Is it just me, or the C-suite doesn't care about data?
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With my MC Lyon session, I started a series of presentations on what I consider to be faulty assumptions in web analytics. The MC North America session was about how emotions, rather than making decision-making irrational, are essential to get buy-in. This session will be about exploring whether the C-suites are really as supportive of data-informed decision-making as they claim.
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Is it just me, or the C-suite doesn't care about data?
- 1. Is it just me… Alban Gérôme @albangerome MeasureCamp Nordics 6 March 2021 or the C-suite doesn’t care about data?
- 2. Investment in Big Data and AI is increasing Nothing, same or decreasing 8% Increasing 92% @albangerome
- 3. Companies are hiring Chief Data Officers No CDO yet 37% Have a CDO 63% @albangerome
- 4. Quaking in their boots about disruption 2002 First CDO Capital One (1) 2005 Second CDO Yahoo! (1) 2014 15 major corporations have a CDO (3) 2017 6% of top 2500 companies have a CDO (4) 2018 19% of top 2500 (4) 63% overall (2) 2019 90%? (4) 2012 12% of Fortune 1000 have a CDO (2) Sources: 1: Wikipedia 2: NewVantage Partners 3: PwC 4: Gartner @albangerome
- 5. CMOs spend more on tech than CIOs @albangerome Predicted by Gartner in 2012 Became true in 2017 CMOs spend over a quarter on • Big Data • Analytics
- 6. @albangerome What an amazing time to be working in data…
- 7. 72% of the companies have no data culture yet Source: NewVantage Partners (2019) @albangerome
- 8. Only 51% of the C-suite fully supports their organisations’ digital and analytics strategy Source: KPMG (2017) @albangerome
- 9. 25% of organisations feel that their data and analytics maturity has reached a level where it has actually optimised business outcomes Source: Harvard Business Review (2017) @albangerome
- 10. 90% of companies will have a CDO… but half will fail Source: Gartner (2017) @albangerome
- 11. Let’s hear it from a fictional CEO who wanted to remain anonymous @albangerome
- 12. I am a CEO, I hate data, but I can’t tell anyone @albangerome
- 13. I created this company to do things my way @albangerome
- 14. Am I supposed to let data dictate what I do? @albangerome
- 15. Here’s my data strategy… @albangerome
- 16. First, hire a CDO and make data their problem @albangerome
- 17. Then approve all their expense requests @albangerome
- 18. Even encourage all that spending @albangerome
- 19. Six months later, ask the CDO to show you the return for all that spending @albangerome
- 20. You don’t need to be Nostradamus. It’s going to be negative @albangerome
- 21. So as the CEO, it’s my duty to put an end to that spending @albangerome
- 22. But the beauty of that strategy? @albangerome
- 23. Nobody would dare claim… @albangerome
- 24. … that I hate data and never supported it @albangerome
- 25. And my whole C-suite thinks just like me! @albangerome
- 26. Eric Berne and Transactional Analysis Sigrid knows that her husband is thinking about divorcing her Birger claims it’s not true but it is @albangerome
- 27. Eric Berne and Transactional Analysis A divorce judge would see Sigrid as the wronged person A divorce judge would see Birger as a selfish person if he initiates the divorce @albangerome
- 28. Eric Berne and Transactional Analysis Sigrid wants to save their marriage @albangerome
- 29. Eric Berne and Transactional Analysis Sigrid wants to go to a marriage councillor with Birger Birger protests but reluctantly agrees @albangerome
- 30. Eric Berne and Transactional Analysis Birger attends the sessions, but after five sessions, he goes fishing instead @albangerome
- 31. Eric Berne and Transactional Analysis @albangerome Sigrid has no other choice but to file for a divorce Birger claims that he gave marital counselling a shot
- 32. Eric Berne and Transactional Analysis @albangerome The divorce judge sees Sigrid in a bad light The judge is sympathetic of Birger’s plight and recognises his efforts with counselling
- 33. @albangerome Not all C-suites are like this
- 34. @albangerome Not all CDOs, web and digital analysts are good
- 35. @albangerome Why are C-suites so comfortable with this lack of change?
- 36. @albangerome Going all in with digital investment is a bad plan
- 37. @albangerome Iterate and embrace Incremental change
- 39. http://www.albangerome.com @albangerome Tack så mycket Mange tak Syö tak Spis tak Borða tak Thank you!
Editor's Notes
- In 2019 HBR published the results of a survey of 64 C-suite executives on the state of their digital transformation. 92% of the participants revealed that their investments in big data and AI is increasing.
- Capital One hired the first CDO back in 2002. Yahoo! was second in 2005
- 2002 – Capital One appointed Cathryne Clay Doss as the very first CDO 2005 – Yahoo! appointed Usama Fayyad as they first CDO and SVP. He generated half a billion dollars in new revenue using targeted ads at Yahoo! https://en.wikipedia.org/wiki/Chief_data_officer https://www.consultancy.uk/news/3195/only-6percent-of-companies-have-a-chief-data-officer https://www.hrdive.com/news/pwc-19-of-worlds-top-2500-companies-have-cdos/446468/ https://www.alchemer.com/resources/blog/chief-data-officer/ https://www.gartner.com/smarterwithgartner/half-of-cdos-succeed/
- Gartner predicted in 2012 that the CMOs would start spending more on tech than CIOs by 2017. Their prediction turned out to be correct. Perhaps this is due to the fact that CIOs are responsible for support functions generating no revenue of its own, i.e. cost centres. Conversely, CMOs can turn their function into a profit centre. Therefore, it is easier for them to make a business case for data-related tech that has potential for revenue generation. https://www.cmo.com.au/article/612861/gartner-how-cmos-will-spend-more-technology-than-cios-2017/ CDOs are in a similar situation to CMOs, their operations are potential profit centres. The budget of the CDO offices has been increasing, accommodating hiring for STEM graduates for their Big Data operations, but also data tools, and data storage. Interestingly, about 3 in 9 CDOs came from a marketing background vs 1 in 9 from a technical or academic background. That trend has attenuated as Data Science took off but as a result of COVID, web analytics is in demand again and this would favour the marketing-flavoured CDOs. The increase in spending is also driven by major corporations appointing or hiring a CDO. The bigger the company, the bigger the CDO budget will be. Not sure what the trend would look like with budget figures normalised for company size. But in absolute terms, the data spend is increasing.
- https://hbr.org/2019/02/companies-are-failing-in-their-efforts-to-become-data-driven
- https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2016/10/building-trust-in-analytics.pdf
- https://hbr.org/2017/06/how-to-integrate-data-and-analytics-into-every-part-of-your-organization
- https://www.gartner.com/smarterwithgartner/half-of-cdos-succeed/ The average tenure is 2.4 years
- How do you reconcile both sides? It’s like having surströmming with cloudberry jam on top!
- https://www.youtube.com/watch?v=uT4yzKM2gjs
- In fact, coordination is optional for this plan to work. Every C-suite can play the same strategy in isolation, without being overt about it. There’s this (convenient) risk of disruption, something has to be done about it. Everybody responds to that risk with spending like mad on CDOs and data Jeff Bezos on data: https://www.youtube.com/watch?v=uT4yzKM2gjs Gather a lot data, immerse yourself in it, make the decision with your gut – data cherry-picking
- If Birger divorces Sigrid, he comes across as the bad person.
- Not only the C-suite doesn’t care, their strategy makes us look bad when we quit. As web analysts, we lacked business acumen and communication skills, alignment with the business needs, etc. But the main challenge a CDO faces, and web analysts, is the lack of data literacy. The equivalent of the marital counselling here.
- Web analytics is, in my view, built on a set of faulty assumptions. The C-suite’s support many not always be genuine and hide an ulterior motive. A motive of not letting data even just inform decisions.
- Tech is not the issue, said 93% of the respondents to a 2019 survey published in the HBR. The issue is the culture. 40% blamed the lack of insight aligned with business goals. 24% blamed cultural resistance. Source: https://hbr.org/2019/02/companies-are-failing-in-their-efforts-to-become-data-driven A big bang investment will not only be very challenging to result in a positive ROI, this will compel an analytics team to strong-arm the stakeholders into implementing their recommendations. Ignaz Semmelweis vs Louis Pasteur.
- CDOs and Head of Analytics should insist on a gradual investment in analytics in all its many forms. This initial seed investment is our job to grow by seeking to prove the value of analytics at a small scale, and leverage this early success for a little more investment. Incremental progress, early wins, gaining allies in the business, works better and faster.