2023 Chief Data Officer Study: Turning data into valueOriginally published 20 March 2023
Originally published 20 March 2023
No two CDO paths are alike.
But some are better than others.
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Originally published 20 March 2023
43%
higher performance in innovation by leading CDOs compared to their peers.
9%
greater data capitalization for companies with leading CDOs—over those without.
7%
higher revenue growth for organizations where top-performing CDOs are forging a new path forward.
8% of Chief Data Officers spend less than peers for greater impact. How?
Leading CDOs spend less on data strategy and management than their peers, yet achieve equal or greater annual revenue growth. In their actions and through their choices, they’re leaving a trail of breadcrumbs for other CDOs to follow and learn from.
43%
higher performance in innovation by leading CDOs compared to their peers.
9%
greater data capitalization for companies with leading CDOs—over those without.
7%
higher revenue growth for organizations where top-performing CDOs are forging a new path forward.
It’s a trail worth following. This leading group of CDOs—which we call Value Creators—are 50% more likely to be responsible for increasing data ROI than other CDOs and are outperforming them by 40% in innovation.
→ See also: IBM CDO Inderpal Bhandari on how the right data foundation can empower a successful ESG strategy.
Based on interviews with 3,000 CDOs from around the globe, the 2023 CDO study from the IBM Institute for Business Value delineates how CDOs can position their organizations to derive the business transformation value of insights from integrated data. This report answers questions such as:
Chief Data and Analytics Officer, Carruthers and Jackson
Some enterprises take a “show me the money” approach to data, spending prodigious sums in a bid to generate outsize value. While there is nothing wrong with that approach—you can make progress via blunt force—our research shows a better way.
In our study, we identified heroic Chief Data Officers, an elite 8%, whose organizations allocate proportionally less of their revenue to data, yet generate equal or greater business value. We call these CDOs Data Value Creators because they have created a clear line of sight from data to business value. Four things leading CDOs do differently:
Not surprisingly, perhaps, Value Creators are 50% more likely to be responsible for increasing data ROI than other CDOs; the expectation of a tie to the bottom line is built into their job. They are also more likely to report directly to the CEO.
Interestingly, what defines these Value Creators is not a collection of flashy, “big bang” actions.
On the contrary, it’s an emphasis on a carefully orchestrated low-key approach. These CDOs focus on planting seeds of change with new investments, carefully plotting out the “why” and “how” from those investments to value achieved. Most importantly, they move in lockstep with the business, in the process cultivating the right partnerships internally and externally.
- Calculate ROI early and often.
- Use data to track and report performance in new ways.
- Empower teams with data literacy.
- Establish clearly defined thresholds for automated decision-making.
- Pursue new sources of value through data.
- Apply AI for better, faster decision-making.
- Have the right data platform in place to process the data you collect.
- Manage compliancy with data legislations and standards.
- Apply predictive advanced analytics.
- Share cybersecurity threat intelligence.
- Collaborate with transparency and visibility.
- Make use of your mutual critical talent and skills.
- Calculate ROI early and often.
- Use data to track and report performance in new ways.
- Empower teams with data literacy.
- Establish clearly defined thresholds for automated decision-making.
- Pursue new sources of value through data.
- Apply AI for better, faster decision-making.
- Have the right data platform in place to process the data you collect.
- Manage compliancy with data legislations and standards.
- Apply predictive advanced analytics.
- Share cybersecurity threat intelligence.
- Collaborate with transparency and visibility.
- Make use of your mutual critical talent and skills.
