Though just some years in the past the function had been predicted to be dissolved by now, the Chief Digital Officer (CDO) has moved to heart stage in firms—and performs a essential function of their development and the unending and significant digital transformation, new analysis from shopper connection non-profit MMA International determines.
The agency’s new collection of studies, MMA’s Nice CDO Debate Collection: Is the CDO Function Extra Vital than Ever?, in collaboration with the College of Oxford, takes a deep dive into the function of the now-critical CDO, which has advanced partially as a result of international pandemic that accelerated the necessity for firms to seek out modern methods to connect with customers in a brand new and totally different regular. However the analysis signifies that CDOs are more and more proudly owning numerous core capabilities which might be wanted to drive change, together with enterprise technique, new product improvement, and expertise design, in addition to knowledge governance and know-how.
Six themes to emerge from 2021 CDO interviews:
Not solely have CDOs develop into more and more essential in main all necessary inner change, however now additionally more and more have P&L duty, placing them in a superb place for future management positions, together with the CEO spot.
“The function of the CDO has moved to center-stage at many firms as they’ve realized that that disruption is ongoing and transformation is important, and consequently, the function continues to evolve in significance,” stated Greg Stuart, CEO of MMA International, in a information launch. “Somebody within the c-suite wants to guide evolution as new challenges in companies will all the time come up, along with new applied sciences and particularly altering shopper expectations, typically set by firms outdoors the corporate’s sector, will prevail. In consequence, CDOs are finest positioned and oriented to not solely go searching corners and predict what’s coming subsequent but in addition to behave as antagonists for change.”
Three reinforcing areas of focus for CDOs:
“The oft-repeated adage of ‘the pandemic did extra for digital transformation than any C-suite govt’ might ring true in sure respects. Nonetheless it will be overly simplistic to color the function of all CDOs with the identical brush,” stated Chris Chesebro, Chief Digital Officer at Wella Firm, within the report. “CDOs, like all C-suite govt, should drive clear enterprise outcomes. Understanding the widespread drivers of digital-driven enterprise outcomes might help CDOs in a mess of industries additional speed up the constructive affect of these outcomes.”
Along with the in-depth exploration of the function of the CDO, the studies additionally present new, quantified details about a few of its foremost facets. Key highlights embody:
The function of the CDO is intently tied to enterprise outcomes
Greater than two-thirds (68 p.c) say their foremost process is to enhance monetary efficiency, not simply to “disrupt and drive change.” In keeping with that, about 1 out of two see “prime line development” and “margin effectivity” as their foremost measurable objectives.
Though 61 p.c of CDOs report back to the CEO, overlaps might exist with different C-level roles
In 68 p.c of the organizations, there may be additionally a COO, whereas in 52 p.c, there’s a CTO.
Two colleges of thought exist by way of the way forward for the CDO function
The primary one believes that CDOs ought to “construct in direction of a day when there is no such thing as a want for his or her function.” This cohort of CDOs (33 p.c) are likely to work for firms which might be extra prone to battle to develop and thus have extra short-term objectives and generally extra fragmented capabilities.
The second sees their function as “main the corporate by way of the ever-evolving cycles of digital disruption.” This cohort (57 p.c) tends to work for bigger firms that additionally develop extra constantly and have a clearer mandate to drive long-term change, proudly owning an expansive footprint of capabilities and P&L duty.
What sort of CDO do i would like now?
“The upskilling is essential as it’s an end-to-end journey or journey,” stated Marc Speichert, EVP and Chief Industrial Officer at 4 Seasons Lodges & Resorts and Chair of the MMA’s CDO Board, within the report. “Interested by upskilling the CDO advertising and marketing perform is as essential as the remainder of the group. It’s a broad scope that requires the precise stage of funding. You can not copy and paste what you do in advertising and marketing to different features as a result of the digital upskilling of the authorized perform or the R&D perform or provide chain will look fairly totally different than upskilling of the advertising and marketing perform. So, it’s important by way of what it requires and by way of assets and funding.”
That is the primary of three studies within the collection. The agency might be releasing the CDO Views 2022 white paper later in December, and the State of CDO, Benchmark Survey quantitative report in January 2023.
Obtain the complete report right here.
MMA International will current a free webinar collection on the essential and persevering with to evolve function of the Chief Digital Officer. Register right here.
