global firms with a CDO rose to 27 percent in 2022, up from 21 percent the previous year. The role is particularly prevalent in Europe, with over 40 percent of top European firms looking to a CDO for data leadership.
Data strategy driving results
According to a 2022 survey, around half of CDOs or other data leadership executives see their primary responsibility as the formulation and implementation of a data strategy, while only 16 percent see analytics as their primary concern. Indeed, the rise of the CDO role has accompanied a reassessment of the role that data can play. Rather than data being considered a necessary day to day business function, many organizations are instead treating data as an asset which can be aligned with wider business objectives. A data strategy can therefore ensure the correct use of data throughout an organization. According to a recent study, over nine in ten leading firms reported measurable value from data investments in 2022, up from only 50 percent in 2016. Meanwhile, an analysis of the world’s largest publicly listed companies has found that, in most industry sectors, those with a CDO in place report stronger revenue growth than those without.CDOs face challenges moving forward
Despite growing recognition of the role and promising results, CDOs face significant internal challenges. The primary challenges concern the implementation of data strategies in the wider business, with almost three quarters of respondents to a 2022 survey citing a lack of data literacy as a hurdle, while around half pointed to a lack of data culture at their organization. As of 2022, only around quarter of learning and development professionals said that digital upskilling was the most important aspect of workplace training, despite strong interest among workers in undertaking such training. CDOs therefore face an uphill battle if they are to avoid the derailment of effective data strategy.
