the health strategist
institute for strategic health transformation
& digital technology
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO),
Chief Editor and Senior Advisor
September 26, 2023
One page summary
What is the message?
Chief Data Officers (CDOs) face challenges in demonstrating their value in organizations, largely due to the focus on data management and governance, which can be resource-intensive and not always successful.
This article offers eight strategies for CDOs to showcase their contributions to enterprise value.
Key takeaways:
1. Add an “A” to the CDO Title
- Point: CDOs should take on responsibilities for analytics and artificial intelligence (AI) to demonstrate value.
- Statistics: Insights from analytics and AI can improve employee satisfaction, enhance customer relationships, and optimize supply chains.
- Example: Implementing data-driven insights to enhance customer experiences can directly impact business growth.
2. Embrace Data Products
- Point: Packaging data, analytics, and AI to solve specific business or customer problems creates long-term value.
- Statistics: Data product managers can oversee the process, ensuring alignment with business objectives.
- Example: Developing a data product that predicts consumer preferences can lead to targeted marketing efforts and increased sales.
3. Measure and Document Results
- Point: CDOs should measure and document the outcomes of data initiatives to validate their value.
- Statistics: Demonstrated ROI and time savings are essential metrics.
- Example: Documenting how data-driven automation reduced operational costs by a specific percentage shows a tangible impact.
4. Build Relationships with Business Peers
- Point: Collaborate with business leaders who recognize the value of data and analytics.
- Statistics: Influential peers can champion data products and drive organizational change.
- Example: A CFO advocating for data-driven financial forecasting can influence strategic decisions.
5. For Low-Maturity Organizations: Focus on Use Cases
- Point: Concentrate on a few strategic use cases to showcase value quickly.
- Statistics: Successfully implementing use cases demonstrates the potential of data initiatives.
- Example: Optimizing supply chain processes through data analytics can lead to cost reductions and operational efficiencies.
6. For High-Maturity Organizations: Build Analytics/AI Infrastructure
- Point: Experienced companies should prioritize scaling analytics and AI initiatives.
- Statistics: Creating reusable datasets and streamlining data platforms enhances productivity.
- Example: Developing a scalable AI infrastructure can support predictive maintenance, reducing downtime and maintenance costs.
7. Focus on Governance Without the Baggage
- Point: Simplify data governance to encourage data privacy and compliance.
- Statistics: “Governance by design” and data marketplaces promote responsible data practices.
- Example: Implementing data privacy guardrails can prevent costly data breaches and regulatory fines.
8. Create a Data-Driven Culture
- Point: Establishing a data-driven culture is challenging but crucial.
- Statistics: A survey reveals that only 21% of firms have a data-driven culture.
- Example: Tailoring data literacy programs by department can improve data-driven decision-making.
These strategies help CDOs overcome the barriers of data management and governance and showcase their value in driving data-driven transformations within organizations.
DEEP DIVE
This summary was written based on the article “8 ways chief data officers can demonstrate value”, published by MIT Management and written by Beth Stackpole, on September 13, 2023.
To read the full article, access https://mitsloan.mit.edu/ideas-made-to-matter/8-ways-chief-data-officers-can-demonstrate-value
