Chief Data Officers (CDOs) have become crucial for businesses needing to harness the power of their information. But what if your mid-sized industrial or service company doesn’t have a CDO in place? Are you destined to fall behind as your competitive environment grows increasingly data-driven?
Recently, AWS released a comprehensive report, Navigating Data and Generative AI Frontiers, which looks at the most pressing issues for CDOs guiding companies through the complexity of data management amid advancing AI technology.
The report doesn’t reveal any unexpected insights, at least for companies that already understand the value of business intelligence. However, it does highlight how important it is for your leadership to understand the value of data as a difference-maker. You need an assortment of skillsets to extract the most value from your business information — and that combination at the executive level comes at a significant price.
For many mid-market companies, hiring the right CDO is time-consuming, difficult, and prohibitively expensive. However, as you look to set your organization on a path toward establishing and maintaining a data-driven culture, you have more flexible and impactful options at your disposal.
The Evolving CDO Role and Mid-Market Challenges
According to the AWS report, CDOs face several pressing concerns heading into 2025, including:
- Creating visible value from data initiatives.
- Clearing roadblocks to finding the right uses for generative AI.
- Developing and implementing a comprehensive data strategy.
- Ensuring data quality across the organization.
- Establishing robust data governance frameworks.
- Building and maintaining a data-driven culture.
For mid-market companies who may not have a CDO, these challenges are just as relevant. Without dedicated data leadership, many organizations struggle to align their data practices with business objectives, resulting in missed opportunities and competitive disadvantages.
These challenges are far from revolutionary – they’re fundamental aspects of data management that every business must address to remain competitive. The difference lies in how organizations approach the challenges of data quality, data strategy, and building a data-driven culture to support their specific needs and resources.
The Fractional BI Advantage for Mid-Market Companies
To fulfill the duties of a CDO, you essentially need to hire someone with several different areas of expertise. Along with keeping a finger on the pulse of the industry, you also need to ensure any CDO can manage the organizational and technical demands of the role.
Rather than attempting to find a full-time C-suite hire with all these necessary skills (a challenge even for large enterprises), mid-market companies see real advantages by working with Blue Margin as your fractional business intelligence partner.
A key focus for CDOs is creating visible value from their efforts — and that goes for us as well. Working with a dedicated BI partner like Blue Margin offers key advantages:
1. Clarifying Business Rules Across Your Organization
One of the most common challenges in data management is ensuring consistent definitions for the business rules that define your KPIs. Even what seems like a simple metric — revenue, for instance — can be thought of differently depending on the department you ask.
Does each department factor discounts into revenue totals? What about bad debt? Without bringing these fundamental definitions into alignment, you place your teams at risk for basing their decisions based on inconsistent information.
An experienced BI partner will have the expertise to identify these discrepancies and establish consistent definitions, either by labeling definitions differently or creating dashboards tailored to specific stakeholders.
2. Comprehensive Data Governance Without the Overhead
Effective data governance – a framework of policies and standards to ensure your data remains trustworthy – is essential for any business. However, establishing these frameworks requires specialized knowledge and dedicated resources.
We specialize in developing robust governance structures tailored to your specific business needs. This includes details such as defining data ownership, establishing quality standards, and creating processes for data access and usage. Plus, our fractional BI service provides the higher-level CDO-type adviceyour organization needs while also having the expertise to implement the tools and infrastructure to support your goals.
3. Continuous Improvement and Adaptation
The initial delivery of your business requirements is just the beginning in the world of BI. As soon as your users start interacting with dashboards and reports, they inevitably identify new opportunities for enhancement.
A fractional BI team provides the flexibility to continuously iterate, making improvements and addressing emerging needs. When you work with Blue Margin, you gain the shared expertise that enables you to resolve problems in ways a small internal team led by a CDO may struggle to approach.
4. Cross-Industry Expertise and Best Practices
Internal teams are limited by their exposure to your specific organization’s challenges. Put another way, they only know what they know about your business.
In contrast, a dedicated BI partner brings experience from similar implementations across industries. This breadth of experience allows us to identify patterns, apply solutions, and anticipate challenges that might not be obvious to those within your organization. The result is faster problem-solving and more robust implementations that benefit from lessons learned.
The Generative AI Promise and Reality Gap
One area where the findings in the AWS resonate is the ongoing uncertainty surrounding generative AI analytics. CDOs across industries express enthusiasm about AI’s potential to amplify the value of a business’ data, but its application has so far proven to be limited.
The reality is that generative AI analytics, while potentially powerful, isn’t a magic solution. It requires clean, well-structured data and clear business rules to deliver meaningful results. But even with that sturdy foundation in place, the technology is still too nascent for the average business person to be able to easily use.
This doesn’t mean that there’s no place for AI in current data strategy. Along with pinpointing problems in code, we’ve begun testing an AI-powered internal tool we developed for our engineering team to make it easier to access data in the lake with simple requests. We ask the tool a natural language question and it will build a SQL query delivering the raw data needed to get to the answer.. This could end up being a game changer for analysts and auditors looking to easily extract information from a complex data lakehouse
The Cost-Benefit Advantages of a Fractional BI Team
For mid-market companies weighing their options for data leadership, a fractional BI team offers a compelling argument. At approximately the cost of one skilled full-time hire, a fractional BI partnership with Blue Margin provides access to full team expertise that includes:
- A client success manager who understands your business objectives.
- A data architect to design and implement robust back-end data infrastructure.
- Visualization consultants who model data and create intuitive, actionable dashboards.
We meet with your stakeholders to translate your goals and problems into targeted dashboards to help you quickly identify problems or opportunities.
Manage the Infrastructure Behind the Interface
When considering your data strategy, think of a fractional BI service as what you want to see in a newly constructed house. What matters to most people are the visible elements – the lights that come on when you flip a switch, the water that flows when you turn a tap. But these functions depend entirely on high-quality work behind the walls.
The same principle applies to your data architecture. Users care about the insights they can access through dashboards and reports, but those insights are only as reliable as your underlying infrastructure. This includes:
- Well-designed data models that accurately reflect business relationships.
- Clean, reliable data with appropriate quality controls.
- Clear data governance with consistent business rules and definitions.
- Efficient data pipelines that integrate and continuously update data from diverse sources.
- Scalable data lake storage and compute that balances performance and cost.
- Organizational training to build and sustain a data-driven culture.
It’s essential that your business handles these infrastructure details well because you can’t make good business decisions based on bad underlying data. If your team uses your data and gets a wrong answer, they’ll hesitate to use it again. And your work to establish a data-driven culture in your business will struggle.
However, Investing in this “behind the walls” infrastructure pays dividends beyond your current reporting capabilities. You also future-proof your business as AI analytics continues to improve. When natural language interfaces grow more sophisticated and accurate, organizations with strong data foundations will be positioned to adopt them quickly and effectively.
Does this sound like a service that will benefit your business moving forward? Let’s talk about what we can do for you.