Chief Digital Officer (CDO) role has been gaining widespread acceptance across organizations. The requirement for the position is based on an organizations need for digital transformation, bringing in a cultural shift – making digital integral to business strategy. In the short run, the position is expected to enable digital transformation towards bringing in efficiency in business processes to be able to create an agile, nimble and responsive organisation.
At times, the position of a CDO sees an overlap with the CTO or CIO roles depending on the business. The position may also be seen by some businesses as a one time activity – focussed on transformation. Over a period of time the priority of the position is to enable an organization-wide culture shift to a digital mindset. However, the increasing relevance of a CDO position is still being debated and to put an end to the debate, MindTree recently published its findings from their survey about the “relevance and staying power of the Chief Digital Officer (CDO) position”.
Contrary to a widespread belief that the CDO position has a short shelf-life, an overwhelming majority of business and IT professionals participating in Mindtree’s survey see their organization’s CDO as an effective change agent and champion for achieving digital transformation and delivering a customer benefit.
As per the survey findings, the CDO position has been effective in championing many business-driving digital initiatives, such as giving customers the seamless digital experiences (27%) and creating new business models (20%).
Some key findings:
1. The CDO role has a clear purpose and is gaining relevance
Today’s business and IT professionals see a clear need for the continuance of the CDO position, with 74% of respondents stating that their organization’s CDO has clearly defined responsibilities and 81% agreeing that these responsibilities are differentiated enough that a dedicated CDO position is needed. Business and IT professionals believe that the CDO role is becoming even more relevant compared to when it was first created (76%), demonstrating a clear mandate for the CDO to accomplish his or her digital objectives.
2. CDOs understand technology and digital strategies better
Business and IT leaders named a deep understanding of technology (61%) and the ability to execute digital strategies (53%) as their CDO’s main skills. Almost 70% of respondents said their CDO comes from an IT background, suggesting that while many CDOs possess a good combination of technology understanding and “soft skills,” they may have less visibility into or are still acquiring an understanding of how parts of the business function. 84% of respondents in organizations whose CDO came from an IT background said their company had made “significant” digital progress since the CDO role was created, compared to 73% who come from organizations with a CDO having a non-IT, business background, answering the same.
3. Resistance to change, talent gap – CDOs key challenges
About a third of respondents (32%) named change-resistant culture as the biggest obstacle CDO’s face in making greater progress. Relatedly, “changing the culture to iterate faster” is the lowest ranked accomplishment by CDOs. When asked what the CDO needs most in order to be successful with digitizing the business, 38% of respondents said it will require more collaboration across business units, combined with an infusion of new talent with skills aligned to in-demand technologies.
*Mindtree’s survey included data from 323 global business and IT professionals in the U.S. and U.K who work under a CDO. These professionals play a large role in executing on the vision of the CDO and have a valuable perspective about the effectiveness of the CDO as a leader.* Source:Mindtree
1 comment for “Challenges faced by Chief Digital Officers; resistance to change, talent gap”