A new IBM Institute for Business Value (IBV) study has now found that the appointment of a CDO–along with a robust digital transformation program–is strongly correlated with stronger corporate financial performance.
IBM IBV surveyed more than 1,500 business executives in 23 countries and across eighteen industries, of which 750 were CDOs. Based on our analysis, we have created a framework to determine under what circumstances it makes sense to appoint a CDO, and if a CDO is appointed, the set of CDO characteristics and responsibilities that are most likely to yield maximum business benefits and returns.
The analysis indicates top CDOs’ strongest characteristic is actually business strategy, not technology. The data indicates there is a higher positive financial impact when a CDO reports to the CIO—not when they report to a CEO
Top CDOs take a balanced approach toward transformation. They seem to be evolutionaries and not revolutionaries.
The study found that, contrary to conventional expectations, CDOs most valuable skill could well be their ability to think and act strategically.
