They dont. These organizations first need to make a convincing and strategic choice to become analytical aware and create a culture of data opportunities. That sounds interesting, but why is that needed?
A data and analytics aware culture is in most businesses not present. Why not? Because revenue and profits are still flowing in at the end of the month and there is no sense of urgency or importance. There is basically no fire to do things differently.
The exact title of this new role is not important like Thomas Davenport is stating: However, I dont want to quibble. I will be happy if any organization creates a senior management role with analytics in it, regardless of the specific title. The perfect analytics title must not be the enemy of the good title.
I am still convinced that this data unawareness is creating an inside way of looking at developments in the market, new wishes from customers and innovations from your competitors. Being data aware means an attitude and openness to learn. Its a company culture of learning and asking the right questions.
On the other hand a CAO can certainly help stimulating this culture of learning and innovation. He (or she) is a person of opportunities, forward-looking, innovative. He is not managing the things as they are nor should he be an expert in executing the company policy.
Creating a culture of analytics is the most important task of the Chief Data Officer. Creating an atmosphere of innovation and experimentation, where deliverables are organic and trial and error is the standard approach. We have to leave the control area of management, where errors will be detected and corrective actions will be taken. With modern analytics we are trying to foresee and predict the errors and other related events.
This new approach of experimentation and being part of an entrepreneurial adventure is very disruptive for the majority of companies. Not all companies are like Google or Amazon and they should not, but they are more and more being part of streams, interactions and logs of data. This data can give them more insight in their customers and how they actually add value to these customers.
Besides the urgency and choice to be more analytical aware, there are more obstacles. Jeff Jonas describes this perfectly : The biggest obstacle preventing companies from taking full advantage of their data is likely outdated information-sharing policies. All too often, each division rigorously guards its information from the other divisions. The consequence of all this information kept in isolation is that organizations miss the obvious. The gold puzzle piece in the left hand is unaware of the red puzzle piece in the right hand. Imagine a large retailer unwittingly hiring people they have previously arrestedat the same store. True story, this really happens.
Without doubt there are loads of opportunities and organizations most likely need this new c-level role, to boost the focus on innovation and data insights, where execution of company policies and doing business as usual, is not bringing the organization in the future.
