The Chief Digital Officer: Driving Digital Strategy and Innovation
On June 30, join Donnovan Andrews, Chief Advisor of Digital Media and Innovation, 4As, as he explores the multifaceted role of the Chief Digital Officer––and how this expanding role will drive industry innovation and help transform your business.
2. WHAT IS A CDO?
Digital executives used to be a part of the marketing team; they were
typically tasked with a few projects with the main goal of increasing
sales.
As expectations and digital channels increased, the talent required to
manage and innovate around these channels lead to the rise of the
Chief Digital Officer.
Today, the CDO is someone charged with delivering technology solutions
to: increase revenue; track and analyze customer sentiment /
interaction; enable product development; and introduce strategic
partnerships.
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3. Data
Social
Wearable
Gaming
SaaS
Content
Programmatic
The digital landscape continues to
swell with options to help drive
revenue, capture leads, distribute
content and manage the
customer experience.
WHAT IS FUELING THE NEED?
Display: 350+
Video: 332+
Social: 380+
Content Marketing / Native: 250+
Search: 160+
Mobile: 386+
Commerce: 335+
Marketing Technology: 520+
# of Digital Companies by Category:
Source:
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4. FOUR FOCUS AREAS OF A CDO
There are typically four types /
areas of focus for Chief Digital
Officers within organizations:
These focus areas usually create
four CDO profiles / archetypes…
Revenue
Advocacy
Strategy
Business
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5. OPERATIONAL DRIVERS
CDO– Strategy
CDO– Advocacy
CDO– General Manager
CDO– Revenue / Marketing
REVENUE POLICY
Chief Digital Officers are typically tasked with driving revenue or internal
policy. Revenue-driving CDOs are usually responsible for marketing, general
management or managing customer channels. CDOs who drive policy usually
develop strategy, internal education and, quite often, external partnerships.
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6. THE STRATEGIST
Vitals
Revenue Responsibility
P&L Responsibility
Staff Size
The role of strategic Chief Digital Officer is supported by a small
resource team. The team’s responsible for creating new capabilities
– products as well as enhancing customers’ experiences.
CDOs with strategic focus are typically, but not exclusively, found
within large, established organizations with traditional core business
models and / or products (e.g., magazines, radio or television).
Quite often, the organization relies on this person to introduce ways
of working with technology vendors; and leadership is heavily
reliant on a strategy CDO to be the bridge to the tech community.
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7. THE ADVOCATE
Vitals
Revenue Responsibility
P&L Responsibility
Staff Size
The role of the advocate / evangelist type of CDO is
typically to:
• Drum up attention;
• Gather and distribute external insights;
• Be a representative to the tech community;
• Open client doors at agencies and brands;
• Develop marketplace research; and
• Often be a conduit for business development.
This role is typically aligned with organizational and admin
duties, while reporting to the CMO or CRO.
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8. THE GENERAL MANAGER
The CDO in a general manager role can a take a few different tracks – a
popular one is the transformationalist (a CDO charged with bringing the
existing infrastructure / assets of a traditional business to the digital age).
The second type of general manager CDO is a more ‘executive’ position,
overseeing a large team spanning multiple disciplines – customer relations,
marketing, content, and product development – to support digital
initiatives. This executive CDO often has a vital role communicating with
the board, reports directly to the CEO, and has high levels of P&L, revenue
and management responsibility.
Vitals
Revenue Responsibility
P&L Responsibility
Staff Size
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9. The marketer is likely to be the most popular CDO area of operation.
With companies concerned about staying ahead of trends, someone needs to
be in charge of: deployment and integration across technology platforms;
developing social platforms and protocols; as well as, devising data strategies
and customizing the technology stack.
This operator builds out marketing initiatives, and generates (and qualifies)
leads – while building systems allowing for attribution, and tracking of
Lifetime Value (LTV) and other KPIs tying into marketing initiatives.
Vitals
Revenue Responsibility
P&L Responsibility
Staff Size
THE MARKETER
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11. THE AGENCY CDO
• Design the framework for social, consumer and data platforms
• Educate the organization on the latest technology developments
• Recruit and retain talent with a key focus on digital capabilities
• Create the roadmap for how technology will be used within the
organization
• Interface with client CDO’s to improve workflow and offerings
12. GENERAL DUTIES OF THE CDO
Below are some CDO general duties. Prioritization of these duties should
vary based on an organization’s size, goals, digital footprint and culture.
• Lead implementation of
firm’s long- / short-term
plans in accordance with
its digital strategy
• Ensure company is
appropriately organized
and staffed (has authority
to manage team
development to achieve
approved strategy)
• Ensure expenditures of the
company are within the
authorized annual budget
• Ensure effective internal
controls and management
info systems are in place
• Ensure there are
appropriate systems to
conduct activities lawfully
and ethically
• Ensure company maintains
high standards of corporate
citizenship and social
responsibility wherever it
does business
• Liaise between
management and various
groups within the
organization
• Keep abreast of all
material market
undertakings / industry
activity – relay and
educate various groups
including management
• Build scenario assessments
about how marketplace
changes may affect the
organization – inform
CEO and management
• Provide board with
sufficient info, enabling
directors to form
appropriate judgments
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13. • Expect to see more CDOs reporting directly to CEOs.
• Expect to see the next generation of CEOs to be former CDOs.
• CDO’s will have more extensive interactions with boards of directors.
• Look for heads of marketing and sales (within some organizations) to report to
the CDO.
• By 2016, expect 30% of Fortune 500s to have a CDO – growing to 50% by
year-end 2017.
• The Chief’s primary territory will be North America, but responsibilities will
grow: a CDO will be a global executive position within the next 2 to 3 years.
FUTURE OF THE CDO
Predictions and expectations surrounding the role of the CDO:
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