February 8, 2023

SalaryGraph

Earn Nicely, Spend Wisely

Annual Data And Analytics Global Leadership Survey Highlights Corporate Business Challenges, And Opportunities For Future Progress

7 min read

Investments in data and analytics initiatives are greater than ever, but progress is slower than expected for leading global companies. Firms are acknowledging that imbedding data and analytics capabilities to transform their business activities will take time. Change is never easy. Transformational changes unfold over years, even decades. These are primary findings of the annual data and analytics executive leadership survey, published this week, and conducted by NewVantage Partners, a strategic advisory firm to Fortune 1000 companies, and now a division of Paris-based global consultancy Wavestone.

2023 marks the 11th edition of this C-Executive survey, which was first published in 2012. Participants in this year’s survey comprised data executives who served in CDO, CDAO, and other executive data leadership positions with 116 Fortune 1000 companies and leading global companies and organizations during 2022. Of this year’s survey participants, 84.6% of respondents held the role of Chief Data Officer, Chief Data & Analytics Officer, or the most senior data and analytics leadership title within their company. Industries represented in the survey range from consumer goods and retail leaders to major financial services providers, healthcare and life sciences companies, and leaders in media, tech, entertainment, airlines, manufacturing, professional sports, and government. Key findings are as follows:

ADVERTISEMENT

When it Comes to Data and Analytics, Progress Comes Slowly

Organizations continue to invest in data and analytics capabilities according to the survey, with 87.8% of respondents reporting an increase in their corporate data and analytics investments during 2022. Even though 91.9% of companies report that they are now delivering some levels of business value from data investments, firms recognize that becoming data-driven and building a data culture are aspirational objectives, and most organizations continue to struggle to make substantive progress toward achieving these outcomes, as illustrated in Exhibit 1.

Exhibit 1

Notable findings, as shown in Exhibit 1, indicate that:

  • Less than half of organizations – 40.8% — report that they are competing on analytics.
  • Only 39.5% of companies say they are managing data as a business asset.
  • A meager 23.9% of companies report that they have created a data-driven organization.
  • A dismal 20.6% of organizations state they have established a data culture.

ADVERTISEMENT

The data suggest that there continues to be a gap between company’s long-term data and analytics goals and year-to-year progress. This underscores the challenges that companies continue to face when it comes to maximizing the business value of their data and analytics investments.

For too many companies, the pattern appears to remain the same, with negligible substantive progress against these major goals from year to year. The data provided by these firms suggests that becoming data-driven is hard work, and for the vast majority of companies, it is a journey that companies appear to have resigned themselves to, recognizing that progress will play out over years or well into this decade.

Changing Corporate Culture Remains the Greatest Challenge

For leading corporations, cultural factors once again are understood to be the greatest barrier to delivering business value from data investments. As shown in Exhibit 2, 79.8% of data and analytics leaders identify cultural issues —- organizational receptivity to change, changes to organizational processes, people and skills, organizational alignment, communications — as the greatest barriers to the business transformation required to fully maximize their data and analytics investments. The survey shows that change is seldom easy, and organizational transformation is especially complex and difficult.

ADVERTISEMENT

Exhibit 2

The implication of these findings for major corporations are significant. The findings tell us that companies must remain steadfast in their data and analytics commitments, persistent and resilient in their efforts, and must accept that data-driven business transformation will take time and sustained effort over a period of years.

The lament, “Oh, not another data project!”, needs to be reframed in terms of what have we learned, what do we really need, how can we ensure that our data and analytics investments are tied to delivering business value at each stage of the process, and how can we avoid investing in data and analytics capabilities just for the sake of investment, if they are not linked to delivery of business value.

ADVERTISEMENT

Data leaders and business leaders need to establish trust as the foundation for organizational transformation, and the foundation upon which data and analytics are integrated into business processes throughout any data-driven organization.

Data Leadership Remains a Work in Progress

We are entering into the 2nd decade since data leadership roles such as the Chief Data Officer were first established and began to become widely adopted by global companies across many industries. In this year’s survey, 82.6% of organizations report having now appointed a CDO/CDAO, a dramatic increase from the insignificant 12.0% of organizations that had appointed a CDO/CDAO when the survey was first conducted in 2012. As illustrated in Exhibit 3, this reflects the trend to consensus adoption of the CDO/CDAO role across organization and across industries.

Exhibit 3

ADVERTISEMENT

Unfortunately, widespread adoption of the CDA/CDAO role has not translated into immediate business success. Turnover in corporate data and analytics leadership roles remains high. As shown in Exhibit 4, just 40.5% of companies report that the CDO/CDAO role is well understood within their organizations, and only 35.5% of companies stated that the CDO/CDAO role is successful and well-established, an 11.6% decline in organizational satisfaction from last year.

These findings point to a glaring gap and misalignment between corporate expectations and business results. The results reflect both the relative recency and organizational immaturity of the Chief Data Officer and Chief Data and Analytics Officer roles, as well as highlighting a lack of organizational consensus and lack of clear expectations for the CDO/CDAO function.

Exhibit 4

ADVERTISEMENT

Jeremy Wyatt, a U.K. based specialist in recruiting for corporate data and executive leaders, posted a fictitious but highly ironic Chief Data Officer recruitment listing in 2022, noting that an unnamed firm was seeking “a figurehead Chief Data Officer who can talk a great game to the board and/or stakeholders”. The fictional job description further read as follow, “On arrival in your new role you will find the following:

  • An organization with no commitment to change
  • Resistance at every turn
  • No technology or hiring budget available
  • Reporting into the CIO.”

Sound familiar? Cruel, but in many respects all too true? Let that sink in.

Companies Have Yet to Rally Around Data Ethics

While companies seek to stabilize the CDO/CDAO role and seek to ensure that investments in data and analytics yield business outcomes, data executives once again report that companies continue to fall short in their attention and commitment to data ethics policies and practices.

ADVERTISEMENT

As illustrated in Exhibit 5, data ethics remain an issue of concern for data leaders, with just 23.8% of companies reporting they are doing enough to ensure responsible and ethical use of data within their organizations and the industry.

Exhibit 5

Perhaps 2023 will be the year that a growing number of organizations will begin to think through what ethical data use means, and perhaps define leadership roles where data ethics is a named responsibility. A few organizations, notably Mastercard, Scotia Bank, and Capital One have established roles of this nature, but this evidently continues to remain a lower priority for most major corporations.

ADVERTISEMENT

Final Reflections and Opportunities for Future Progress

This year’s survey was characterized by greater participation across industries, and greater participation from global brands and internationally based businesses than ever, as new CDO/CDAO communities emerge in Europe. Asia/Pacific, Africa, and Latin America. 2023 marked the launch of new or expanded CDO/CDAO communities and leadership events in Europe, Asia/Pacific, Africa, and Latin America. One thing that is clear is that the data and analytics community is increasingly a global community.

As we look at the prospects for data leadership roles in 2023, there are some signs of hopeful progress. One example is the evolution in organizational reporting relationships, evidenced by the 43.3% of CDO/CDAOs who now report to the President/CEO or COO of their company, a further step toward having a seat at the table. In addition, 55.6% of CDO/CDAOs are now reporting to a business rather than technology function.

According to the survey, just 27.4% still report to the CIO. The survey also found that the CDO/CDAO role is evolving and maturing as organizations strive to better align responsibilities to deliver business value from their data investments. Analytics is now formally a part of the CDO/CDAO role at 69.4% of organizations.

ADVERTISEMENT

These developments in CDO/CDAO responsibilities and reporting relationships reflect an evolving but important shift in corporate perceptions of the business value of data and analytics, and how the data and analytics leadership role is perceived. Companies have undertaken an alignment in organizational reporting responsibilities with the goal of ensuring greater business value from the CDO/CDAO role. It is also a sign of hope that 70.9% of CDO/CDAO and data leaders report that their firms are receptive to change and organizational transformation.

As companies continue to struggle to optimize their investments in data and analytics, it is clear that there is abundant opportunity, and with that comes hope for progress and improvement. Data continues to grow – in size, complexity, and availability. Companies will continue to invest in making use of data in all areas of their business – to gain insight, to understand customers, to serve their clients better, to differentiate themselves from competitors.

Delivering business value from data investments will continue to be the single greatest benchmark for measuring success. After all, if companies are not delivering business value from their data investments, what have we accomplished, why are we continuing to invest, and what do we need to be doing as data and analytics, and as business leaders, to fix this?

ADVERTISEMENT

salarygraph.com All rights reserved. | Newsphere by AF themes.