Chief data officer and the critical role for data handling in utilities – EY

Energy and resource companies should hire a chief data officer to remain competitive with faster decision making, EY reports.

The report, which is focussed on the Canadian market but is applicable equally elsewhere given the similarity of data and other utility challenges, states that hiring a chief data officer is one of the most effective steps companies can take to determine how data will be used and governed throughout the organisation.

According to the report, almost two-thirds of data intensive organisations in areas including finance, healthcare and consumer goods reported having a chief data officer in 2021, compared with just over half in 2012.

However, in Canada – and elsewhere – energy industry players have only just started to fully appreciate the value of data moving forward and many have not placed enough emphasis on the chief data officer role.

The report defines seven job types for the chief data officer, with the particular role for an organisation depending on its needs and possibly requiring more than one individual to fulfil.

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These are:
● Data and analytics officer to manage the data science and analytics functions
● Data entrepreneur to monetise data
● Data developer to develop data applications
● Data defender to protect and secure data
● Data architect to modernise and upgrade the data environment
● Data governor to understand data strategy and governance
● Data ethicist to manage data collection, protection, sharing and control.

Ultimately all chief data officers are expected to derive the maximum business value from the data available to the enterprise, the report notes, citing benefits and opportunities including more accurate consumption forecasting for improved power generation planning and analysis for improved asset management decision making.

Others mentioned include AMI and data providing more information and control of energy consumption and a reduced impact of outages through predictive modelling and more accurate repair dispatch.

“The energy and natural resources sector faces significant challenges, the biggest being the gradual decrease in non-renewable energy usage expected over the next few decades,” commented Lance Mortlock, EY Canada energy leader.

“The growing focus on energy efficiency, the electrification of the transportation sector and carbon pricing policies will add even more complexity. These trends combined with the volatility in today’s energy and commodity markets means these organisations must make faster and more intelligent business decisions. This will require a more sharpened focus on data driven capabilities.”

Set up for success

In terms of recommendations the report says companies, when hiring chief data officers, should set them up for success. They should be provided with a clear definition of their role, granted executive status and reporting structures and allowed to be autonomous and dynamic.

They also should be provided with reasonable timelines and expectations.

Moreover, when undergoing digital transformation, data governance should be decentralised and embedded throughout the organisation.

Data is most effective when it is used by each functional unit of the business as an enterprise-wide asset. To effectively implement a decentralised data governance model, the chief data officer must be able to effectively disseminate a data-driven culture, the report concludes.