With data being touted as the new oil, organisations need Chief Data Officers to build the infrastructure required to get the ‘oil’ into the hands of consumers. Eoin O’Reilly explains why
Chief Data Officers (CDOs) can be leaders, creating new ways to unlock the value of data, building the right foundations and infrastructure, and using insights to drive businesses forward. Here is an overview of the work CDOs do and its place in the wider organisation.
A strategic value driver
According to research conducted with data leaders for EY’s CDO Report 2022 on the Emerging Role of the Chief Data Officer in Ireland, data is now recognised as a foundational asset for every business, and Irish organisations will require dedicated senior executives to manage this asset.
The rise in both the volume and value of data now being created has led to the emergence of a new senior executive role whose responsibility is to maximise and protect the value of an organisation's information.
The need for the CDO has gained widespread acceptance as businesses turn to data to support informed decisions, guide strategy, and deliver competitive advantage.
CDO and CTO
The number of businesses led by US corporations hiring CDOs is growing rapidly. The EY Ireland report shows that the organisations with the most successful appointments tend to have a clear view of the interdependency between the role of the CDO and that of the Chief Technology Officer (CTO).
These organisations have come to the correct conclusion that the roles are so interdependent that the CDO can't succeed without the right technology and platforms to capture, orchestrate and manage data. The CTO needs high-quality data to feed into those digital platforms.
It is argued that the roles are so mutually dependent that neither can succeed if they don't collaborate. The data collected by core digital platforms can be almost valueless without a CDO.
Conversely, brilliant insights could be left unactioned if they are not put in the hands of the right people in the right place at the right time.
C-suite role
As a result of the greater buy-in to the value of data on the part of CEOs and C-suites, all the executives interviewed for EY Ireland’s CDO report believe that the CDO plays a highly strategic role in Irish organisations, and that the importance of the position is growing. It’s not surprising, therefore, that demand to include the CDO in the C-suite is growing.
Data reporting
Focusing entirely on the C-suite may be missing the point, however. The more pressing issue here is the reporting line.
The CDO can ensure that the data ‘agenda’ doesn't get buried under other layers of organisational red tape, and that it is communicated with clarity to the right people at the right time, thereby delivering long-term value for the organisation.
An effective CDO
The point has now been reached where organisations can no longer afford to be without a CDO if they want to maximise the value of their data as a decision support tool and competitive differentiator.
The priority from here should be ensuring that the CDO is given the resources and seniority to execute the role effectively.
Eoin O'Reilly is Partner, Head of Data and Analytics at EY Ireland