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The SearchCIO.com team has compiled its most effective, most objective, most valued feedback into this single document that’s guaranteed to help you better select, manage, and track IT projects for superior service delivery. "A couple of years ago, I would have told you the CDO was more fly-by-night -- that we'd see them pop up for a couple of years and then fade away. But now that we're seeing them run significant business units -- the fact that they're called a 'CDO' may change, but, ultimately, the role will remain the same," said Gerry Murray, researcher and consultant at IDC and author of the recently published report "Chief Digital Officers: Bridging the Innovation Gap Between the CIO and CMO." In some cases, chief digital officers (CDOs) are building what Murray calls an "insights as a service" business within the organization where they're providing customers with data, analytics and other digital products and services that never existed before. Take Caterpillar Inc. The manufacturer of heavy, industrial machinery "will never stop making big, yellow trucks," Murray said. But by collecting and analyzing, say, GPS data, weather data or sensor data from connected equipment to help customers improve operational efficiencies , Caterpillar's CDO Sanjeev Addala (who Murray interviewed for his report) is doing more than embracing digital -- he's introducing a new and radically different revenue model to the 90-year-old company. Rather than heavy machinery, which tends to have long and capitally intensive production cycles, the revenue model for a data service like predictive maintenance is the exact opposite -- low cost, high value digital products with short production cycles, Murray said. The challenge for companies is figuring out how to support both models, what Murray described as a "portfolio approach" to innovation, under one roof. Murray pointed to Caterpillar as a leading exemplar of this bimodal approach . Not only is it keeping an eye on where venture capitalists are investing in the industry and investing in startups, the company also recognizes that there is "a different skill set, culture and cadence to running an information and data software-based value proposition for your customers than heavy equipment," he said. And Caterpillar is investing in those areas as well.
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