Is there a case for appointing a Digital Transformation Officer?

While a company that relies on analogue processes may benefit from a dedicated digital transformation officer (DTO), it is often not in a digital-aligned company’s best interest. A company-wide commitment with a group of senior digital transformers may be more effective than assigning the job to one person and may deliver better results, says Stefano Maifreni

When you look at the C-suite, you can see which direction the business is heading by the appearance of new positions such as the Chief Transformation Officer, the Chief Change Officer, and the Digital Transformation Officer (DTO). These jobs respond to rapidly changing markets and customer trends and a flood of technological advances that force businesses to rethink their operating procedures.

The DTO is a specialist in an organisation’s digital strategy and transformation. A company doesn’t necessarily need to hire someone for this position, but it’s usually better to involve all senior executives and lead the company’s digital transformation as a team.

Here are some points to ponder when deciding whether to hire a DTO.

What is a DTO, and what do they do?

A robust digital infrastructure combined with a data-driven culture is crucial to a company’s success and sustainability. Smart and automated IT systems allow organisations to personalise, adapt, and innovate. These systems capture and analyse data to assist decision-making, resulting in and feeding a data-driven culture.

Establishing a data-driven culture, however, requires time, research, and consideration. A DTO is a member of a company’s senior management team dedicated to leading the company’s digital transformation in response to the emergence of new critical technologies, significant shifts in the market, or the development of new enterprise products or services. The CEO and the C-suite are heavily involved, but the DTOs also must collaborate with employees at every level of the company.

Three necessary qualities to look for in a DTO

You must pick a DTO with the skills and experience to steer your organisation through a successful digital transformation. Choose someone with several essential qualities and technical and industry knowledge. These qualities include:

1They see the big picture

Someone who can see the big picture of your company and assess its most critical areas is crucial. They can use digital initiatives to transform essential business processes to improve performance. Customer experience and needs are used as the agents and drivers of change and the DTO must look closely at mapping the customer journey. However, a good DTO also considers the company’s distinct requirements and culture, balancing employees’ needs for consistency, stability, and clarity with company-wide demands for change and adaptation. It requires understanding of how individuals and departments interact and how third-party vendors and service providers are incorporated. 

2They have excellent communication and collaboration skills

The ability to communicate and collaborate is crucial to this role. A wide range of soft skills are required, but communication and collaboration are at the top of the list. DTOs must be able to speak to every person in the company, from customer service representatives to the CEO. Gathering information and feedback is crucial for this role, but so is encouraging employee participation. Listening to what others say or report honestly is an essential aspect of communication.

3They are open to learning from others and humble

The role includes collecting input from employees of all company levels, especially those directly involved with customers, such as sales and customer service representatives. To succeed, a good DTO must be open to learning from others, considering alternative ideas and thinking, and willing to course-correct if an initiative goes off track.

Not every company needs a DTO

While many firms want to transfer the obligations of a DTO to a specific individual so they can concentrate on other aspects of the business, this may not be the most suitable choice. The following are a few causes:

• Unlike conventional C-Suite roles, the DTO is designed to be transient. The DTO is no longer needed once the digital transformation has been fully integrated into the company’s operation.
• Digital transformation and innovation self-perpetuate once the infrastructure and data-driven culture are in place.
• An outsider might be hired to fill the DTO position. While this might provide the firm with a fresh perspective, an outsider working in a transitory job might not be willing or able to reach the level of understanding required to make the most suitable choices, whether about the company or the market it serves. They might also not fit with the current company culture and collaborative working with colleagues may be a challenge.
• Senior leaders can improve their strategic decisions by directly participating in digital transformation because infrastructure and adaptability are digital competencies.

While a company that relies on analogue processes may benefit from a dedicated DTO, it is often not in a digital-aligned company’s best interest. A company-wide commitment with a group of senior digital transformers may be more effective than assigning the job to one person and may deliver better results.