Author: Maggie Walsh
When it comes to C-Suite positions, executives can generally count on the staying power of their position. Most companies will always need a CEO, a CFO, and a CMO. But what about the relatively new Chief Digital Officer (CDO)? Can they count on a tenured spot within the company? The strategy for most CDO positions is a relatively short-term one. Companies expect a CDO to come on board, right the digital ship, and then move those maintenance and update responsibilities to parallel executives, like marketing, technology or information.
A November 2017 study predicted that the CDO will be phased out of most companies by 2025 (gartner.com). That feels counter-intuitive, given how digital-driven life has become in 2018. The reason for the disappearing CDO is twofold. One, a lot of the responsibilities that belong to the CDO are duplicates. Two, the main goal for the CDO is to take a company who is behind in their digital strategy and bring them up to speed. Luxury fashion, for example, is an industry that is notoriously behind the technological times. Luxury has felt somewhat exempt from the digital revolution for all these years. However, they are finally realizing they can no longer hold out, and are modernizing their strategies with the help of CDOs.
In a study conducted by PwC, only 19% of organizations reported having a CDO in 2016, and 60% of those CDOs were appointed between 2015 and 2016 (pwc.com). What seems like such a vital piece of a company’s overall health appears to be in the hands of, essentially, temporary employees. The CDO comes in when the digital situation is dire, and they improve the internal and external digital user experience, and move on - acting as digital “fixers”. The CDO of Shiseido succinctly described the purpose of the CDO to Glossy.com, saying, “CDOs are temporary. We are here to inject a new way of working, one that is about ongoing experimentation, trial and error, fail forward, push forward . . . We can be successful in this job if we are out as fast as possible.”
CDOs face the exciting challenge of reviving a company’s digital scope, while maintaining its original DNA. While this can be difficult, it is a high risk/high reward situation - especially in retail, where revamped web sites historically produce a stronger revenue stream, an easy measure of success. Getting there can be difficult, as CDOs often aren’t given their own team, but rely on various marketing or tech employees for strategy execution.
Why do CDOs only exist in a short burst? Why don’t companies want to continue to evolve their digital footprint and experience even after tech mistakes have been corrected? Isn’t there room for a CDO as the importance of user experience, systems, and a company’s digital face continues to grow with the technology available? In order to continue to NOT have a digital problem, it feels essential for companies to keep a CDO who will continue to grow the digital side of the business. I guess we’ll have to wait until 2025 to get the answer to that question.