the role of chief digital officer
TRANSCRIPT
The Role of Chief Digital Officer @ DQ Live 2015
Event by Cyber Media Group – Publishers of Dataquest Magazine
Ajay Chhabra
0091-8130940808
Agenda - The role of Chief Digital Officer
The Chief Digital Officer is tasked with providing the brainpower behind designing a digital enterprise and the horsepower to pull together various digital initiatives. In many cases, the CIO has a chance to step into the role of a CDO and in others, the CIO has to be the closest ally of the CDO. The session would highlight the role of the CDO and its criticality in the success of creating a digital enterprise.
Some tentative points to be discussed include:
* The need for a CDO
* Skillsets needed for a CIO to step into a CDO role
* How do you see the CDO role panning out in different sectors
* Future - Will CDO role merge into CIO, the CIO merging into CDO or will they remain distinct?
Meet Few Chief Digital Officers
Rachel HaotChief Digital Officer and Deputy Secretary of Technology New York State.
http://www.theverge.com/2013/12/18/5225700/new-york-chief-digital-officer-rachel-haot-joins-state-governor
Teddy GoffDigital DirectorObama for President 2012 Campaign
http://ideas.time.com/2013/12/06/these-are-the-30-people-under-30-changing-the-world/slide/teddy-goff/
Stephen GillettCOO, SymantecPast:President Digital, Marketing & Operations, Best BuyChief Information Officer, GM Digital Ventures, Starbucks
http://www.forbes.com/sites/peterhigh/2013/07/15/stephen-gilletts-rise-from-cio-of-starbucks-to-coo-of-symantec/
Atif RafiqSenior Vice President and Global Digital Officer McDonald’s
http://adage.com/article/news/mcdonald-s-names-atif-rafiq-chief-digital-officer/244556/
Arvind GuptaNational Head IT & DigitalBJPIIT BHU AlumunusDigital Man behind Modi’s Campaign
The need for a CDO
The need for Digital
MIT Digital Transformation Study, 2013 as quoted by Adjuvi LLC…
The need for CDO – Trends worth watching
• Industrial age model of the enterprise is in decline
• Speed at which the enterprise data doubles is reducing
• Digital natives have increased in the work-force
• Technology is destroying companies in most industries • What digital did to print publishing industry everyone is aware of the same
• Touch UI, App Stores, Smart mobile / tablet, cloud, social business, consumer IT, Internet of Things & big data
• Core focus of IT is moving from systems of record to Systems of Engagement
• Whole supply chain would get revamped or transformed with the invent of 3D printing
• Investment in design paid apple to have more than $170b in cash surplus
• Consumers are going to play a far bigger and better role in Social Economy
• Role of intermediaries would be limited or diminish
• Technology would enable better industrial productivity
• Pressure on IT to become profit generator and not act like a cost center
Gartner predictions: Does your business need a CDO?- Gartnerby 2015 25% Enterprises would have a CDO…By 2020 90% of tech budgets will be outside of IT (cloud, BYOD, big data)
Russell Reynolds Sirach for CDO is Europe and US have rose by 1/3rd in last two/one year and the average salary for CDOs have doubled in the last three years
Wired.com - IS 2014 THE YEAR OF THE CHIEF DIGITAL OFFICER?Some 70 percent of CMOs say they already have a chief marketing technologist who reports to them, and they admit they’d be lost without this kind of support
The data pointsMultiple Sources
http://www.gartner.com/newsroom/id/2659215
http://www.russellreynolds.com/content/2014-digital-board-director-study
CDOs worldwide in 2012: 225 CDOs worldwide in 2013: 448 CDOs worldwide in 2014: 1000+ Source: The CDO Club
CDO Average Salary:USD 250K to USD750KStarts as low as from USD 89K
A recent survey from Accenture reports that CMOs don’t think much of their technology counterparts, with 38 percent of CMOs saying that IT deliberately keeps them out of the loop, and 35 percent grousing that marketing concerns aren’t a high enough priority.
31 percent of CIOs saying their marketing peers are ill-informed about tech, and 36 percent steamed because marketing routinely bypasses them for solutions, going to outside vendors and ad agencies without first checking for internal solutions.
The DebatePosition of PowerBudget Distribution
• One who does like to work in a cabin but prefers war rooms • One who has got the respect of the board room • One who is authentic and Trusted advisor • One who leads digital transformation in the organization • Decoding the complexity in digital and explaining to the company board and taking them on board • Who builds Overall digital strategy for the brand and the corporate • He should be able to make best use of free and paid content for consumers and clients and provide
unique customer experience • One who can establish balance between creativity and data• CIO need to re-invent or else their job has been outsourced• Majority of CDOs are not CIOs in their careers – David Mathison - Chief Digital Officer Talent Map: David
Mathison at the CDO Summit (NYC Feb 2013)• He who has the capabilities to reinvent the technology platform• Creating disruptive apps on mobile and other screens for building new revenue sources • A CDO needs, among other things, a background that includes legal and compliance or risk management
responsibilities, • an understanding of “data as an asset,” a solid background in the industry they work in, • and knowledge of the tools and techniques of data modelling.• Might have communications, creativity, innovation and not necessarily technology as the degree
Key Traits of a CDO
http://blogs.gartner.com/mark_mcdonald/2013/03/12/chief-digital-officer-what-type-does-the-organization-need/
Different Type of Chief Digital Officers
CDO Key Role
Chief Digital Officer
Buids Digital Marketing Strategy
Introduces Digital
Business Models
Owns Digital Assets and
data
Creates Digital User experience
Ensures Multi Channel
delivery of content
Transform Business Digitally
Recruits Digital Talent
Reports in to boardrooms
Organization's Expectations from CDO
Beyond the CIO/CMO partnership, The Rise of Chief Digital Officer – Dion Hinchcliffe – Adjuvi LLC
Skillsets needed for a CIO to step into a CDO role
“60% of CIOs believe they should be driving growth and productivity.”Source: Deloitte Global CIO Survey
“Digital leadership is not a replacement or substitute for IT leadership, however: it is an adaptation of business leadership to a digital context. “CIOs do not own the CDO’s responsibilities. CIOs and CDOs should have distinct and separate roles in the digital era, and they will need different skills and capabilities.” said Debra Logan, vice president and Gartner Fellow.”
How do you see the CDO role panning out in different sectors?
CDO’s have been hired in multiple industries
CDO Characteristics in General
• What makes a Super-star CDO• Strategic – focused but change• Executors – deliver results• Committed - thinking long term• Relationship builders - Gets buy-ins• Leaders – respect from board,
juniors, seniors, CEO & Customers• Managers - bring in quality talent • Entrepreneurial – deliver new
business and revenues• Innovators – has transformative,
disruptive vision
Technology LastCustomers First
Chief Digital Officer Talent Map: David Mathison at the CDO Summit (NYC Feb 2013) – YouTube
Future - Will CDO role merge into CIO, the CIO merging into CDO or will they remain distinct?
The word of caution
“CDOs Replace CIOs? I'm Not Buying It -Marketing-minded chief digital officers aren't technical enough to lead the changes that companies need to make. By 2020, chief digital officers will be yesterday's fad, joining the ranks of chief innovation, learning, and culture officers. Sure, a handful of them will still exist, but the CIO -- customer-focused and product-savvy -- will drive the corporate digital agenda in partnership with CEOs, CMOs, CFOs, and other business leaders.Rob Preston - VP and editor in chief of InformationWeek”
http://www.informationweek.com/strategic-cio/digital-business/cdos-replace-cios-im-not-buying-it/a/d-id/1317196
“The CDO is the CMO of the future,” says the Group CMO at a global financial institution. “Marketing will be digitally-led and classical second,” he says, “requiring agility, inclusiveness and the ability to be cross-functional.”
The word of Optimism
“Digital is becoming such an integral part of marketing,” adds the VP of marketing for an outdoor apparel and equipment company. “I could see a Chief Customer Experience Officer owning the entire brand/customer experience 5 years from now.”
Chan Suh @ http://www.wired.com/2014/01/2014-year-chief-digital-officer/
The word of Optimism – CDO is CEO of future
Chief Digital Officer Talent Map: David Mathison at the CDO Summit (NYC Feb 2013) – YouTube
The Journey to Boardrooms
http://www.russellreynolds.com/content/2014-digital-board-director-study
Contact UsAjay Chhabra
Founder & Chief Digital Officer
A3R Digital Private Limited
0091-8130940808
DQ Live 2015 – Highlights on ET Nowhttps://www.youtube.com/watch?v=kmNwYBt3R7U
Fireside chat with Walmart India CIO
https://www.youtube.com/watch?v=bu13kFIVxBA