The Chief Digital Officer of Chief Digital Officer, CDO in Russia
The position of the Chief Digital Officer (Chief Digital Officer, CDO) began to extend actively in the West, since about 2012-2013. By Gartner estimates, in 2013 6% of the large companies had a position of CDO, and by 2019 analysts predict existence of such position in the state already at 90% of the large companies. Russia not an exception in this trend.
5 differences of CDO 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 duties 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. In more detail here.
2020: The Ministry of Telecom and Mass Communications developed requirements to directors of digitalization of federal agencies and will test them before appointments
As TAdviser knew, on February 4, 2020 sent to the Ministry of Telecom and Mass Communications to federal agencies, the agencies and services of the requirement to candidates for a position of the deputy manager of the federal executive authority responsible for digital transformation (Chief Digital Transformation Officer, CDTO) and also methodical recommendations about conducting testing of their management skills. Read more here.
2018
In Russia - a boom of CDO. Who such director of digital transformation and why he is necessary?
In 2017-2018 the large Russian companies began to get even more often CDO (Chief Digital Officer, not to confuse with Chief Data Officer - the Chief Data Officer). 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.
How many in Russia CDO
According to the research KMDA of digital transformation in Russia published in October, 2018[1]in 18% of the polled companies there is already CDO while in 2017 the share of like those made only 5%. In total during the research representatives of 300 companies from 15 industries were polled. Another 28% of the polled companies are in search of such employee.
At the same time in 29% of the companies said that CDO is not necessary to them, and in 25% of the companies do not even know who is such. Nevertheless, progress is available.
Drivers of emergence of a new position
Expression "digital transformation" sounds nearly at every turn and is considered by many as a necessary element of competitiveness and also increase in efficiency of the companies and a state administration. And it can be carried to the main drivers of emergence of a position of CDO in the organizations in Russia and abroad.
According to analysts of KMDA, in 2018 35% from respondents of 300 Russian companies already have the ready strategy of digital transformation and implement it, and more than 26% of the companies are going to develop like that. On this background for the last few years CDO and heads on digital transformation with other names appeared in a number of the large companies, for example, in Sibur, VimpelCom (Beeline works under a brand), Home Credit Bank, "Ural Bank for Reconstruction and Development", Proagro and others.
The Russian specifics are that considerably the engine of digital transformation is the state here. In 2017-2018 in Russia it was widely discussed and the national project "Digital Economy" assuming digitalization of all key industries in the next years was approved. Perhaps, it is possible to call it one of the main drivers of emergence of CDO in the Russian state corporations and the companies with state participation.
Inevitability of transition to "digit" pushes the last to development of the corresponding strategy and plans. And appearance of the individual employee who is responsible for their development and implementation naturally fits into this context.
Regulators at the same time directly stimulate creation of a position of CDO. The Ministry of Economics started a pilot project on implementation in 2018 in management of the companies with state participation of institute of CDO, having initiated development of the strategy of digital transformation in them. It is going to sum up its results in March, 2019.
14 organizations agreed to participate in this pilot project: Almaz-Antey concern, ALROSA, Aeroflot, Gazprom Neft, Zarubezhneft, KAMAZ, United Aircraft Corporation, Okeanpribor, Russian Post, Russian Railway, Rosatom, Rostelecom, "Shvabe", NPO Energomash.
By November, 2018 in a number of these companies CDO already appeared. At the beginning of 2018 the directorate of digital transformation appeared in Rosatom. In May in state corporation also the vacancy of CDO was closed: it was occupied by Ekaterina Solntseva who came to the company from Abbyy.
In Gazprom Neft in April, 2018 the directorate on digital transformation was created and her head – CDO Andrey Belevtsev who was earlier working as the chief executive in RooX company is appointed. The center of digital transformation was also created, for example, in KAMAZ, it in July was headed by Eldar Shavaliyev to KAMAZ working in Ernst & Young.
In "Schwabe" (enters into Rostec) told TAdviser that in their holding the position of the director of digital transformation is going to be entered in 2019. As of 2018 work in this direction is carried out by the director of the department of information policy and information technologies Sergey Podgornov who passed from Lukoil-Inform.
Decision makings on CDO expect in Rostelecom. The company told TAdviser that for this purpose at first wait for emergence of the directive from the Ministry of Economic Development and its consideration on Board of Directors. At the same time projects on digital transformation in general are already stated in the program of the innovative development of Rostelecom.
Case is not limited to the companies and state companies. There are high-level initiatives of introduction of a position of CDO and in the Russian departments. So, in July, 2018 the minister of digital development, communication and mass communications Konstantin Noskov reported that in the key Russian ministries there have to be special deputy ministers on digital development performing[2].
For officials it is going to start special courses of management of digital transformation. They will be organized based on a RANEPA with assistance of the Center of Strategic Development (CSD), ANO Tsifrovaya ekonomika, Analytical center at the government and Sberbank.
The program is expected the government employees of regional and federal level responsible for digital development and conversions within the Digital Economy national project, so-called Chief Digital Transformation Officer (CDTO)[3].
CDO functions
In a broad sense CDO is meant as the specialist who is responsible for development of strategy of digital transformation, change of a business model and business processes for business digitalization, helps the organization to transform traditional analog products and services to a digital format.
By estimates of researchers of KMDA, the position of CDO is taken most often by the former Chief information officers, on the second place – the former employees of the large digital-agencies and Internet companies which came over to client side and also managers from digital startups.
In relation to "Digital economy" of CDO it is possible to call the conductor of uniform policy of digital development. It provides project implementation management of digital transformation and coordination of projects of "Digital economy" with other authorities. Such definition is given by "Centre for Strategic research" (CSR).
The Ministry of Economic Development together with TsSR, Rosatom, Rostec, ANO Tsifrovaya ekonomika and the Agency of strategic initiatives in 2018 developed the recommendations of functions and powers of heads of the companies about digital transformation. According to these recommendations, CDO will be responsible for development and strategy implementation of digital transformation which will be implemented into the companies in the project mode and also for formation of corporate competence center in the field of digital technologies.
 | The essence of digital transformation of the company for which CDO will be responsible consists, first of all, in implementation and development of the end-to-end technologies provided by the Digital Economy of the Russian Federation program: Big Data, neurotechnologies and artificial intelligence, quantum technologies and others, - explained in March, 2018 in ANO Tsifrovaya ekonomika. |  |
The Ministry of Economic Development consider: it is important that CDO directly submitted to the CEO as the strategic task will be assigned to it and it is necessary to be responsible for digital transformation of all divisions – from HR to production.
Role of the Chief information officer during a digitalization era
With transition to digital rails the role of the Chief information officer in the companies often changes, however, it happens in the different companies differently. Where there is CDO, under the authority of the Chief information officer can remain, for example, mainly, an operational part of IT, the supporting processes while CDO rises at a strategic wheel.
As an example here it is possible to cite Rosatom. If earlier the Chief information officer was responsible in the company, including, for development of IT strategy, then with the advent of CDO powers were separated. CDO is focused on a strategic part, and the Chief information officer, mainly, is responsible for development of IT, creation of IT architecture, support of corporate systems, for ensuring process of program and portfolio IT project management.
At the same time, under the direction of CDO he is responsible also in Rosatom for development and strategy implementation of internal digitalization of corporation, including questions of application of disruptive technologies as its bases.
Some large companies and state corporations, in turn, do not hurry with introduction of a new position yet, assigning to digitalization to "traditional" IT heads. In this case at Chief information officers the range of duties remains approximately to the same or even extends.
Here as an example it is possible to cite the Russian Railway and Russian Post. In Russian Post, in particular, digital transformation began long before the approval of the Digital Economy national project. It lasts more than three years and includes digitalization of logistics, transactions in departments, transfer of customer interaction to online and creation of the corporate platform of data.
| | In the company the position of CDO is not personalized now. In fact, not the first year our employees already perform the CDO functions. For work and creation of digital products we created separate digital division – Mail Technologies. Now in the organization more than 300 people work, and in the next years their number will increase up to 3 thousand employees. "Mail Technologies" will become the uniform center of digital competences and will be able to create digital solutions necessary for us, - Sergey Emelchenkov, the Deputy CEO for IT of Russian Post explained TAdviser. | |
Similar situation and in NPO Energomash where as of fall of 2018 the position of CDO is combined with a position of the CIO. It is occupied by the Deputy CEO for information technology development of NPO Energomash Denis Savenkov.
The increasing interest of the Russian companies and the states to digital transformation allows to assume that in the next years the number of CDO in the Russian companies will continue to increase.
In all state companies of Russia top managers on digital transformation will appear
Till April, 2019 in all Russian state companies and corporations new top managers — heads on digital transformation will appear.
They will be engaged in implementation of technologies of Big Data, a blockchain, artificial intelligence, robotics and secsorics, Internet of Things and virtual reality. It is written by Izvestia with reference to the draft of the plan for formation in the companies of new structural divisions prepared by the Ministry of Economic Development today. Work is conducted within the Digital Economy state program approved in 2017.
The first top managers of the new direction will get to work in September of this year. The list of pilot corporations will be defined in May, 2018.
For implementation of new technologies the Ministry of Economic Development recommends to create separate project offices and competence centers in the companies and corporations. Heads on digital transformation should receive the status of board members of the company, and if necessary and board members or the supervisory board. New directors should submit directly to the president or the CEO of the company.
Heads will be able to approve and other documents of corporation regarding their compliance of digital transformation: long-term programs of development, business plans, programs of the innovative development, marketing programs and programs of development of a human capital.
In Russia powers of heads are determined by digital transformation
At the end of March, 2018 information that the Ministry of Economic Development of the Russian Federation together with Rosatom State Corporation, Rostec Group, ANO Tsifrovaya ekonomika, Centre for Strategic research and ASI prepared the draft of recommendations about functions and powers of heads of the companies on digital transformation (so-called CDO (engl.) appeared — this trigram reduction can be decrypted both as Chief Digital Officer, and as Chief Data Officer). Recommendations were developed according to the actions plan in the "Formation of Research Competences and Scientific and Technology Backlogs" direction of the Digital Economy of the Russian Federation program.
According to the document, it is offered to include in duties of Chief Data Officer: development and strategy implementation of digital transformation, including approval of budgets, formation of architecture and processes of work with data and knowledge, formation and development of a portfolio of digital products, services; formation of corporate competence center in the field of digital technologies; and ensuring leadership in change management, connected with implementation of end-to-end digital technologies for all types of activity.
Also it is recommended to allocate with the CDO status of the board member of the company. However the decision on it should be made taking into account specifics and scales of activity of the company, features of its organization structure.
According to the director of the department of strategic development and innovations of the Ministry of Economic Development of the Russian Federation Artem Shadrin, it is important that CDO directly submitted to the CEO as he should solve a strategic problem and to be responsible for digital transformation of all divisions — from HR to production.
| | Depending on the level of a digital maturity of the company the functionality of CDO is transformed from problems of automation — i.e. a role, close to the Chief information officer — to function of implementation and use of the new business models based on data as a new company asset — the director of the Personnel and Education direction of ANO Tsifrovaya ekonomika Andrey Selsky noted. | |
The document was submitted for discussion at a meeting on March 27 in ANO Tsifrovaya ekonomika in whom representatives of MTS, Mail.ru, the Russian Railway, Sberbank, VTB, Rosatom, Rostec, MShU "Skolkovo" and some other the companies and scientific communities took part. Participants of discussion supported the offered recommendations, having noted at the same time need of introduction of some amendments.
Meanwhile, the draft document assumes determination in April, 2018 of pilot state corporations for implementation of recommendations and also entering into the Government of drafts of directives on formation in the pilot companies of structural division on digital transformation. In June, 2018 it is going to create requirements to CDO which purpose is planned for September, 2018.
It is supposed to sum up the results of a pilot project in March, 2019 then recommendations will be finished and submitted in the Government for approval and further implementation in the companies of digital economy.[4]
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
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