What is a Chief Data Officer? CDO, defined

What is a Chief Data Officer (CDO)? How does their role differ from that of a Chief Information Officer (CIO) or Chief Analytics Officer (CAO)?

Companies have become increasingly data-driven. Technology has opened the door to boundless data tracking, and that data is now being used to drive everything from product innovation to employee engagement. Since data is playing a bigger role in determining a company’s overall strategy and business success, it’s no surprise that we’ve seen a surge in the number of companies introducing Chief Data Officers (CDOs) to their executive teams. 

The first CDO was appointed in 2002 at Capital One. A decade later, only 12% of major companies reported having a CDO role, and in 2019, it was up to 67.9%. 

But what does a CDO do? And where should they sit in your organization?

What is a Chief Data Officer: CDO Defined

The Chief Data Officer (CDO) is a c-level executive responsible for managing the strategy, quality and governance of data, interpreting data, and leveraging value from data as a business asset. They are responsible for getting the most business value out of the company’s data.

What that includes will vary depending on what the business is and how it makes money. For example, the CDO for a social networking site whose business model is based around monetizing customer data will have different goals and tools than their counterpart at a bank or medical center. 

What does a Chief Data Officer do?

A Chief Data Officer (CDO) is responsible for using the company’s data to meet the broader business goals, this includes:

1. Developing and managing a data strategy
2. Implementing data governance (rules, practices, and processes for how the company collects, keeps, and uses its data)
3. Interpreting the data to drive business decisions
4. Ensuring all sensitive data is safe and the company is adhering to data regulations (such as GDPR, etc)

In the wake of COVID-19, the Chief Data Officer role quickly evolved, as data-driven digital transformation went from being high-priority to mission-critical. Companies must use customer, employee, and market data to make shrewd strategic business decisions. 

Chief Data Officer O vs. Chief Information Officer

Chief Information Officers (CIOs) are responsible for selecting, implementing, and managing the technology systems within their company to help it run at its best.

While some people think CDOs should report to the CIO, many others see the two roles operating best as partners, with the CIO being in charge of the technology infrastructure, and the CDO being in charge of tying the data and insights collected by the infrastructure back to the business priorities.

Chief Data Officer  vs. Chief Digital Officer

Chief Digital Officers came on the scene in the early 2000s. They are responsible for driving digital innovation in the business – either running the digital side of a company or leading the charge in digital transformation. Gartner predicts that by 2023, 50% of chief digital officers who don’t have a chief data officer counterpart will need to assume the responsibilities of that role in order to succeed.

CDO vs. Chief Analytics Officer

The difference between a Chief Data Officer and Chief Analytics Officer depends entirely on who you ask and the nature of the company. For some, the CDO role is a natural evolution of the CAO, who traditionally has been responsible for data analysis and business intelligence. But some organizations still delineate between the two, having the CDO focus on higher-level business objectives based on the insights driven by the CAO.

Chief Data Officer: The role by any other name will still be here to stay

We often talk about how the breakneck pace of innovation is constantly changing the rules of business, so it’s no surprise that we’ve seen a bit of a C-suite shuffle over the past decade when it comes to identifying the exact structure of leadership roles. 

Just as data is used differently in every business, the role of the Chief Data Officer will look different too.

But the fact is, businesses will continue to be data-driven from here on out. So whatever name the role has, and wherever it fits on the org chart, organizations will need someone to bridge the gap between data and business outcomes if they want to succeed.