The CDO Role explained

Description of the Role

A Chief Digital Officer (CDO) is responsible for the digitalization of a company in strategic, operational and technological terms. The CDO is also known as the Chief Digital Officer or Chief Digital Officer. One of the central tasks often is the development of a digital strategy for the company. It is therefore not uncommon for the CDO to also be responsible for implementing a corresponding data or AI strategy, as well as for business intelligence or similar functions. As a result, his or her activities and personnel are usually cross-functional.

Due to their experience and seniority, they have the weight to enter into a dialog with senior management and employees about the change. The focus always is on the future economic effect that the company is aiming for. Thus, the range of tasks can naturally be broad.

Fields of Action

Logically, the range of activities of an (interim) CDO can and must be adjusted, as the role is not a one-size-fits-all solution. It can be flexibly tailored to the respective company. Depending on the maturity of the company and specific challenges, a CDO can work in the following areas, individually or in combination, depending on the company's stage of development and needs:

• ERP and the corresponding customizing
  In many SMEs, the ERP system is the backbone of business processes. A CDO assumes responsibility here and will initiate modernizations or implement integrations with other systems or partners.
  
• Software development and digitalization of processes
  Processes often not only need to be digitalized, but also automated and rethought on the software or user-side. A CDO has the knowledge and experience to set up agile development teams, make make-or-buy decisions and transform processes end-to-end. From procurement to after-sales.
  
• Development and expansion of digital marketing and digital sales
  Digitalization is laying new foundations for how products are marketed and sold. A CDO establishes modern digital marketing strategies, sets up cross-channel campaigns, integrates CRM- and marketing-automation tools and sets up data-based sales processes.
  
• Management of digital projects and innovation programs
  From web shops to platform strategies: a CDO can and must set up company-wide projects and lead them through to implementation. This is not just about technology, but also about change management, communication and cultural anchoring. And often a good project portfolio and appropriate program management.
  
• Responsibility or development of new (digital) business models
  In mature companies, the CDO becomes a strategic driver. CDOs identify innovation potential, validate digital business models and ensure that new ideas can be tested quickly and scaled up if successful. The CDO alleviates internal resistance through well-structured preparation and communication.

The CDO can either have an overarching coordinating effect or manage individual functions on a temporary or permanent basis. This depends on the chosen strategy and the expertise of the existing management staff. It is not uncommon for the CDO to first have to create or improve skills at the working level through internal training or the recruitment of new staff with a digital profile.

Differentiation

The CDO-Role in more mature companies often overlaps with CIO- or CTO-roles, if they exist at all. The CDO's areas of activity and hierarchical position should therefore be carefully clarified in advance. It is often a good idea to define the role of interim CDO in order to be able to adapt it later. In companies where basic digital structures and roles do not exist, a CDO can initially act as an interim CIO or “digital firefighter” and thus ensure stability in IT, e.g. by reorganizing the system landscape, introducing basic tools or hiring competent personnel.

Synopsis

Digital transformations are complex and company-specific. A CDO is often a good central lever to bring personalized orientation, speed and structure into the transition process. When filled on an interim basis, the role unfolds its full potential: as a precisely adjustable, temporary force - from the IT basis to the innovation strategy. For many companies, especially SMEs, establishing a CDO role is a pragmatic and effective way to a competitive future.