What makes a Chief Digital Officer successful?

Purpose: A new IBM Institute for Business Value (IBV) study has now found that the appointment of a CDO–along with a robust digital transformation program–is strongly correlated with stronger corporate financial performance. Design/methodology/approach: IBM IBV surveyed more than 1,500 business executives in 23 countries and across eighteen industries, of which 750 were CDOs. Based on our analysis, we have created a framework to determine under what circumstances it makes sense to appoint a CDO, and if a CDO is appointed, the set of CDO characteristics and responsibilities that are most likely to yield maximum business benefits and returns. Findings: The analysis indicates top CDOs’ strongest characteristic is actually business strategy, not technology. The data indicates there is a higher positive financial impact when a CDO reports to the CIO—not when they report to a CEO Practical implications: Top CDOs take a balanced approach toward transformation. They seem to be evolutionaries and not revolutionaries. Originality/value: The study found that, contrary to conventional expectations, CDOs most valuable skill could well be their ability to think and act strategically.