Posted on

Petra Ålund: What the Next-Generation IT Organization Looks Like    

As we enter the new world of work, all eyes are on CIOs and their teams to drive digitalization initiatives and successfully integrate them into existing systems. IT is breaking out of their silos and now has a much-deserved seat at the C-level table. No business decision can be made without the input of the IT division as we move into more technologically advanced ways of working.  

We tap into the expertise of  Petra Ålund, Head of Technology at SEB, on effective IT technologies and data strategies, IT talent shortage solutions and the characteristics of tomorrow’s IT organization.      

 

What IT technologies have made the biggest impact on SEB’s business processes?  

Intelligence has come a long way in the last five years. With increasing volumes of transactions and trades, manual work is not enough to maintain optimal pace and quality.  AI and ML are vital in several aspects of our business operations. This includes securing the best uptime for our data centers and keeping a high-security level to data-driven advice internally as well as for our customers.  Here are two important examples:  

  • AIOPs:  AI operations use predictive infrastructure anomaly detection to detect deviations early, preventing downtime and service outage. 
  • Anti-Money Laundering & Financial Crime Prevention:  AI is applied to large sets of data. Its smartness can detect anomalies which allows us to report them earlier. This will help us prevent, examine and report anomalies and suspicious activities more efficiently.   

We are only starting to reap the benefits of smart technologies and we can already see positive impacts. The cloud journey is very prominent and a top priority in most industries. Cloud is the way forward to be scalable, flexible and locationally independent. We have partnered with Google Cloud to collaborate on innovative products and services to provide our customers with a better user experience.  

As a third example,  integration of Application Programming Interface (API) into systems, services, customers, other companies, and data sources will have a big impact on business processes. Leveraging both internal and open APIs on the market will allow the highest availability of components to easily build new solutions for customers.  

 

What is your idea of an effective data strategy for optimal data utilization and protection?

Being data-driven is more than having a data warehouse and producing reports and dashboards. Data transformation is about having your data in order, but more importantly, it is about people upskilling and implementing whole new ways of working in all parts of the bank. It is a big cultural change, and it should not be underestimated.  

 

What are your solutions to solve the IT talent shortage? 

Attract new talent  

Since the competition for talent is fierce, especially for talent with more scarce competencies, talent management is an area SEB is really investing in. Our global talent acquisition team is using cutting-edge tools to be able to work in more data-driven ways to find the right candidates faster and to enhance their end-to-end experience.   

Branding is super important to attract talent. At SEB we are fortunate to be one of the top-ranked Nordic financial employers among finance and IT students. We have close collaborations with universities and regularly participate in events, job fairs, career days, workshops and research fields both directly and through our owners.  

Train and retain our talent  

We work with experts, international universities, and schools to offer learning in all fields to inspire, develop and support our employees’ ambitions. Our initiatives include internal events, hackathons and fully digital business universities. In addition, we offer mentor programs, volunteer programs, job-shadowing and internal gigs where employees can work in different parts of the bank for short periods of time.   

 

What does the next-generation IT organization look like?

Business is IT and IT is business. We will see a continuation of this trend as there is still high demand for digitalization and new technologies. IT is the foundation and delivery mechanism of most financial and banking products and services. Technologies are part of all external and internal deliveries in back-office, operations and customer-facing  functions.   

IT departments are growing in the presence of new marketplaces and ecosystems. They are the infrastructure that enables the digitalization of processes and services for both employees and customers.   

At SEB we have a virtual agile organization with 16 domains consisting of 65 tribes and 285 teams. These are cross-functional execution vehicles that  increase adaptability to change as an organization. This structure allows us to learn, pivot and deliver at high speed, and to thrive in a competitive market.  

I believe that DevSecOps (Dev: IT development, Sec: Security, Ops: IT operations) and IT automation will continue to accelerate in 2022. DevSecOps combine people, processes and automation to unite culture, work methods and tools to create the best prerequisites for fast and stable delivery.   

 

How has the CIO role evolved in the last 18 months?  

CIOs are becoming visionaries of the future as they provide insights into the changing business landscape and how to adapt to new technologies. This has been the set-up at SEB for quite a while where the CIOs are in the front seat of driving strategy. 

This is in line with organizational development and learning as well as increased digital pressure from competitors, customers, and employees. All parts of the bank, with their different skill sets, are collaborating and are equally important in our agile set-up, where we drive both transformation and innovation of new products for our customers. 

 

*The answers have been edited for length and clarity.  

Posted on

Sharareh Edström: Energizing Future Transport and Value Chains

At the core of every efficient supply chain is well-planned logistics and transportation. The future of transport is eclectic, and gas carries the most important role in this transition to achieve sustainability while maintaining competitiveness. But to make the transition smooth, I call for increased transparency, cross-industry partnerships, and for a more comprehensive view on the sustainability of value chains, says Sharareh Edström, Director of Traffic Sweden, Gasum.  

As one of the leading producers of biogas and handler of biodegradable waste in the Nordics, Gasum has built a reliable gas infrastructure that secures the availability of gas in the Nordics. This infrastructure covers the full value chain from production of biogas to transport and distribution.  

“Gasum has contributed tremendously to the development of the market and invested a lot to make sure it’s easier for transporters to convert to gas”, Edström says. 

Today, sustainability is the driving force for many players, and many more are joining in. The regulatory environment is steering and supporting cleaner solutions. The customer demand for low emission solutions has increased rapidly. And as things evolve fast, this also leaves some conceptions outdated. 

 
Grow your network: Meet Sharareh Edström and other forward-thinking leaders at the Nordic StrategyForum Supply Chain and Procurement in Sweden.
 

Sufficient, sustainable and economically feasible 

 

The key questions around biogas usually focus on availability and costs. Will there be enough gas to satisfy the demand, does it require additional investments in infrastructure? According to Edström, these questions were very topical in the transport sector just a few years ago. Conversion to gas was seen as complicated and expensive. As these fears have diminished with Gasum´s investment plans to continuously grow the filling station network, the question of continuity still lingers – will the gas run out?  

“There is this misconception, that there wouldn’t be enough feedstock to produce sufficient amounts of biogas for traffic. There is a realistic feedstock potential in the Nordics to make 30 TWh worth of biogas. We’re aiming to supply 4 TWh of biogas to the market through our own and partners’ production in 2024 already. This amount would cover the yearly fuel need of around 10 000 heavy-duty vehicles. In addition, the gas infrastructure enables the utilization of synthetic methane and power-to-gas solutions in the future, which significantly expand the availability of renewable gas”. 

In addition to Gasum’s own initiatives, there is also support from the Swedish government’s behalf to increase the production of biogas. As part of the Klimatklivet, a support initiative for local and regional investments, the Swedish government wants to introduce production support for biogas: 500 million kronor next year and then 700 million kronor annually until 2040. 

Edström says that customers recognize gas as a smart and cost-efficient investment, knowing there will be continuous investments in the infrastructure, which also creates more stable prices than the fossil alternatives. 

In Sweden, there are a total of 27 stations, of which Gasum has opened 17 liquefied natural gas filling stations for long haul gas trucks and many more are to be built in the nearest future. 

In 2020, sales of liquefied gas increased by 230%. The trend continues, not only in Sweden but in the neighboring Nordic countries and the rest of Europe, as well. 

 

A need for a transparent and holistic view – taking action where it matters 

 

Edström says, that the sustainability discussion on supply chains occasionally tends to lack a holistic view, and thusly a certain part of the chain might get a proportionately larger focus than it should, referring to transport emissions.  

“Today, we’re talking about the whole value chain, therefore it doesn’t make sense to focus on just one part of it – the tailpipe. We need to look at the whole value chain when it comes to the life cycle. From the fertilizer to the food being cropped, to the final product sitting on the table”. 

Gasum offers expert services for heavy transport, maritime and industry, making the company active in the whole value chain. Renewable gas offers a new link between the industries. 

“Gasum’s liquid biogas is produced from biodegradable waste such as manure, food waste, damaged crops and process water from the industry. During the production, we also get biofertilizers, that can be used to grow new crops in the Swedish fields. When you choose liquid biogas, you become part of the circular economy “, Edström says. 

“I would like to have more transparency than what we have today. For example, cross-industry emission savings should be much higher appreciated than tailpipe emissions. We need to redirect our efforts much easier to see a product’s true lifecycle emission”, she adds. 

 

Partnering up across industries 

 

“I would like to see industries collaborating to integrate our value chains and visualize how circularity is bringing exponential effects not just in transport but in agriculture and waste management as well. Once we get these industries working seamlessly together, then we will see the sustainable benefits and reach our ambitious national goals”. 

The key to a better understanding is to link between the different industries, fuel, industries with organic waste and agriculture, and make the benefits of circularity visible and understandable for the larger public. 

In addition to aiming for better transparency, Edström advises companies to really study their value chain to identify where the most significant emission savings can be made and take action there to minimize the impact on our climate. 

“Companies need to be very clear on where they’re emitting emissions. It very seldomly is the last mile that is the problem. There is a need to recognize where the emissions lie and take action on a global, and a national level.” 

Posted on

Danfoss eSteering Way: How Do We Work Without Managers?

Written by Vivek Menon, Senior Director and eSteering leader at Danfoss Power Solutions. 

 

One of the first questions I get asked when we talk about our self-managed journey is, how do we work without managers? And ironically, this question usually comes after the comment, “But no one tells us what we need to do, we are already self-managed.” 

My answer with a big smile usually is, well if that comment is true, then there shouldn’t be any problems. But what I have observed is that individuals are self-managed in their own tasks and accountabilities but not necessarily self-managed as teams. What I mean by that is, if there are differences of opinions on priorities, activities, directions, clashes of personalities or resources which are not resolved between two individuals, then there is usually an escalation to the manager or managers (if the two individuals belong to different line functions).

So, then the article’s headline question starts to form, and I see it as a question of how we handle these situations in a self-managed organization. When there is no manager or managers to escalate to how do we handle such issues which could be strategic, technical, commercial or people related? 

Answering this natural and pertinent question is part of going deeper into the “structure” from traditional hierarchy to self-managed. In the previous overview article Self-Managed teams – the Danfoss eSteering way, we spoke about how structure is one of the 3 elements besides “processes” and “mindsets” that need to be changed in this type of organization. 

 
Learn about digital culture in organizations: Join Vivek Menon’s panel discussion called Take the Risk, Fail Fast, and Learn: Enabling a True Digital Culture In Your Organisation at our exclusive event in Denmark, Digital Advantage.
 

To answer this question, I first go back to what key activities a traditional manager does. A manager usually must perform a mix of two key types of roles: 

  • Functional roles: This role usually covers strategic direction setting, goal setting, short-term prioritization, decision making, budgeting, functional conflict resolution, functional expertise or mentorship, KPI accountability, facilitating operational and governance decision meetings and keeper of time, history of decision and actions and follow up. 
  • People roles: This role usually covers people development, performance management, hiring and letting go, compensation, resource management, people conflict resolution, team well-being, reporting and administration activities. 

Now the first thing you need to understand is that whether you have managers or not, you still need all the above activities to be handled well for the success of a team. 

 

No manager does not mean, no management 

 

So, what we do in our self-managed organization is to split these key roles and activities into multiple roles and accountabilities. There are two key advantages of this approach a) Decentralization and empowerment into multiple roles and b) Breaks the myth of the manager as this all-knowing, all-capable person or individual. We all know it’s nearly impossible to find a person who is excellent in both the people management roles and the functional management roles equally or at the very least, can juggle both types of competencies effectively at all times. 

So, let’s break down the two types of roles and how we handle them in Danfoss eSteering. 

 

Functional Roles

 

For handling the accountabilities of a manager in his functional role, we took inspiration from Holocracy and Sociocracy 3.0. We split and decentralized the main functional accountabilities into 3 main roles: Lead Link, Facilitator, Secretary. We have taken the roles as described by the Holocracy and used them in our context as below. 

Lead Link

The lead link is the keeper of the purpose of the team and sets the future direction and priorities of the team/circle. He/she is also responsible for the KPIs or success metrics of the team and ensuring the right resources (people and money) are available for the team’s accountabilities. The distribution of roles within a circle is also the lead link’s accountability. Any non-delegated role or accountability also lies with the Lead link. 

Facilitator

It is basically the facilitator who is “running” the meeting and ensuring a non-hierarchical, consent-based decision-making process is followed in the circle. Here is a video describing how we run a consent-based decision-making process, inspired by Sociocracy 3.0. The facilitator proposes the short-term prioritizing of the topics, whether it be operational or governance meetings. It is critical to separate the role of lead link and facilitator between two different individuals as the facilitator is a counterbalance to the lead link role. This is especially true for teams that are starting from traditional hierarchies and a former manager is taking on the lead link role. 

Secretary

The secretary is the memory of the team. In this way the secretary is both responsible for capturing actions formed in the meetings, updating our roles and setting things straight when we do not recall what was decided or how a role or one of our policies should be understood. Anyone who has used the “power” of capturing meeting minutes as the main decision agreement knows the power of a secretary’s role. Where the facilitator drives the meetings, the secretary ensures that the frame for the meetings is optimal. That covers both frequencies, scheduling of meetings and selecting software for the team that ensures maximum collaboration. 

 
 

People Roles 

 

This is where we are creating our own replacement of the traditional manager accountabilities and are evolving them as we go along. Just because we don’t have a manager does not mean that we do not need people processes and activities. So, we have started to define roles that support replacing these accountabilities with new roles in the business. 

Sparring partner

People development is a very important topic for us. We believe every individual owns their own development path and goals. However, we see there is clearly a role needed to take the sparring with an individual and support in creating their development goals and the progress of these defined development goals.

However, what we saw as a limitation in the traditional way was that taking this discussion only took place with the manager and their employee. This we believe is limiting both the manager and employees. For example, cases where the desire for development for the individual is a new area or competency where the manager might not be able to guide in the right way.

A sparring partner is therefore a mentor/coach of your own choice, who is a facilitator of an individual’s development and who you feel comfortable discussing your own personal development. The sparring partner can also facilitate 360 feedback on the individual’s activities. We have cases where product-focused roles chose a mentor who can support them in developing into project managers. We have also seen that this is something that needs to be trained for both the sparring partner and the employee. 

New roles

Besides the sparring partner we have also developed new roles within eSteering team to handle the different people activities. One of the roles of a traditional manager is to hire people. For this very specific time-limited and outcome-based role, every team can appoint someone on a Hiring role for any new position that they want to fulfill in that team/circle. To add to it, we also have added the element of team hiring instead of individual hiring.

Another aspect of a manager’s role is to ensure the well-being of the team. Having a healthy workplace and a fun place to work is critical to employee engagement and happiness. For this, we have a Well-being role and they have taken the role further to form a team of CFO’s (Chief Fun Officers) and are organizing team events and activities.

Another key role that managers have is communication with various stakeholders. To cover this role, we have added multiple roles for communications internally and externally and we call them Bards. As we go along, we might have to define more such new roles based on the accountabilities.

Self/Circle

Besides the above-mentioned roles we have ensured that all other accountabilities of the former manager have to be covered by the circle and its purpose. Every individual is empowered to bring “tensions” to the circle they are members of. Tensions can be both an aspect of change for the better (what could be instead of what is) or concern like a conflict they are not able to resolve and get support from the team to move forward.

We have a Danfoss Behavior that we call – “Run the business as your own” and we live that spirit in eSteering. This means that everyone has an obligation to bring forward the tensions they observe and get support to solve them by following a consent-based decision process. Taking empowerment also means taking responsibility for problems and issues and managing them in a mature professional manner. This is especially true in cases of conflict between individuals.

These tensions are raised and solved in the meetings we have. We truly believe that when we can solve conflicts and solve issues in our personal lives, we should also be able to handle them in a good way at work too. We have also enabled our teams with extra support by providing soft skills training into conflict resolution, communication and facilitation and questioning techniques.

 

So, this is how we are currently working without a manager in eSteering

 

This requires team members to be able to consider topics beyond their own area of work and be open to helping each other based on their passions and interests. For all of this, transparency is the key so that people can support making the right decisions for the business. This doesn’t mean only easy or fun stuff, but also harder decisions when you need to re-prioritize activities or reduce budgets. Having said all this, we are still learning and evolving and probably need to work with more in specific areas to clarify further for e.g.: development paths. The good thing is that until we have defined it, we can still use existing processes for the same. 

And what about former managers? Well, for those who are passionate about the above specific roles, they are continuing to fulfill them as selected by the teams and those who prefer to avoid specific accountabilities or roles for whatever reasons can now take on new roles and accountabilities that are more suited for them. This splitting of people roles and functional roles is really something we believe is good for organizations and teams as not all current managers enjoy both sides of the roles and by splitting the roles, we enable breaking the myth of the all-knowing manager. 

 

 Continue reading Vivek Menon’s work on the Danfoss eSteering Way: 

Posted on

Mika Susi: How Companies Can Remain One Step Ahead of Cybercriminals

With cybercrime, it is now not a question of ‘if’ but ‘when.’ Today’s cybercriminals are more advanced, quickly adapting their tactics with each improvement in an organization’s security system. How can IT leaders ensure that cybersecurity systems are powerful enough to keep even the smartest cybercriminals at bay?  

We had an opportunity to pick the brain of Mika Susi, former Executive Director of the Finnish Information Security Cluster, on how cybercriminals think, the role of cybersecurity in risk management, steps to improve employee cybersecurity programs, and more.  

 

What weak spots do cybercriminals look out for before carrying out an attack? 

It is true that digitalization tends to expand the attack surface on an organization. Many criminals carry out intelligence gatherings on their victims before the attack. There are several weak spots that are commonly utilized. Unpatched vulnerabilities are a common target for criminals. Many times, humans are said to be the weak link in cybersecurity. Recently, we have also seen many attacks using an organization´s supply chain and partners as weak spots to get access to their network. Therefore, you must assess your cyber risk environment through technology, people and partners. 

 

What role does cybersecurity play in an organization’s risk management strategy? 

Nowadays, cybersecurity should definitely be on every organization´s strategic risk management agenda. You just can´t avoid it anymore. Cybersecurity issues are currently a very relevant strategic question for most organizations. Your top-level executives should at least be aware of security issues concerning business continuity, communications, and R&D.

As a whole, a good level of security should not slow down digitalization. A well-planned and executed digitalization process, where security is taken carefully into consideration, enables safe and secure digital operations, better efficiency and resilience for the organization. Therefore, security is not an obstacle — it should be seen as an enabler. 

 

How can IT leaders ensure that they are making the right IT security investments?

Investments should always be based on a good risk management process. This means that they are efficient and tailored precisely to an organization´s needs. There is no investment rulebook or checklist that can be applied to every environment. An organization must understand its own unique risk environment and through that set out the most urgent and effective investment needs. 

 

What are the biggest challenges organizations face when building cyber resilience? 

There is of course always the question of the need for funds and investments. Unfortunately, not all organizations are ready to invest heavily in cybersecurity. I think the major challenge for many organizations is to understand cybersecurity as a strategic level question. It is not just some IT guy in the basement using his company´s money to buy fancy security gadgets.

Building a good level of cybersecurity is an all-encompassing mission for an organization. It´s about people, leadership, communications, partners, learning and continuous development. In other words, it´s a process that will never be 100% completed. But if you invest in it, you will eventually see a good return on your investment. 

 

What immediate measures should organizations take after experiencing a cyber attack? 

Of course, it is necessary to start the containment and recovery process immediately. This means that you have to understand what is happening and what has happened already —  in other words, gain the current situational picture. There is no other way to define the measures needed. If you feel uncertain about this, you can always contact professionals to help you. I would like to stress that readiness for both external and internal communications is crucial. 

At the same time, it is important to remember that there are several regulatory reporting requirements concerning data leaks and breaches. Contacting the relevant authorities like the national cybersecurity center or the police is also very advisable as they can offer help and advice.

 

Do you think employees are the weakest link when it comes to an organization’s level of cybersecurity? How can cybersecurity training programs for employees be improved?

This might be a mantra that everyone is tired of, but in some respects, it is still a valid argument. We are all vulnerable to scams and fraud, and we can be socially engineered to do something harmful in a digital environment. However, well-trained and motivated employees are a great strength for an organization. If they notice risks, they will react, assess and report. In that case, they are definitely not the weakest links.  

I see that basic knowledge of cybersecurity issues is currently a normal part of working life. Therefore, cybersecurity training programs should be very close to everyday working environments and situations. They should form a basis for continuous development for all.

Additionally, they should include some motivational aspects like reward systems. In many successful companies with good security culture personnel, reward systems have been integrated into security training programs. That is something I would like to see more.   

 

What are the emerging cybersecurity and cybercrime trends in 2022? 

This is always a good question! Nothing is harder than predicting – especially predicting the future. However, I can say that we are still going to see the constant evolution of cybercrime. Criminals develop their tactics further and we are going to see a continuous flood and changes in ransomware and other online fraud campaigns. 

Secondly, one thing that already affects many organizations is growing regulation. We see this everywhere. Every company should prepare for growing cybersecurity compliance requirements. From a technological side, I think questions concerning cloud security, IoT and the security of wireless networks will be relevant in the next few years. Many organizations have uncertainty about these issues, and it is important for all organizations to experience the benefits from digitalization and developing technologies. I see that security´s role is to enable growth and efficiency, and not to hinder them.

 

*The answers have been edited for length and clarity. 

Posted on

Marco Hoppenbrouwer: Fueling Growth Through Data-Driven Culture

With remote work expected to become a mainstay in the foreseeable future, IT and business leaders are looking at new ways to ensure that their employees are equipped with the necessary critical insights needed to make business decisions.

One of the key approaches is to develop a data-driven culture: the utilization of emerging technologies to drive business value, pushing an organization to be insight-driven as opposed to gut-feeling and operating in the dark.

Marco Hoppenbrouwer, Chief Data Officer for Global Functions & Finance at Shell, understands the value of data to drive value for businesses in today’s modern landscape. In this interview, Hoppenbrouwer shares his insights on how the chief data officer (CDO) role has evolved and why a data-driven culture is a necessity for corporations.

 

The Power of Digital and Data and The CDO’s Role

To compete in an age of rapid acceleration, companies need to be data-driven, but the transition from a feeling- to a fact-based organization is not an easy path. With only 24% of companies truly fostering data-driven cultures, it is up to the CDO to push the initiative of cultivating data technology in a business.

However, before CDOs can achieve that, Hoppenbrouwer points out why the components of Digital and Data are important for a business and what the focus needs to be for CDOs to streamline the transition towards a fact-based organization.

 

How has the role of the chief data officer (CDO) evolved in today’s data-driven culture?

 

Let me first set the scene as to why digital and data are so important for any business and one cannot do without the other:

The energy transition and digitalization are two mega-trends that affect the world in the coming decades. Both are expected to have a profound impact on the way everyone lives their lives.

Digital technologies can play a key role in the transition to a lower-carbon future. Furthermore, we see a rapid increase in digital products, services, and processes coupled with increasing expectations for a seamless digital experience from both our customers and employees. 

Digital is not new, but what’s different is the availability of technology, data, and capabilities that are growing at an exponential rate. Digital is also one of the few processes that require quality data as input to be successful. 

I’ve seen projects fail because a Proof of Concept was successful as it was run on manipulated datasets but this was not the reality in the field when the solution was to be deployed.

Maximizing the benefits of digital technology is heavily dependent on the readiness of an organization and its workforce, meaning:

  • It is key to upskill the workforce with new tech skills
  • The entire organization needs to be data-savvy

This also means that if the organization cannot keep up, it will rapidly be taken over by a competitor that leverages digital technologies and can deliver a more compelling value proposition faster and at a lower price point. A good example of digital disruption is SpaceX which disrupted the entire launch industry.

As to how this answers your question, the role of the CDO has changed from an information & compliance management role into a strategic value generator role. With digitalization and the emergence of the CDO, data is now at the forefront and is seen as a key-value driver that drives business outcomes.

 

What role should the CDO play in streamlining the transition to a fact-based organization?

 

There are three key areas the CDO should focus on:

  1. Accelerate digitalization and drive business value from data, meaning:
    • CDO knows how data enables the business strategy and what value it can drive
    • CDO knows what data is needed, who owns it, where it’s mastered, whether it can be trusted, and how it can be accessed
    • CDO formalizes roles & responsibilities for Data Management
  2. Increasing organization’s data literacy so that:
    • employees understand the importance and their role in data management, including data quality beyond their line of business. For example: if the quality of data you create is not good enough for downstream usage by another line of business, you create a problem in the value chain.
    • employees have the technical skills to drive value from data through citizen developer tools such as the Microsoft Power Platform. This can be achieved through developing role-based learning paths, setting up a community of practices for sharing key data-related best practices, and running DIY boot camps or Hackathons.
  3. The CDO should strive for data-based decision-making by ensuring that the required analytics & insights are timely available in the decision-making process
 

Eyeing The Potential and Opportunities of Data-Driven Culture

The field of data analytics has consistently grown, in terms of acceptance and importance, and will play a critical role as a decision-making resource for executives in modern companies. 

Gartner predicts that by 2024, at least 30% of organizations will invest in data and analytics platforms, increasing their business impact for trusted insights and encouraging new efficiencies. As such, CDOs must take the initiative in fostering data technology as an organizational asset for digital transformation.

But, what are the challenges and how should CDOs approach this transition?

Hoppenbrouwer delves into the main points of how the CDOs should facilitate the data strategy for an organization, and the perspective needed to overcome the challenges of digitalization in a post-pandemic market. 

 

With data having the potential to transform functions into a high business impact model, what initiatives should the CDO take to help this transition?

 

Ensure that there is a data strategy for each line of business. This helps pave a clear roadmap for the usage of data, the business value it enables, and the capabilities required to deliver this value.

Secondly, businesses will need to get the data into good shape, meaning:

  • Identify data ownership and resolve where ownership is unclear
  • Identify the data that matters, which means not all data, only the critical data
  • Make data issues transparent, such as data quality & remediation or master data management & replication
  • Embedding of data quality management in daily operations for data that matters
  • Drive fit for purpose improvements

Lastly, there needs to be a focus on upskilling the employees on data skills.

 

Are there challenges for the adoption of data technology skills and culture? How has the pandemic affected these challenges?

 

There are many challenges and plans that have been impacted, but I prefer to look at the opportunities.

I am heading our European Data & Analytics community and normally we hold local and focused events on specific data topics. These can be lunch & learn or deep dives on how to start on the AI journey, sharing best practices from a recent analytics project, etc. 

Due to the pandemic, we organized virtual sessions. These events offer the opportunity for staff to virtually meet other colleagues outside their daily routines and join with D&A communities in larger events across the organization, such as data literacy programs or DIY boot camps.

At the same time, the pandemic has accelerated the business’ digitalization plans, putting much more emphasis on data enablement. As a result, it has increased the need for Data, Data Strategy, Data Governance, Data Quality, Data Skills, and Data Capabilities in the organization.

 

People At The Core of Data and Digitalization

The explosion of available data has given corporations the potential to fuel a new era of fact-based innovation and new ideas through solid evidence. All this culminates in improving operations, clear strategies, and better ways to satisfy customers. 

Yet for many organizations, a strong data-driven culture still remains elusive with data rarely being the foundation for decision-making.

What makes it hard for corporations to be data-driven?

The answer lies beyond data technology. It is about kickstarting the culture at the very top through leadership that sets expectations and decisions anchored in data. The lack of data awareness is something that Hoppenbrouwer believes is one of the major pitfalls for those in leadership roles.

Not all employees are sufficiently aware of the importance of data for the organization. People have learned to store certain data, but they are not really sure why this is important and what other departments do with it.

As a result, data provided by one department to another is often incomplete or contains errors on more than one. Supplementing or correcting this leads to additional work and additional costs. It’s key for employees to understand the data value chain and the role they play in it.

 

What pitfalls should the CDO be aware of when pursuing a data-driven culture?

 

Culture is made up of people, and changing a culture means you need to get a change going with the people. People don’t change naturally unless there is a reason to do so.

Everybody wants to deliver their digitalization strategy due to the value it enables and this is a key catalyst to improve data culture. 

However, data is a foundational enabler, and data responsibilities were considered an add-on to the day job without recognition for good performance in data-related activity.

Leadership needs to change here and needs to step up, from the top, all the way to the supervisors on the shop floor.

What can the leadership do to make these changes? Some examples include:

  • Publicly speaking about the role and importance of data 
  • Clearly articulate how data enables the business strategy and the value it unlocks
  • Data roles & responsibilities need to be formalized AND effort recognized
  • Visibly recognizing the good work done in the organization to get the data right
  • Sharing of success stories and lessons learned
  • Encouraging staff to become more data literate, through sponsoring data literacy events, citizen data science boot camps, and inclusion in personal development plans

Ultimately, the CDO plays a key role here in supporting the leadership to drive change through the organization.