Blog > June 2018 > Uncovering the Progress of the CDO 2.0: Top Takeaways

Uncovering the Progress of the CDO 2.0: Top Takeaways

As we enter the fourth Industrial Revolution, the chief data officer (CDO) has evolved from a relatively new executive role to a vital, strategic staple of the C-suite. While CDOs used to operate in a highly compliance-driven world, today’s data landscape requires that they focus their time and budget on leveraging the latest technologies and governance strategies to deliver business-driven benefits. As we move into the era of Governance 2.0, featuring a new approach to data governance and management, CDOs are working not only to optimize data discovery and traceability, but also to meet compliance standards in a time- and cost-effective way — meaning applying automation, machine learning and AI wherever possible. This transition enables organizations to both reduce compliance concerns in the near term and lay the groundwork for business differentiation in the future.

ASG, Wipro and FIMA surveyed a pool of senior data management and governance executives to understand how today’s CDOs are addressing Governance 2.0. According to the survey, 39 percent of CDOs report they are revamping their technology and strategies in order to outpace their competition. Find out which tools and strategies they’re using and how much progress they’ve made in these top four takeaways from the “The 2018 FIMA CDO Study: Uncovering the Progress of the CDO 2.0” survey.

  1. Half of CDOs don’t have the solutions they need to fuel a data governance strategy
To pull ahead of competitors, CDOs must deploy solutions that deliver data governance and inventory; otherwise, they are relying on assumptions about their data, which still seems to be the case for many CDOs. Currently, 50 percent of CDOs admit that they do not have solutions to support data inventory, and 66 percent do not deploy data lineage — meaning they don’t have the ability to know what data they have or understand where data comes from or the transformations it undergoes. While the majority of CDOs have implemented data intelligence solutions to help define and classify data, they have yet to create an accurate picture of where data lies within the organization. Without solutions in place to support that ability, data discovery and traceability can become significant drains on resources.
  1. CDOs use big data differently than other executives
While most data management leaders are using big data in routine reporting (62 percent) and supporting operational processes (60 percent), CDOs are working to leverage it more strategically. 73 percent of CDOs are using advanced analytics projects as the main way to drive value from big data, which is 25 percent more than other data management leaders who are still focused on supporting the tactical elements of their daily data practices. By honing in on advanced analytics, CDOs are breaking down and using high volumes of data to move beyond compliance-centered work — striving to understand which information can add business value, drive efficiency and manage business risk. CDOs are moving in this direction, though respondents still feel they are just starting to unlock the potential of big data across 80 percent of use cases.

  1. CDOs still consider risk management and compliance as top priorities
Sixty-one percent of respondents identified risk data aggregation and record retention mandates for three to five years as primary regulatory concerns within IT. The GDPR was next with 36 percent, which remains consistent with its prevalence in industry dialogue. That said, of the nine regulatory areas listed in the survey, including Sarbanes-Oxley, KYC, FINRA and Dodd-Frank, seven were listed as primary areas of concern by 75 percent of CDOs. While risk management and compliance are key priorities, leading CDOs are moving more of their focus to value creation. Creating a governance platform that simplifies absorption of new regulatory requirements is the key enabler.
  1. CDOs are successfully shifting compliance to a secondary concern
Fifty-five percent of respondents feel they have reached a point where compliance is handled by default, enabling them to focus on data as a key driver for business improvements. This transition is evidenced by the fact that 77 percent of CDOs are only dedicating 25 percent or less of their operating budget to compliance activities — which means they are now able to spend more resources on competitive advantage and analytics. The ability to leverage data for business value brings CDOs one step closer to realizing the Governance 2.0 model.

The digital age is pushing every industry to automate mundane tasks to make room for more strategic, competitive work. The transition to Governance 2.0 is one leg of this shift, and CDOs are powering the movement.

To explore more findings from “The 2018 FIMA CDO Study: Uncovering the Progress of the CDO 2.0,” download the full report here. For more information on the types of solutions CDOs can leverage to maximize their “Governance 2.0” strategies, visit our solutions page.
Posted: 6/26/2018 3:55:06 PM by Ian Rowlands
Filed under :CDO, compliance, data, governance, intelligence