In A Data-Driven Business World, Organizations Are Still Unclear On Its Role

Just a few decades ago, working with data was a back-office function. Today, data helps drive organizational innovation, strategy and success. This has been accelerated by digitalization, AI and analytics. According to Gartner, 25% of traditional large enterprise CIOs will be responsible for digital business operations. #InWithTheNew

Reportedly, in 2023, around 83% of companies claim to have appointed a CDO/CDAO (Chief Data Officer/ Chief Data & Analytics Officer) to drive their data strategy. This is an increase from just 12% in 2012. Additionally, 70% of these executives report directly to the top C-suite executives (President, CEO, COO and so on). 

Companies are now harnessing the power of data technologies and data management tools as well as structuring internal teams to create better data products. According to Harvard Business Review, this reduces the data implementation time by up to 90% in new use cases and reduces costs, risks and the burden of data governance.

According to Grace Lee, Sr. VP and CDAO of Scotiabank, “Just as the CFO is responsible for the flow of money through an organization, the CDO job is equally foundational, responsible for creating the free flow of information across the company, making sure that it's accessible, it's safe, it's used ethically, and it's well protected.”


However, despite digitalization, technological advances and the availability of dedicated software, enterprises face challenges in becoming data-driven. 

Despite 92% of companies claiming to receive returns on data and AI investments, only 40% noticed success with the CDO role in their organization. Furthermore, 62% of data leaders feel their roles are misunderstood. According to an MIT report, only half of Fortune 1000 companies believe their data leaders produce innovation using data, while 25% feel there’s no way to determine its accountability. 

Additionally, the average tenure of data leaders (2.6 years) is significantly less than CEOs (7 years) and CIOs (4.5 years). Reportedly, this hampers the building of meaningful structures and affects related functions and executives, making the organization’s data goals tougher to achieve. 

According to DeWayne Griffin, VP and CDO of State Farm, “Many organizations just jump at the excitement of announcing a new chief data officer, but there aren’t clear expectations or the desired delivery of value to be created from that role. You can get caught in a five-year success journey, or you can get pulled into delivering value in the next 12 months.”


Ultimately, it’s believed that this has led to nearly 75% of organizations failing to become data-driven firms. Essentially, data leaders must create visible value for their organizations quickly when adopting data-centered strategies. 

What do you think of the importance of data in an organization’s strategy? Do you think data leaders should be given longer tenures to produce results? Let us know in the comments below!