What does he/she do? The CDTO is, first and foremost, a strategist. The manager's responsibilities include developing strategies for the company's digital transformation, ensuring data availability, and implementing measures to transition to domestic software. The list of tasks depends on the specific specialization.
In this article:
History of the CDTO (Digital Transformation Leader) Profession
Demand for Digital Transformation Leaders in Russia
Difference between CDTO, CDO and CIO
Key Tasks of a Digital Transformation Manager
Specializations of Digital Transformation Leaders
When Digital Transformation Leaders Are Not Needed
Competencies and skills of a digital transformation manager
Examples of tasks for a digital transformation manager
CDTO training
Challenges Faced by Digital Transformation Leaders
CDTO (Chief Digital Transformation Officer) Frequently Asked Questions
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History of the CDTO (Digital Transformation Leader) Profession
The evolution of the position of executive director for technological innovation began in the late 90s. Large companies increasingly realized the importance of integrating advanced technologies into their work processes: they actively modernized interaction with clients through digital platforms, created effective information systems, and implemented electronic document management. Company owners began to understand that the success of future strategies depended on the ability to use data to the fullest extent.
History of the CDTO (Digital Transformation Leader) Profession
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In 2011, a new position appeared in New York City: Chief Digital Officer (CDO). The position required a combination of high technical skills and a deep understanding of business in order to be able to successfully operate in a dynamically changing market. By 2013, more and more companies around the world were showing interest in the profile of a leader who specializes in digital technologies.
Experts from Gartner recently conducted a study in the field of corporate business and came to the conclusion that in the near future 19% of companies plan to begin searching for a chief data officer (CDO), and 17% of organizations are already actively recruiting specialists in this area.
The analysis showed that the role of the CTO is often ambiguous: companies increasingly need experts who can not only manage the information infrastructure, but also implement innovative technologies that can change the dynamics of the market.
In 2017, large Russian companies began to actively take an interest in this position. By the end of 2018, the role of the technology director undergoes significant changes, and now he is required to have an increasingly broad impact not only on internal but also on external business processes.
In 2018, Russia launched the National Initiative “Digital Evolution”, aimed at implementing digital transformation by 2024. Representatives of federal agencies leading the digitalization process are actively introducing innovations in various sectors of the economy.
The document shows that the transition to a digital format is necessary not only in the sphere of large businesses, but also in every government institution. Leading Russian companies are already looking for specialists in the field of digital transformation.
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Demand for Digital Transformation Leaders in Russia
At the beginning of 2021, doubts began to be expressed in Russia about the need to retain departmental managers responsible for digital transformation. Due to shortcomings in their activities, 10 out of 62 high-ranking officials will be replaced. One of the key arguments in favor of this decision is a rating assessing the ability of personnel provision and the effectiveness of the implementation of projects in the field of artificial intelligence and blockchain technologies.
Digitization issues are not only affecting the public sector. In May 2021, software developer Qlik conducted a study to assess data competency. The organization considered how comfortable employees of various levels of specialization, from beginners to professionals, are working with information of personal experience. It was also important to find out how relevant the topic of professional work with data is for users in Russia.
As a result of the analysis of responses from 1,500 subjects, it turned out that only 11% of them can competently analyze information and apply it in practical activities. Among decision makers in the field of business management, from junior managers to top managers, only 24% are confident in their ability to "read" data, work with it, and analyze it.
An important finding is that 78% of respondents are willing to spend more time improving their information skills.
In the era of the digital economy, technology is integrated into various spheres of life. It is used in almost any activity: from document processing to diagnosis. Traditional systems that require manual filling of huge tables are becoming unusable due to the colossal volume of information. This data processing process can be completely automated, and the slogan of Alibaba Group founder Jack Ma “Information is the new gold” only increases its relevance.
Demand for Digital Transformation Leaders in Russia
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Countries with developed economies such as South Korea, Germany, Switzerland are already implementing digital solutions in the sphere of public services.
For example, in Switzerland, citizens can access government services through the universal SwissPass platform, which provides access to more than 250 electronic services. And virtual assistants work on the Internet portals of government agencies, which reduces the load on contact centers. In Russia, a similar technology is implemented on the State Services portal. Russians can receive almost 300 services electronically in various areas of life.
In 2019, the contribution of the digital economy to the total value of goods and services produced in China reached 36.2%. On the other hand, in Russia this figure is much more modest, amounting to only slightly more than 2.2%. According to forecasts from the Analytical Center, which belongs to the federal government, by 2030 the gross domestic product of the Russian Federation will increase by 23%, partly due to the active development of digital technologies.
Today, this process continues to grow. Experts from the financial company Finam predict that by 2025, the total costs of digital transformation in Russia will exceed 1.2 trillion rubles. Experts highlight cybersecurity, payment solutions, cloud services, and semiconductor manufacturing as key areas of digital progress.
According to a study by the Higher School of Economics, in 2021, only 6 to 18% of Russian companies implemented digital innovations. It is predicted that by 2030, this figure will increase fivefold and will amount to at least 75% of the total number of enterprises.
Despite the relatively recent start of the digital revolution in Russia, certain sectors of the economy are already showing impressive results on the global arena of transformations. The fintech industry in Russia is leading among European countries in terms of digitalization. Users in Russia are happy to accept digital changes in the financial sector, quickly adapting to new, more convenient solutions.
In light of modern challenges, the demand for digital transformation specialists is increasing. At the moment, the importance of the role of chief digital transformers is obvious in high-level Russian corporations such as Russian Railways, Sberbank, Yandex, Severstal and others.