As businesses become increasingly data-driven, the use of Big Data and predictive analytics to strengthen fact-based decision-making and to help business leaders to identify and act on emerging trends continues to permeate the enterprise.
Still, research reveals that few companies are exploiting the full opportunities available to them for using data and analytics across a myriad of business and operational applications. For instance, a KPMG survey of 144 CIOs and CFOs finds that fewer than 10% of business leaders believe they’re in a position to make use of information their organizations have on customers’ needs, preferences, and behaviors.
Part of the challenge that many organizations face is the ability to identify the most effective data sets to use. Clearly, companies can benefit from having a data czar who can oversee the collection, management, and distribution of data across the enterprise. But should these responsibilities – along with the ownership and oversight of predictive analytics – fall under the authority of the CIO?
In many organizations, business leaders who are responsible for the performance results of their respective business units believe they are ultimately responsible for the customer and operational data that flows within their sphere of influence. As a result, many of these same business leaders have wrested control of data ownership and the use of predictive analytics within their functional domains.
In other organizations, the position of a Chief Data Officer (CDO) has been created to oversee the Big Data/analytics strategy for the enterprise. In some cases, the CDO reports directly to the CEO. In others, the CDO is a direct report of the CIO.
But this doesn’t necessarily mean that the CDO or the CIO “owns” the data that’s collected and used across the organization. In many cases, they are viewed as stewards of the data where they are responsible for the collection, management, and distribution of data resources.
Meanwhile, many CIOs are building a case for themselves as the marshals for data and analytics management. Big Data management requires a lot of different moving parts – databases, data warehouses, analytics dashboards, and other technologies – all of which have historically been managed and operated by IT. Business and functional leaders typically don’t have the background or experience to manage these assets themselves – unless, of course, they rely on third parties to manage these resources for them.
As I shared in a previous post on the topic, the CIO is responsible for making the business case to the C-suite for investing in effective data strategies and making sure that top executives fully understand the business value of new investments in critical information technologies and data assets.
How do you see it? Should the CIO be responsible for the selection, deployment, and use of predictive analytics across the enterprise in addition to data management? Or should someone else in the organization be held accountable for these assets? Please join the discussion and share your insights with the HMG Strategy CIO Community.