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Rise of CDO creates threats, opportunities for CIOs
By David Weldon
The rise of the chief digital officer is both creating a threat to the job of the CIO and creating a potential new career path opportunity. That is the consensus of some recent articles on the subject of the chief digital officer role, which is gaining momentum in a growing number of organizations.
According to the article CDOs are reaching new heights--and quickly, in the MIT Sloan Management Review, there were approximately 75 chief digital officers in 2011.
That number has grown steadily, and the Sloan Review estimates there will be approximately 500 by the end of this year. "There are at least seven recent moves by a chief digital officer (CDO) into top management slots," Michael Fitzgerald writes at the MIT Sloan Management Review blog.
"Mostly, people shift from one company to the next, a la Michael Bloom, who was CDO at Wenner Media and is now the CEO at Guardian News and Media, NA, or David Cautin, the former CDO at NYSE Euronext, now CEO at kgb, a directory service company. People also move up the ladder in their own company, like Paul Gunning, who was a chief digital officer at Tribal DDB and global CDO for DDB and is now the CEO of DDB Chicago." Fitzgerald quotes David Mathison, founder of the Chief Digital Officer Club, as saying.
Mathison says chief digital officers can be found in every industry now. He also notes that despite the title implications, the CDO position is a business focused post, not a technical one. Enterprising CIO also took up discussion of the CDO last week.
"As more companies invest in enterprise-wide digital transformation, they're creating CDO positions that can be looked at as possible lateral moves for CIOs looking to broaden their resumes to support the case for eventual promotion to CEO jobs, or as threats to existing CIOs as new executives are added to focus on enterprise-wide governance and the utilization of information as an asset," Enterprising CIO notes.
Still, the role of CDO may not be a permanent one at many organizations. Many firms are seeking an executive to help lead the transition into the digital age, the Enterprising CIO article explains.
In those cases, the CDO would be responsible for strategy around social media, mobile technology, big data and analytics, all of the current hot button topics in IT. But over time, these responsibilities would more than likely evolve into further responsibilities of the existing CIO, the Sloan Review article says. Either way, demand for CDOs is expected to continue, according to Gartner, which predicts that by 2015, 25 percent of companies will have established a CDO role. The Sloan article concludes that things will only look up for CDOs in the meantime.
"These people--if they are successful--will probably be running the show in three to five years. I've been surprised at how quickly it's happening," Mathison predicts.
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