How The Chief Digital Officer (CDO) Role Leads Digital Transformation Initiatives

 

The following is from Jeff Winter, Sr. Director of Industry Strategy, Manufacturing at Hitachi Solutions America. Digital transformation (DT) is a comprehensive organizational shift that involves integrating digital technologies with business processes, necessitating revised or entirely new business models. This process is not automatic and requires substantial support and leadership. Many organizations are now introducing a 𝐂𝐡𝐢𝐞𝐟 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐎𝐟𝐟𝐢𝐜𝐞𝐫 (𝐂𝐃𝐎) role to lead DT initiatives. The CDO role, still in its nascent stages, can vary significantly across organizations, depending on factors like the company's digital maturity and the current Chief Information Officer's responsibilities. CDO functions align with the development of 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐃𝐲𝐧𝐚𝐦𝐢𝐜 𝐂𝐚𝐩𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬 (𝐃𝐃𝐂) — the ability to build, integrate, and reconfigure resources and competencies for digital transformation. CDOs are responsible for fostering: • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐬𝐞𝐧𝐬𝐢𝐧𝐠 - Identifying trends and potential disruptions • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐬𝐞𝐢𝐳𝐢𝐧𝐠 - Utilizing digital platforms and new business models • 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐢𝐧𝐠 - Continual realignment of assets for DT The implementation of these functions largely depends on the company's digitalization pressure and the effectiveness of its cross-functional teams. The decision to establish a CDO position is contingent upon these factors. 𝐅𝐮𝐥𝐥 𝐑𝐞𝐩𝐨𝐫𝐭:

https://www.sciencedirect.com/science/article/pii/S0040162522002979