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THE CDO SURVIVAL GUIDE
EMBRACE COMPLEXITY, DELIVER VALUE
Chief Data Officers are ultimately judged on the business outcomes they deliver.
But with the shortest average tenure of any role in the C-suite, it’s crucial
for CDOs to understand and put into action concrete measures that deliver value
to the business.
So, how can CDOs actually deliver against this fairly open-ended objective? What
are the general areas worth prioritizing regardless of how value will be
realized? How much time, money, and effort should be spent on different areas in
pursuit of delivering value? Where should a CDO focus if they are to survive in
their role?
The answers to these questions are highly dependent on the context of the
environment in which the CDO is operating. Consider the impact that any of the
following would have on the needs and priorities of a CDO:
1. Technology: The tools and systems used to collect, store, process, and
analyze data.
2. Legacy: The existing data assets and historical data practices within the
organization — and what this means for quality, accessibility, and
compliance.
3. Regulation: Understanding relevant regulations, implementing necessary
controls, and overseeing data privacy practices to mitigate legal risks.
4. Corporate Structure: How does this impact data governance and ownership?
5. Competency: The skills and expertise of the workforce in handling and
deriving insights from data.
6. Culture: Attitudes, beliefs, and practices related to data.
This white paper provides a view on what are likely to be the common truths for
many CDOs and practical guidance on how to prioritize capabilities that are
strategically important — while also addressing tactical needs.
Large organizations have the most to gain from getting it right. They tend to
have very large data footprints, extensive commercial ecosystems, and expansive
data investments that need to demonstrate a financial return.
CONTEXT IS KING
CDOs will already understand the nuances of those six areas in the context of
their business. So rather than delve into them in detail, let’s instead
acknowledge that any of these in isolation generate complexity through their
diversity.
CDOs must contend with diversity of the data itself, the users they need to
serve, the technologies involved, and the organizational boundaries they need to
cross:
* Data: Quality, timeliness, format, structure, location, update frequency,
governance, etc.
* Users: Data scientists, analysts, engineers, domain experts, business
leaders, data product managers, legal, compliance, etc.
* Technology: Databases, source systems, file storage, cloud storage, data
lakes, data warehouses, etc.
* Boundaries: Teams, departments, legal entities, jurisdictions, partners,
customers, suppliers, etc.
Much of the focus for solving complexity has been placed on technology. The
reality is that no single technology can service the diversity of data and users
at play or effectively transcend organizational boundaries. Perversely, efforts
to remove complexity have resulted in further compounding the issue. The primary
example of this has been the push towards data centralization. This approach has
been criticized for offering a solution aligned to — and dependent on — a
specific technology provider. It’s also incredibly expensive.
More recently, federated and decentralized data architectures like data fabric
and data mesh have gained support in trying to address complexity rather than
remove it. However, these approaches have been criticized for lacking tangible
recommendations, leaving much to the would-be implementer to navigate and solve.
Additionally, much of the technology that would be required to make that a
reality at scale, and across complex environments, is nascent and continues to
evolve. Consequently, most organizations already have a hybrid architecture and
will continue to have one regardless of their current preference.
Let’s start by exploring the challenges created by the diversity of data, users,
technology, and organizational boundaries and considering some practical
solutions…
For access to the full CDO Survival Guide, fill in the form.
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