Role of CDOs in the Digital Transformation of SMEs and LSEs - An Empirical Analysis

Abstract

In recent years, the economy and companies of all sizes operating within it have undergone a progressive transformation that implied increased market complexity and dominance of the buyer market. This development is the result of the "third industrial revolution" and has been fostered during the last 40 years by major innovations in digital computer technology. This first "digital revolution" resulted in the development of the first computers and the associated entry of new electronics and information and communication technology (ICT) in companies being able to automate production processes and make them more efficient. Digitalization means not only the change of individual processes rather the fundamental transformation of entire business areas or the entire business model. In order not only to master, but also to cope with, the challenges of digital transformation, companies need a member in the management board that provides specific expertise and encourages these digital changes. In the process, the position of Chief Digital Officer (CDO) has been created precisely to meet these challenges of the digital transformation of a business model. The present work is based on various case studies analyzing what role the CDO plays in the framework of digital transformation in various company sizes (SMEs and LSEs). In particular, the responsibility, specific obligations and rights and the role - namely, functions and tasks - and the change in the role have been examined since taking over the position.