Enterprises across the globe are waking up to the fact that data is an asset that requires its own strategy. Those that treat it as such are now seeing substantial returns on their investments.
Banorte CAO Jose A Murillo is one of the most successful data leaders in the world today. Since moving into the private sector from Banco De Mexico six years ago, he’s built an analytics unit that has been instrumental in making Banorte Mexico’s most profitable financial institution.
“By last year we’d made 200 times our cost,” he explains. “To 2018, the analytics business unit yielded more than $2 billion in profits for the bank.”
Direct-to-consumer company Publishers Clearing House also relies heavily on data and analytics to drive opportunities and growth. Ash Dhupar, the company’s CAO, says just one of its recommendation algorithms accounts for 43% of the company’s e-commerce sales.
“We run about 500+ algorithms on a regular basis to personalize and enhance the customer experience”Ash Dhupar, CAO, Publishers Clearing House
In the charity sector, Rising Stars Foundation has developed a program which has been shown to improve a child’s SAT score by 107 points on average using an algorithm it has developed to measure ‘grit’.
“Grit is a person’s ability to overcome negative emotions to achieve their goals,” explains Larry Shiller, CDO at Rising Stars Foundation. “Our goals at the highest level were to really maximize the value of the information we had to support the corporate objectives.”
Data has been on the corporate agenda for at least a decade. But these stories show what’s now possible, thanks in part to the recent explosion in data availability and plummeting processing and storage costs.
From predictive machinery maintenance to fraud detection, supply chain optimization and beyond, the possibilities in 2019 are almost limitless.
As a result, data leaders are increasingly involved in enterprise decision making at a strategic level. One study from The Economist found that 88% of executives believe data is ‘very important’ to the running of their organizations, with 59% describing it as ‘vital’.
The Rise of Chief Data Officer 4.0
Data strategy’s role in enterprise organizations has changed so radically in recent years, Gartner believes a whole new class of Chief Data Officer has evolved into existence.
CDO 1.0 focused on data management, CDO 2.0 started to embrace analytics and CDO 3.0 led and participated in digital transformation.
But now, a whole new class of CDO is starting to emerge that focuses on developing new products for their organizations using the most innovative technology and processes available to them.
“We believe this is the rise of a new type of leader,” says Mario Faria, VP and Program Director at the Gartner Research Board. “CDO 4.0.”
“Historically, it’s been about, ‘How do you bring greater value to a company’s data?’” Shiller explains. “Gartner’s synthesis is that CDOs are now much more directly involved in revenue generation and product generation.
“I think that’s pretty new and not common.”
“The role, how it stands now versus where it used to be five years ago, is key and central to finding opportunities for growth,” adds Dhupar. “It’s about, ‘How do we find and unleash opportunities using data?’”
While this new breed of CDO is still quite rare, it shows that companies now understand the value of data and are hunting for new ways to harness its power. With enterprises setting their sights on increasingly ambitious goals, the need for strong data and analytics leadership has never been clearer.
Organizations at all stages of digital transformation must continually review their data requirements. Only then, can they create data strategies to drive internal transformation and maximize their data program’s ROI.
Revolutionizing Your Company’s Data Strategy
To discover how data and analytics leaders can create enterprise data strategies that effectively drive company revenue, we interviewed three of the renowned data leaders that will speak at this year’s CDAO Fall conference. Then, we compiled our findings into this exclusive editorial report.
It highlights four key stumbling blocks that can derail an organization’s data transformation. Then, it explores what business leaders can do to revolutionize their data and analytics strategies and achieve their business goals.