Professional Documents
Culture Documents
Hess and Holar (2016)
Hess and Holar (2016)
What Does a Chief Digital Officer Do? Managerial Tasks and Roles of a New
C-level Position in the Context of Digital Transformation.
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of the organization and to key decision makers in other departments.
Monitor The monitor seeks and receives information in an effort to understand the organization and its
environment. He must scan the external environment to keep up with changes in technology and
competition. The IS manager identifies new ideas from sources outside of the organization.
Decisional
Entrepreneur The entrepreneur identifies business needs and develops solutions that change business situations.
As such, he acts as an initiator and designer of change in the organization. He has to ensure that
rapidly evolving technological opportunities are understood, planned, implemented, and
strategically exploited. As an organizational change agent, he is able to influence the company’s
future strategic direction and opportunities.
Resource The resource allocator is responsible for the allocation of human, financial, and information
Allocator resources.
Interpersonal
Leader The leader is responsible for supervising, hiring, training and motivating subordinates.
Liaison The liaison establishes a personal external network of relationships and develops contacts with
important people outside his department. He communicates with the external environment
including the exchange of information with suppliers, customers, etc.
3.2. Sample
According to Patton [31], qualitative research Yin [30] differentiates between literal replication,
typically focuses in depth on relatively small which aims at identifying similar cases, and
samples, sometimes even single cases, which are theoretical replication, whereby contrasting results
selected purposefully. Although single-case studies are supposed to be generated. We selected our sample
are common, we chose a multiple-case study design in two steps:
as it allows for cross-case analysis and is less We searched for (1) companies that found
vulnerable to criticism regarding the generalizability themselves in the midst of digital transformation and
of the results. Still, we employed purposeful (2) employed a CDO. Among those we applied the
sampling for two reasons. Firstly, this enabled us to theoretical replication logic. We selected companies
select information-rich cases. These are cases from of different sizes and from different industries, with
which researchers can learn most about central issues some companies having a separate CIO position and
of their research questions [31]. Secondly, we were others not. This enables us to compare the execution
able to select cases based on theoretical replication.
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of the CDO role across different specifications. Table of the company, either to become more (cost-)
2 provides an overview of our sample efficient or to create a seamless customer experience.
Gains in efficiency are strived for in order to enable
3.3. Data collection and analysis employees to spend more time on personalized
customer service and experience. This includes, for
instance, the equipment of sales employees in the
Having selected information-rich cases,
retail stores with tablet PCs. This enables them to
interviews with the CDOs of each case lend
retrieve data more easily and to better cater to each
themselves for in-depth inquiry and, thus, serve as
individual customer’s needs. Other examples are the
our primary source of data. In order to triangulate our
introduction of new smartphone applications, which
findings, our interviews were supplemented with
integrate state-of-the-art technology, such as location
secondary data, including publicly available
based services and augmented reality, or cross-device
interviews with our selected CDOs, press releases
online shopping carts. Of particular importance
and management reports of their companies,
during the digital transformation is IT, which is why
comments by industry experts and company-internal
the CDO works closely together with the company’s
job descriptions of the CDOs.
CIO. He states that, as a CDO, he is mainly
The interviews were conducted face-to-face
responsible for the conception and planning of the
between March 2014 and April 2015. We used a
digital transformation, whereas the CIO mainly takes
semi-structured interview guideline, which prompted
responsibility for the implementation of the
the CDOs to talk about their company’s digital
corresponding IT.
transformation as well as their own responsibilities,
According to the CDO, the digital transformation
tasks and challenges in this process. During the
of the company will not be finished until the
interviews, we exclusively posed open-ended
company has reached a state he calls “digitally
questions to facilitate the exploration of each CDO’s
empowered and customer driven”.
managerial tasks and roles. For reasons of
transparency and traceability, we recorded each
The CDO’s roles: The strategic exploitation of
interview on audio tape. The recorded interviews
rapidly evolving technological opportunities and the
lasted between 45 and 115 minutes and were
implementation of digital innovations in the company
transcribed verbatim afterwards. We used ATLAS.ti
illustrate the CDO’s entrepreneur role. Of particular
to gather and code all our primary and secondary
importance to the CDO in this context is a culture of
data. Based on the coded material, we compiled
trial-and-error, which he deems necessary when
detailed descriptions of each case (see section 4) and
dealing with innovations. According to him, it is
conducted a cross-case analysis (see section 5).
critical to try out a lot of things and learn quickly
from errors.
4. Results In the course of digital innovation, the CDO
constantly monitors emerging trends and innovations
4.1. Case 1 (Retail) in the industry and analyzes how they could be
adapted to the company. He is always on the lookout
The CDO’s scope of tasks: According to the for companies who manage “digital” exceptionally
CDO, the position was created for two reasons: well and takes this as an inspiration. He then readily
firstly, to react to the inertia of the whole retailing tries out what seems appropriate for adaptation in his
industry in adapting to current changes and, secondly, company.
to stop missing out on the opportunities brought The CDO emphasized that the digital
about by digital innovations. The CDO now faces the transformation touches each functional area of the
challenges of compensating for what has been company, from HR to purchasing, making a
ignored for too long in the company and of keeping leadership position such as his necessary to
pace with upcoming changes. coordinate and drive the digital transition across the
In his position, the CDO is responsible for the company. In this context, he sees himself as a “digital
definition of the company’s digital strategy, the evangelist” in the company, trying to “digitalize” the
exploration of digital innovations and their whole workforce and fostering collaboration across
implementation in the company. The focus of his departments, which illustrate both his spokesperson
work thereby lies in the enhancement of the customer and leader roles. For instance, he once showed his
experience at all customer touch points, incorporating colleagues a movie about the digital transformation,
both the offline and online points of sale. The CDO which presented companies that were not able to
aims to use digital innovations in each functional area keep pace with current trends and innovations and
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therefore quickly lost ground in the market. iterative way and in collaboration with the CIO. The
Furthermore, he initiated a “digital campus day”, on CIO is then responsible to implement what has been
which employees could listen to keynotes from defined.
successful digital companies and experience new The CDO’s roles: As an entrepreneur, the CDO
technologies hands-on. He generally fosters “digital initiates and designs the controlled shift of the
collaboration” across the company, enabling company towards a more cross-functional, customer-
employees across departments to exchange opinions centric and digitally savvy company.
and ideas. The successful implementation of the digital
transformation requires strong communication skills.
4.2. Case 2 (Tourism) As a spokesperson, the CDO transmits information
company-wide and across all hierarchy levels in
order to convince all company-internal decision-
The CDO’s scope of tasks: The position of the
makers and the employees of the need to digitally
CDO was created to proactively drive the company’s
transform.
digital transformation, including the company’s shift
To accomplish these goals, the CDO
towards a more customer-centric, digitally savvy
simultaneously acts as a leader, conducting
enterprise. To date, the company had a completely
workshops to qualify and motivate colleagues to
different business model: producing travel offerings,
enable the digital transition in the first place.
which were then sold over travel agencies.
As a liaison, the CDO often attends networking
Interaction with customers did not take place. Even
events and conferences in order to develop contacts
though the company had already started with several
with people from her industry or to exchange
online platforms and first social media activities
experiences and ideas with the corporate group’s
during the last couple of years, these activities were
CDOs from branches in other countries.
characterized by a marked silo mentality. The
framework conditions were inadequate as a sole
digital subsidiary was responsible for the digital 4.3. Case 3 (Publishing/Education)
business, completely decoupled from the core
business. As a result, the two primary tasks of the The CDO’s scope of tasks: The position of the
CDO in the transformation process are now the CDO was created to transition from a “pure print
development of a digital growth strategy and the publisher” to a “modern education company”. After
bundling of all digital activities in the company, being hired, the CDO’s first task was to create a
resulting in a more cross-functional organization. digital vision for the company, and to translate it into
More specifically, the CDO is responsible for a cross-functional digital strategy.
massively growing the company’s online share, The main focus of the CDO in this process is
boosting App downloads and online registrations on product-related. This means that the CDO conceives
the platforms, as well as customer engagement rates ideas for new digital products. This, in turn, requires
on social media channels. To achieve these goals, the the conception of an underlying technological
CDO aims to create a 360 degree customer platform strategy. Technological platforms are
experience across all channels, devices and customer needed in order to both produce and distribute the
touch points. As a result, the primary focus in the new digital products and opened up further questions
CDO’s daily work is on the company’s online regarding the deployment of new technologies.
platforms with regards to digital content, customer However, the technological part of the transformation
relationship management, social media and is not the core aspect of the CDO’s job. The company
multichannel management. does not have a CIO and IT is centralized in a Chief
Another important aspect is the organization of Technology Officer (CTO) position at group level.
customer data in order to optimize the customer So, the CDO delegates aspects of the technological
experiences on the company’s various platforms. infrastructure to the CTO. The CDO also works
These tasks involve the creation of technical closely together with the software developers at
solutions, which the CDO manages in close group level in the course of new product
collaboration with the CIO. In this collaboration, the implementation.
CDO explicitly claims to take on the business The CDO described himself as a strategist rather
perspective, whereas the CIO takes on the IT than a technologist, as he focuses primarily on new
perspective. The CDO asserts to be responsible for digital products and customer needs. For instance, he
the first definition of the general IT requirements plans to incorporate data analytics into the new
which underlie the business goals. These digital products for reasons of personalization, but
requirements are then further developed in an also to inform product development, sales and
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marketing. He aims to track and analyze the customer experience are of utmost importance to the
efficiency of the company’s e-learning products and CDO. With regards to IT, the CDO develops a
services. company-wide platform in order to unite all websites
Overall, customer-centricity has a big impact in of the publishing group. Internally, the CDO also
his work. For instance, the CDO works together with works on a common group infrastructure in order to
development partners. These are potential customers, enable all employees to work with the same tools and
whose collaboration helps him identify customer to facilitate their communication and cooperation.
needs and adjust product development accordingly. One of the tasks of the CDO is the definition and
implementation of the publisher’s overall e-business
The CDO’s roles: As an entrepreneur, the CDO strategy. This explicitly includes the creation of
was the one to define the company’s digital goals and corresponding digital business models and digital
strategy and to adapt the existing business model of products. He also has the ultimate responsibility for
the company to the new market requirements. In this the marketing and sales of these products, the
context, the CDO mainly develops new product ideas implementation of IT-enabled business processes and
and drives their implementation. applications and the adaptation of the underlying
In order to develop new products in line with infrastructure.
customer needs, the CDO partners with development Overall, the CDO is responsible for both
partners, a typical liaison activity. increasing digital revenues and enhancing process
Many business functions are touched by the efficiency.
digital transformation, which illustrates the cross-
functionality of the CDO’s job. For instance, when The CDO’s roles: As an entrepreneur, the CDO
new digital products are created, also existing conceives the strategic direction of the company and
marketing, publishing and sales processes need to be adapts the existing business model.
adapted. As a spokesperson, he becomes involved in Of particular importance for the CDO is the
affairs across business units and he spreads spokesperson role. Firstly, one of his internal
information internally to convince all decision- challenges is to convince the whole company of the
makers of the company of the necessity to digitally need to digitally transform. Not all employees proved
transform. to be automatically on board, so the CDO organized
Finally, the CDO performs the leader role. The workshops to inform the company’s employees about
adaptation of the business model also required his strategy and the progress of the digital
adjustments in the workforce across business transformation. Secondly, the CDO generates and
functions. As a result, the CDO hired new, digital- disseminates business-critical information across the
savvy employees. publishing group and informs the management of
upcoming trends and developments. Thirdly, his
work is highly cross-functional as he supports and
4.4. Case 4 (Publishing)
coordinates different business units and functions,
such as the product units, e-commerce, IT and online
The CDO’s scope of tasks: The CDO position was marketing.
created in order to tackle the challenges the whole The CDO also acts as a leader, when conducting
publishing industry is currently facing. The ultimate workshops, which also include employee training
goal of the company is to stay “at the forefront of sessions in order to qualify employees for changing
future developments in the digital field, both inside requirements in their work. On top, he holds regular
the company and towards the customers”, which is staff events at the branch offices.
why the CDO was specifically hired to build the As a liaison, he attends networking events in order to
bridge between IT and business. connect with digital leaders of other companies.
The company has no CIO and the CDO holds
both positions himself. His scope of tasks includes
strategic initiatives regarding e-commerce, digital 5. Cross-case analysis and discussion
product development, marketing and sales, but also
the development of IT platforms. After describing each case individually, we
The CDO assumes typical IT management tasks performed a cross-case analysis. Table 3 summarizes
and is involved in all IT-decisions across the the interviewed CDOs’ managerial tasks and roles,
company. The product-related parts of the CDO’s which will be further discussed in the following
work disclose a high customer-focus. For instance, sections.
the creation of personalized products and a smooth
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Table 3. Overview of the interviewed CDOs’ managerial tasks and roles
IS Managerial Tasks IS Managerial Roles
Demand-side tasks: Entrepreneur
x Explores and implements digital x Defines the digital strategy
innovations and corresponding strategic x Strategically exploits technological opportunities
opportunities x Implements digital innovation
x Creates a seamless and personalized Spokesperson
customer experience x Coordinates and drives the digital transition across the
Case 1
services in close collaboration with x Spreads information regarding the digital transformation
potential customers across the company
x Personalizes products and services Leader
x Hires new, digital-savvy employees
Liaison
x Works together with potential customers
Demand-side tasks: Entrepreneur
x Increases digital revenues x Defines the e-business strategy
x Develops new digital products x Conceives the strategic direction of the company
x Personalizes products x Adapts the existing business model
x Creates a seamless customer experience Spokesperson
Supply-side tasks: x Disseminates information across the corporate group
Case 4
x Enhances process efficiency x Informs the company’s employees about the strategy and
its progress
x Crosses departmental boundaries
Leader
x Conducts workshops and employee training sessions
x Holds regular staff events
Liaison
x Attends networking events
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Our interviewees’ priorities are on demand- workforce, across departments and hierarchical
side tasks levels, to pull together. They need strong
communication skills in order to create a cohesive
The digital transformation in the investigated digital vision across all organizational silos. We infer
companies comprises strategic, communicational and that, as a spokesperson, CDOs communicate their
technical aspects. We have seen that CDOs do need digital strategy across the company and cross
some IT knowhow, but mainly strong skills in departmental boundaries in order to take the whole
strategy development, change management and company along on the digital journey. We learned
communication. This is due to the fact that CDOs can from the CDOs that the digital transformation is not
most often collaborate with an IT executive who an isolated process and affects many parts of a
takes on the technical aspects. The strategic and business. For instance, innovations affect IT, product
communicational aspects of the transformation development, HR, marketing, sales and other
process, however, fall in the sole remits of the CDOs. departments. It became clear that the digital
Overall, we see a strong focus of our four transformation requires a strong coordination of
interviewees on demand-side managerial tasks. Each different functional areas, leaving no more space to
of our CDOs explores IT-enabled innovations and previous silo approaches and mentalities. Yet, the
associated strategic opportunities for their companies, respective executives seem often concerned with
thus helping their companies innovate through the their own departments, unwilling to pull together. As
use of technologies. The main focus of the CDOs is the digital transformation requires the alignment of
on strategic growth, particularly on digital sales executives across functions, the CDOs need to work
revenue increase and market share growth. As across these organizational silos. We find that,
common in demand-side management, accordingly, the CDO’s job is both highly cross-
responsiveness to the market is of particular functional and interdisciplinary. CDOs need to be
importance in this context. The CDOs exhibit a able to analyze their companies across functions and
strong customer focus, aiming at the creation of understand different aspects of a business, such as
seamless and personalized customer experiences to business models, processes, technologies and
achieve their goals. This includes the collection and customer needs.
analysis of customer data in order to offer customers When bringing the whole company along on the
a personalized service at any touch point or to inform digital journey, the leader role manifests itself in two
product management, marketing and sales. To use the instances. Firstly, the CDOs hire new digital talents
words of the CDO of case 1, their goal is to create a to complement or replace parts of the existing
“digitally empowered and customer driven” workforce. To use the words of the CDO from case 2,
company. “it is critical to success to have the right people in
This does not mean, however, that CDOs cannot place”. Secondly, they train and motivate the existing
act as supply-side managers as well. In case 4, the employees to cope with the challenges and corporate
CDO explicitly talked about typical supply-side changes in the process of the digital transformation.
managerial tasks. This, however, is largely owed to As such, the CDOs are acting as “digital evangelists”
the fact that this CDO also takes on the role of the in their companies.
CIO and, as such, any IT-related issues in the Three of our interviewees also referred to
company. Yet, also the CDO of case 1 referred to activities which are related to the liaison role.
efficiency gains as one of his goals. His focus, However, these CDOs did not further elaborate on
however, is still on demand-side tasks and gains in these activities or mentioned them only on a side
efficiencies are used to transfer capacities to demand- note. The same applies to the monitor role, which
side tasks. was briefly mentioned by one CDO. Activities
relating to the resource allocator role were mentioned
Our interviewees’ priorities are on the roles of at no instance at all. We infer from this that the
the entrepreneur, the spokesperson and the leader liaison, monitor and resource allocator roles are not
the key roles in the work of the CDOs and that the
The role priorities of our interviewees are very CDOs’ priorities are on the roles of the entrepreneur,
similar. The CDOs establish a digital strategy and the spokesperson and the leader. As we noted above,
drive the necessary changes across the company, as Mintzberg [14, 15] reasoned that managers perform
such acting as an entrepreneur. For a new strategy to each managerial role, but they differ in the relative
be successfully implemented, it requires an importance they place on each role and in the time
appropriate corporate culture and underlying shared they allocate to performing them, based on job
values. Therefore, CDOs need to convince the whole content, skills levels and expertise.
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Our interviewees’ relationships with their 6. Conclusion, limitations and future
CIOs are symbiotic and interdependent research
The area of responsibilities in the course of the
digital transformation seems to have reached a level Although the position of the CDO has been
of complexity that makes it increasingly difficult for established in many companies around the world,
one person to assume alone. Accordingly, we found there is still confusion about what CDOs actually do
and how they can complement CIOs. We addressed
that CDOs and their respective IT executives clearly
these issues and provided first insights into the
distinguish between their responsibilities. Across our
cases, the CDOs are responsible for the strategic and managerial tasks and roles of CDOs across different
communicational aspects of the digital industries. Overall, we found that CDOs serve as
transformation, while the focus of CIOs/CTOs is on catalysts for change in their companies. Fitzgerald et
the technical aspects. al. [1] uncovered that 63% of executives and
managers find that “the pace of technology change in
To implement (new) platforms and underlying
their organization is too slow” (p. 2) and that cross-
infrastructures, the CDOs of the cases 1 and 2 work
closely together with their CIOs. Both made department authority for digital initiatives is a means
explicitly clear that the CDO is responsible for by companies to overcome this issue effectively. We
developing the digital strategy, executing the digital saw in our case studies that CDOs are the ones being
transformation across the company and taking the established to proactively drive the company’s cross-
functional digital transformation. They take on (1)
entire company along on the journey. The CIO, in
the strategic aspects of the digital transformation,
turn, is responsible for the implementation of the
corresponding IT and the evolution of platforms and devising and implementing digital strategies as
IT systems, thus making sure that all technical entrepreneurs and (2) the communicational aspects,
requirements for new platforms and applications are countering cultural resistance in their companies as
spokespersons and leaders. The CIOs, in turn, always
in place. Both CDOs stated that a close collaboration
focus on the technical aspects of the transformation.
with their CIOs is necessary to successfully transform
the company. In these cases, the relationship between This implies that the roles of the CDO and CIO
CDO and CIO seems to be a symbiotic and differ. Their relationships are symbiotic and
interdependent one, yet, with a clear distinction interdependent, yet with a clear distinction between
between responsibilities. their responsibilities.
Further research is needed to investigate the
Nonetheless, overlaps in responsibilities may occur.
variables on which the collaboration with the CIO
For instance, the CDO of case 4 takes on both the
CDO and the CIO position simultaneously. He depends and to explicitly compare the specific tasks
clearly distanced himself from the “typical CDO adopted and roles performed by CDOs and CIOs.
role”, stating that, “commonly”, CDOs and CIOs Both issues go beyond the research goal of this paper
coexist, with the CIOs servicing (new) infrastructures and should be addressed in separate studies.
The empirical insights we generated are relevant
and applications and the CDOs contributing a strong
for both scientific researchers and practitioners. On
customer perspective to the digital transformation.
The CDO of case 3 acts somewhere in the middle of the one hand, we wish to start a scientific debate on
the spectrum between the CDOs of the cases 1 and 2, IS organizational issues of the digital transformation
which closely collaborate with their CIOs, and the and we laid the foundation for research on the CDO
CDO of case 4, who takes on both positions as one manifestation thereof. On the other hand, we
want help managers understand how CDOs can
simultaneously. Not having another C-level executive
in his company, he works together with the CTO of contribute to firm success and how they can
the corporate group. complement the CIO.
We made two further observations in this context. We acknowledge some limitations of our study.
Firstly, the CDOs and CIOs are established on the Being a qualitative study, generalizing our results is
only possible to a limited extent [32]. We partially
same hierarchical level, all of them reporting directly
address this limitation by choosing a multiple case
to the CEO, which highlights the equal ranking of the
positions. Secondly, we observed that the companies study approach [33], which included companies
3 and 4, which do not have a separate CIO, are operating in different industries and of different sizes.
distinctly smaller than the companies 1 and 2 and that On top, we triangulated our interview data with
their CDOs take on more technical aspects of the secondary data. Still, our sample size is small. To
mitigate this shortcoming, we purposefully selected
transformation themselves.
the companies and followed theoretical replication.
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Our study reflects only a snapshot in time as the European Conference on Information Systems, 2006, pp.
CDO position has only recently been introduced. 1232-1243.
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