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Data-Driven Leadership: A Progress Report on the State of Corporate Data Initiatives

Strategic Insights

— 2 min read

As part of its annual survey, NewVantage Partners has released the results of its 2022 Data and AI Leadership Executive Survey, focusing on the quest to achieve data-driven leadership and the state of corporate data initiatives. The survey reflects a record number of participating organizations, including a broad range of Fortune 1000 companies. Notably, 77.0 percent of respondents hold the role of Chief Data Officer or Analytics Officer (CDAO), highlighting the growing importance of data-driven leadership. The survey reveals a mix of progress and challenges in achieving data-driven leadership, with organizations facing significant cultural, technological, and leadership hurdles.

Key Takeaways:

  • Investment in data and AI initiatives continues to grow, with 97.0 percent of participating organizations investing in data initiatives and 91.0 percent investing in AI activities.
  • 92.1 percent of organizations report realizing measurable business benefits from their data and AI initiatives, a significant increase from 48.4 percent in 2017 and 70.3 percent in 2020.
  • Achieving data-driven leadership remains an elusive aspiration for most organizations, with only 47.4 percent competing on data and analytics and 39.7 percent managing data as an enterprise business asset.
  • AI initiatives are accelerating, but implementation of AI into widespread production remains low, with only 26.0 percent of organizations using AI on a widespread basis.
  • Becoming data-driven requires an organizational focus on cultural change, with 91.9 percent of executives pointing to culture as the greatest impediment to achieving this business outcome.
  • The Chief Data and Analytics Officer (CDAO) role continues to grow and evolve, with 73.7 percent of organizations appointing a CDAO, but 59.8 percent still experiencing turnover and instability in the role.
  • The CDAO role is focusing on business growth and analytic outcomes, with 44.3 percent of CDAOs coming from a data analytics or data science background.
  • Data ethics will be the next major frontier for leading organizations, with only 44.2 percent of organizations having well-established policies and practices in place governing data and AI ethics.

Statistics:

  • 94 Fortune 1000 or leading organizations participated in the survey, a record number.
  • 77.0 percent of respondents held the role of Chief Data Officer or Analytics Officer (CDAO).
  • 97.0 percent of participating organizations are investing in data initiatives.
  • 91.0 percent of participating organizations are investing in AI activities.
  • 92.1 percent of organizations report realizing measurable business benefits from their data and AI initiatives.
  • 47.4 percent of organizations are competing on data and analytics.
  • 39.7 percent of organizations are managing data as an enterprise business asset.
  • 26.0 percent of organizations are using AI on a widespread basis.
  • 95.8 percent of organizations have AI initiatives that are underway in pilot or limited production.
  • 91.9 percent of executives point to culture as the greatest impediment to achieving data-driven leadership.
  • 73.7 percent of organizations have appointed a Chief Data and Analytics Officer (CDAO).
  • 59.8 percent of organizations experience turnover and instability in the CDAO role.
  • 44.3 percent of CDAOs come from a data analytics or data science background.
  • 44.2 percent of organizations have well-established policies and practices in place governing data and AI ethics.

Sources:

  • NewVantage Partners, "The Quest to Achieve Data-Driven Leadership: A Progress Report on the State of Corporate Data Initiatives" (2022)
  • Thomas H. Davenport and Randy Bean, "Competing on Analytics" (2010)
  • Close Up Media, "NewVantage Partners Releases 2022 Data and AI Leadership Executive Survey" (2022)

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