Chief Digital Officer of Chief Digital Officer, CDO

Who such CDO: 5 differences from CIO

In the conditions of digital transformation of business of the company had more opportunities for the solution of old tasks and also new tasks with which it is necessary to deal. On this background the profession of the Chief Digital Officer arose. The border between obligations of CDO and CIO (Chief information officer) is indistinct and requires the separate arrangement in the specific companies as these roles not only should supplement each other, but also interact closely for accomplishment of digital conversions to the organizations. Nevertheless there are several features which distinguish the Chief information officer from the Chief Digital Officer.

CDO is responsible for digitalization and heads the project on transformation

CDO is a business and development

The specialist holding a post of CDO is concentrated first of all on business and development of the company whereas the position of CIO assumes emphasis on creation of the stable and protected IT infrastructure. The main thing for responsible for digital to transformation are technical expertize in new technologies, understanding of business and an opportunity not only to create vision of the area of work of the company, but also an opportunity through some time to bring it into this point. In such plan of a role of CDO and CIO are sometimes combined, but this case becomes less widespread in the world.

CDO is responsible for a company performance in the conditions of digital economy therefore its area of responsibility corresponds given to the direction. Here data and mechanisms of work with them, development and strategy implementation of digital transformation, training of employees, accumulation of competences, creation of a knowledge management system, "digitization" of products and company services, formation of a packet new — digital" — products and services, transformation of business processes of the company get. Creating a position of the Chief Digital Officer, the company in fact decides to pass to a new business model.

CDO — the idea man for CIO

Always better for the company if directors of information technology and to digital-technologies productively cooperate. CIO can be some kind of right hand of CDO, helping it to implement the generated ideas. The chief information officer is engaged in management of IT infrastructure of the company, and CDO coordinates the transformation process caused by development of digital technologies. It is bad when these heads begin to compete, fight for the budget and projects, clients and business partners.

CDO can help the Chief information officer with creation of the effective platform for users by means of digital innovations. The main priorities of CDO are connected to monitor the last technology innovations and to improve customer interaction. The chief information officer can focus on investments into IT and cost reduction.

CDO is closer to clients

The activity connected with the company front office, collecting and the analysis of client data and also — the most important — digitization of the operating company services or creation of new digital services belongs to duties of CDO. In turn, the Chief information officer is more focused on information support of the working business processes using standard IT solutions.

• High-quality work  of CDO  is capable to replace or improve  marketing of the company
• Consideration of data with all interrelations, allows not only to define the main characteristics of clients and to predict their potential according to requirements of the market and also to reveal influence on these indicators both internal business of processes, and external factors
• Identification of specifics and trends, creating active and about the active provocative actions changing standard behavior and in reflection of it in data to reveal new opportunities "hook on the client", create a unique product, define the strategy of advertizing, improve business process, thereby having increased profitability of the company

• • Ensuring continuous and correct work of storage, optimization and development of management tools and monitoring
  • Preparation of initial data: prospecting data analysis, statistical analysis
  • Creation and development of the services based on data analysis and machine learning. administration and scaling
  • Requirements analysis of the internal customer, market trends, competitive analysis
  • Formation of the long-term plan of development (Roadmap)
  • Development of offers on development of functionality, writing of terms of reference for developers
  • Visualization of the received results and interpretation of forecasts for further use of the forecast business
  • competitor analysis (direct, product, substitutes, business models), description of "ecosystem" of the markets
  • carrying out marketing researches, desk researches
  • fast check of hypotheses and recommendation about building of business models
  • business performance (financial and actual), business development planning

CDO is closer to the management

From the Chief information officer the organization of technical base and its full-fledged work is required. The specialist needs to correlate the purposes of the company and resources, to be responsible for creation of IT systems and the organization of information flows. And CDO, being concentrated on strategic objectives of implementation of some technology, should in close contact with top managers build vision, strategy and the detailed action plan on transfer of business processes, products and company services to a digital format and providing digital services to customers.

The position of CDO becomes more and more important in the companies therefore the people occupying it quite often include in Boards of Directors. Such specialists receive more control over distribution of the budget of the company as means which for them are selected, spent first of all for risk minimization and business development.

CDO should have versatile experience

Some companies which decided to create a position of the Chief Digital Officer are forced to look for long such specialist as that should have versatile experience — in internet marketing, social networks, e-commerce, transaction business, digital channels of sales. Besides, from CDO knowledge of technologies of digital transformation, digital strategy and business models constructed on digital technologies and, at last, ability and real experience of digital transformation is required.

The position of CDO is most often widespread the large companies with staff from 10 thousand people whereas in the small organizations the role responsible for digital technologies often is executed by key managers, like marketing directors in the world.

According to recruiting   company Harvey Nash, by 2018 the average salary of the Chief Digital Officer in the world was  about $175,303 a year. Taking into account weighted average rate of dollar in 62.7 rubles for 2018 monthly salary in 916 thousand rubles turns out.

Conclusion

In general the edge between CDO and CIO becomes more and more clear, however depending on a maturity of the company the Chief Digital Officer can perform different functions and tasks: from a motivator and the evangelist at a stage of emergence of the first initiatives of an occasion of transformation and "didzhitalization" to the architect of IT systems at practical implementation of changes and innovations in business processes. Somewhere roles of CIO and CDO are crossed so strongly that there is no company sense to leave two positions — the truth, it belongs to small business rather.

CDO in Russia

In 2017-2018 the large Russian companies began to get CDO even more often. In many of them as of the end of 2018 such position already or is, or is planned. TAdviser studied that it influences growth of popularity of this position in Russia and what such employees are responsible in the companies for. One more important question – as at the same time changes a role of the Chief information officer. Read more here.

History

2013: Growth of interest in a position of Chief Digital Officer

The companies are more and more interested in a position of Chief Digital Officer worldwide. Came to such conclusion analytics of Gartner which made in the spring of 2013 the forecast of market development of work in the field of IT. By 2014 19% of the companies are going to employ Chief Digital Officer, and 17% are in search of the candidate for a similar position – Chief Data Officer. However for the present early to be afraid of CIO for the place.

In general the research Gartner showed that in the opinion of business in the next 2 years the role of CIO will be indefinite. The keen interest of business in innovations and data management can be expressed both in reconsideration of a role of CIO, and in creation of new positions in the company. Reductions, according to Gartner, expect a pool of managers on IT as talented and initiative employees, but not managers are required for the companies more and more.

We observe transition to the leadership focused on technologies. The modern market is complete of opportunities which need to be investigated. In many companies the management tries to take a maximum from these opportunities, creating new positions for the solution of specific technology objectives, – Mark Raskino, the vice president for researches of Gartner company explained.

In a research it is also emphasized that the IT endures the first serious shift since 1998. All companies anyway should rethink a role of CIO and IT department in general. Many organizations are expected that their CIO will cope with time calls, and some look for the new Chief information officer, more experienced in work with data. Mark Raskino notes that the position of Chief Data Officer is relevant for those companies which work with the big and difficult structured pool of data.

2011: New York appointed the first CDO

The Chief Digital Officer (chief digital officer, CDO) moves forward for a role of the corporate superstar. When the companies need a rare combination of the technical specialist of the top class and the expert on business, all of them address the professionals capable to provide sure leadership in constantly changing market more often. As a result quickly the sizes of compensation packets of such professionals grow, and their search becomes more intensive, affirms as the research "Rise of the Chief Digital Officer" prepared by Russell Reynolds Associates company which is engaged in selection and assessment of heads on a global scale.

There is huge demand for CDO. And it will remain high as all new and new companies from different sectors aim to expand use of digital technologies — said So Rikkards, the managing director of Russell Reynolds Associates on technology and conversion of business to an electronic form. — They need to ask a question whether their heads have knowledge and experience which will allow to understand the difficult world of mobile, social and local technologies.

Really, in 2011 New York for the first time appointed the CDO.

You See Also

• Chief Data Officer (Chief Data Officer, CDO)
• Chief Digital Officer of Chief Digital Officer, CDO
• The Chief Digital Officer (Chief Digital Officer, CDO) in Russia
• The chief information officer (CIO - Chief Information Officer)
• Chief information security officer (Chief information security officer, CISO)
• The chief financial officer (CFO - Chief Financial Officer)
• System administrator
• Data scientist (data scientist)

Notes