How to Become a Highly Effective CDO – InformationWeek
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Data is the lifeblood of today’s connected enterprise. That’s why a growing number of organizations are appointing an effective chief data officer.
June 17, 2025
Data, data, everywhere and not a terabyte to take for granted. A chief data officer (CDO) is the executive charged with gaining the maximum value from enterprise data. A CDO typically oversees data management functions and sets an organization’s data strategy, including data governance, data quality, data analytics, and data security.
To become an effective CDO, it's necessary to build multiple capabilities, says Emily Lyons, chief enterprise data and data science officer with Liberty Mutual Insurance. In an online interview, she notes the need for a deep understanding of the business they serve, and how data can help that business stay competitive and drive success. "This is the crux of setting a strong data strategy."
A CDO must understand every part of the business, including its challenges and opportunities, as well as how data and AI can help solve those challenges efficiently, says Daniel Avancini, co-founder and CDO at AI and data services firm Indicium. Addressing challenges often means investing in a new data platform, hiring top-tier data engineers, or running training sessions on how to better use existing tools, he says in an email interview. "The key is to focus on the business goals first. The data comes second."
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Today's IT world is changing rapidly, influencing the CDO's path forward. "Look at the recent advancements in technology, namely GenAI, in the last two years,” Lyons says. "Understanding the impact of emerging technologies on your roadmaps and identifying how you can capitalize on those advancements is the key to success."
Avancini agrees. "Over the past 20 years, we've moved from cloud computing to big data to cloud data warehouses and now, AI," he notes. "Keeping up is hard but understanding what’s hype and what’s real is even harder."
Lyons believes that being a successful CDO requires a certain amount of grit. "Data is challenging and it will never be perfect," she explains. "Everyone will always want more data at a higher quality and in an easier to use format." Yet the parameters of what "good data" actually looks like are constantly changing. "The ability to turn this fact into a source of motivation for you and your teams is essential to build resiliency."
Lyons stresses the need to build strong relationships. "Effective data management requires collaboration across many teams, including technology, business operations, legal, and finance." Aligning all of these teams to work toward a common goal, particularly when it comes to producing and operationalizing strong data and insights, is key.
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The CDO should work with counterparts in key enterprise departments to find data stewards and business experts, advises Cathleen Lilli, CIO at printer and copier firm Konica Minolta. "These individuals form a center of excellence that drives success and adds context to the data," she says in an email interview. "A leadership prioritization committee will ensure alignment with business priorities."
Everyone plays a role in making data better, and a CDO is best served by having their strategy, approach, and progress consistently vetted and challenged by team members across the enterprise, Lyons says. "These individuals will have an important perspective on how data can help your company be successful," she notes. "A CDO can gain valuable insights from people who have different backgrounds."
The CDO needs C-suite support to drive any meaningful change in how data is used across the organization, Avancini says. "Change is always painful, and becoming data-driven requires realigning people and processes, which often meets resistance," he notes. This task becomes even more challenging when AI enters the picture, since massive change can threaten existing roles and career paths. "Executive backing is non-negotiable."
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The CDO should also work to win the hearts and minds of non-executive employees, showing them the importance of learning data and AI skills and applying them to their day-to-day jobs, Avancini says. "While this internal advocacy is important, it’s not enough without buy-in from the top," he adds.
CDOs should always understand that they serve their company and its customers, Lyons advises. "There's always a risk of focusing too heavily on reaching perfect data technology or governance instead of data progress," she says. Remember that progress is the driving force behind delivering true value to your customers. "As we continue to experience rapid change, it's critical to embrace a growth mindset and view change as an opportunity and not a block to success."
CDOs should work with their executive counterparts to create a data-driven organization while understanding that colleagues may not fully comprehend data's inherent complexity, Lilli says. Additionally, the CDO should avoid adopting an overly rigid approach to data management, assuming they have all the solutions.
John Edwards
Technology Journalist & Author
John Edwards is a veteran business technology journalist. His work has appeared in The New York Times, The Washington Post, and numerous business and technology publications, including Computerworld, CFO Magazine, IBM Data Management Magazine, RFID Journal, and Electronic Design. He has also written columns for The Economist's Business Intelligence Unit and PricewaterhouseCoopers' Communications Direct. John has authored several books on business technology topics. His work began appearing online as early as 1983. Throughout the 1980s and 90s, he wrote daily news and feature articles for both the CompuServe and Prodigy online services. His "Behind the Screens" commentaries made him the world's first known professional blogger.
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