The Strategic Transition from CIO to CDO – InformationWeek
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Today’s landscape calls for traditional CIOs to be elevated into chief digital officers. Understanding what it means and how to make it successful is key.
June 18, 2025
The chief digital officer (CDO) role has generated significant discussion in recent years, raising questions about its true value and the misunderstandings surrounding it. With the explosion of AI and the expectations it has placed on leaders, the role of the CDO is more relevant now more than ever. This observation highlights the potential for existing roles, such as CIOs, to evolve into CDOs.
The rapid evolution of technology management has expanded the expectations for leadership, meaning traditional CIO roles may no longer suffice in addressing the complexities of today’s macroeconomic environment and the era of AI. Organizational strategies must adapt, and CDOs are essential to drive this transformation.
Are you a CIO or in a similar position and curious about what transitioning to a CDO role would be like? Read on to see if adopting the CDO role would help your organization realize greater value.
How is a CDO different from a CIO? Simply put: CIO role + strategic business vision = CDO. This elevated role not only covers IT operations but also focuses on cybersecurity, risk, and compliance. A CDO is responsible for strategizing how to enable, protect, and transform an organization through technology.
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Being both a technology and a business leader, a CDO oversees a broader range of operations beyond just IT infrastructure. They position themselves to drive digital transformation by developing and executing a strategic vision that propels the business forward. When organizations add a CDO to the executive suite, CEOs and boards seek a leader who balances growth, risk, and protection.
In today's competitive and fast-paced business environment, merely maintaining the IT status quo is insufficient. Organizations require a CDO to see the bigger picture, connect more dots, and make decisions based on the direct impact of IT on business outcomes. Transitioning from CIO to CDO involves moving away from daily operations to concentrate on how technology drives sales, enhances customer engagement, and fosters innovation. Since the CDO’s role encompasses enterprise risk and compliance, they must balance innovative ideas with the challenges of security. There’s also often more engagement with an organization’s board and risk audit committees to address how digital transformation impacts shareholder interests.
A key way a CDO delivers value is by remaining closely aligned with business needs. By questioning existing processes and tools, a CDO ensures that the organization extracts the maximum value from its technology investments. The question “Is this really moving the needle?” underpins every decision made by a CDO.
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The CDO also adds discipline to operations, ensuring that both existing and new tools are cost-effective, streamlining unprofitable workflows, and leveraging data to discover growth opportunities. A prime example is evaluating AI capabilities within organizational tools. When adopting AI, a CDO critically assesses whether the technology adds value, adheres to security and data privacy standards, and justifies the investment. Gartner predicts that by 2027 enterprise application costs will increase by at least 40% due to GenAI pricing, meaning balancing enablement, costs, and compliance will be increasingly difficult.
Once AI tooling is selected, a CDO collaborates with human resources and internal communications to effectively launch the technology. Unlike the traditional CIO model, which often is siloed, a CDO works early in the process with internal partners to enhance user experience through comprehensive communication, resources, and training — especially regarding the safe use of AI. By embedding controls within the technology framework, a CDO bridges agility and security to optimize the AI experience for both the business and its employees.
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Having transitioned from CIO to CDO at Dayforce, a leader in HCM technology, I can say with firsthand experience that it can be challenging to widen your mindset to think differently. It can also take time for your colleagues to view you differently and not just think of you as an “IT person.” Getting a bigger seat or voice at the table can be hard, but with the support of internal champions across the organization, I’ve made significant inroads during my transition to CDO.
Here are the top lessons I’ve learned along the way:
Trendspotting with discernment: Staying abreast of the latest technology trends is vital, but a savvy CDO must separate genuine innovations from the noise. Assess new technologies with a critical eye, ensuring that any adoption will help accelerate business priorities and drive tangible benefits to the bottom line.
Mind on the money: Speaking of the bottom line, a successful CDO keeps ROI at the forefront. If your background as a CIO leans heavily on technology knowledge, start amping up your understanding of your organization’s finances. Be a big-picture strategist rather than narrowly focusing on IT.
Aligning on AI: Getting buy-in from leadership on a value-driven, integrated AI strategy is critical — and it all starts with defining measurable goals with input from stakeholders across the organization. CDOs are often responsible for providing strategic counsel on the state of existing infrastructure, how operations will be redesigned, and what IT tools will drive workforce innovation, mitigate risks, and maximize ROI. Once departments are aligned to a shared strategy, the true work begins.
Carrie Rasmussen
Chief Digital Officer, Dayforce
Carrie Rasmussen is Dayforce’s Executive Vice President, Chief Digital Officer. She is responsible for Global Information Technology, including Digital Transformation, Cybersecurity, Compliance, and Enterprise Data Analytics. Carrie is an industry veteran with more than 20 years of experience leading enterprise organizations. Previously, she was the CIO at The Save Mart Companies and has held senior leadership roles at Safeway Inc. and Albertsons Companies. Carrie holds a bachelor’s degree in agriculture and a master’s degree in agriculture business management from the California Polytechnic State University at San Luis Obispo.
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