Gartner Inc.’s latest research on the rapidly evolving role of the chief data officer finds that the job is gaining traction in global enterprises and is increasingly driving their path toward digital transformation.

The survey of 287 CDOs, chief analytics officers and other high-level data and analytics leaders from around the world found that the CDO position is rapidly evolving from its initial tactical focus on data governance, data quality and compliance to strategic outcomes like building a more data-driven culture and developing new revenue sources.

For the first time in the three years that the annual study has been conducted, more than half of CDOs said they report directly to a top C-level business leader, while 23 percent report to the chief information officer. “By 2021, the office of the CDO will be seen as a mission-critical function comparable to IT, business operations, human resources and finance in 75 percent of large enterprises,” Gartner said.

Gathering momentum

The report validates research Gartner released this summer, as well as anecdotal evidence presented by attendees at the 2017 MIT Chief Data Officer and Information Quality Symposium. Particularly impressive is the speed with which the CDO function has gained traction. In 2010, Gartner counted just 15 executives globally with that title.

Today, the number exceeds 4,000, said Mario Faria, head of the office of the CDO at Gartner. “We’re forecasting that by end of 2019, 90 percent of global organizations will have a CDO,” he said. “By 2021, we expect the office of the CDO will be as mission-critical as finance, human resources and other support services.”

And CDOs are getting more resources with which to do their work. The percentage of organizations implementing an “office of the CDO” more than doubled this year, to 47 percent, from 23 percent in 2016. Many organizations initially defined the CDO as an individual contributor role, but “that didn’t work in a majority of cases,” Faria said. “In order for the role to succeed, they need a budget and staff.”

The average CDO office budget grew 23 percent year-over-year to $8 million, and 15 percent of respondents said their budgets exceed $20 million, more than double the 2016 percentage. Faria said three-quarters of the organizations Gartner contacted have already implemented an organizational infrastructure around the CDO role.

P&L responsibility

Along with organizational evolution, CDOs have seen their jobs expand strategically. More than a third of those surveyed have some level of profit-and-loss responsibility, meaning that their activities are tied to specific business results. More than 70 percent say they are consulted as thought leaders on emerging digital models, 60 percent assess external opportunities and threats and 77 percent are developing new tactics to compete with data. More than a third say revenue growth is one of their top three measures of success. “CDOs are gaining responsibility inside their organizations, getting bigger budgets, growing staff and becoming perceived as mission-critical,” Faria said.

And they’re partnering with information technology departments. Despite some initial fears that CDOs and chief information officers would invariably lock horns, Gartner researchers are finding that the evolving relationship is mostly positive. “CIOs completely understand that CDOs should be one of their most important partners,” Faria said. “CDOs understand that you need infrastructure, vendor management and a robust technology environment, and that IT is the best organization to provide that. In the best companies, the responsibilities are very clear.”

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