For example, in PAO Severstal, the company's digital development is ensured by four structural divisions: the Digital Transformation Office, Severstal-Infocom, Severstal Digital and the Severstal business system. In the financial holding Severstal, the implementation of Big Data, IoT/IIoT and Machine Learning to optimize production processes lies on the shoulders of CDTO.
In other words, the head of digitalization tests the latest technological solutions and strategies, launching experimental initiatives to obtain financial benefits. In a similar vein, at Gazprom and VTB, the main goal of the head of digitalization is to identify and test promising concepts.
However, the CDTO's area of competence covers all taiwan business email list sectors of the organization, while the CIO focuses only on the IT service. Therefore, we cannot agree with the assumption that the CDTO will eventually take over the CIO's position entirely.
Due to the wider range of tasks performed by the digitalization manager, this position requires a high level of specialized knowledge and analytical expertise. For this reason, corporations highly value such high-class managers in the labor market.
For example, according to the Financial Times, a chief technology and digital development officer can earn up to half a million pounds a year. In Russia, the monthly salary of a digitalization manager ranges from 750 thousand to 1.2 million rubles. In addition to unique skills and qualification requirements, such high amounts are determined by the shortage of such top managers and the increase in demand for them.
This is why most companies choose to develop their Chief Technology and Digital Officers within their own organizations, while raising the level of their CIOs, CFOs, CMOs, and other senior executives.
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CDTO training
The documentation on the use of digital strategies in public companies was approved by the Ministry of Digital Development, Communications and Mass Media in 2020. According to this document, public companies should appoint a head of digital transformation with a similar position of CDTO or CDO, as in Western organizations.
The main task of such specialists in public companies is the implementation of IT systems and machine learning to automate processes or create new business models.
CDTO training
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The government has already decreed that by September 1, 2021, all public companies must develop digital transformation strategies and appoint a person responsible for digitalization. At the moment, companies such as Russian Post, Russian Railways, Aeroflot, Alrosa and Gazprom Neft already have digital transformation specialists who have developed detailed project plans for transformation.
The first successes are already visible. At Russian Post, electronic services have accelerated the process of parcel delivery. Now, customer identification at branches is not done using a passport, which used to take a lot of time, but by sending an SMS or push notification. Russian Railways has launched the digital system Intertran, which accelerates the transportation of containers. Electronic registration of shipments has reduced the time it takes to issue documents at Russian Railways by four times.
However, the CDTO position in Russia is still considered new, and most universities have not yet opened a specialization for this. Courses for future CDOs or CDTOs are available at the Higher School of Economics, MGIMO, and RUDN. Students are top managers of large companies or plant managers. RANEPA has already begun training digital transformation directors who will implement the necessary solutions in practice.
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Challenges Faced by Digital Transformation Leaders
Digital transformation managers (CDTOs) face a range of challenges associated with integrating digital technologies into the business environment.
Mastering the art of working in a changing environment
One of the key aspects of the challenge is the need to adapt existing business processes to new scenarios. Digital transformation leaders must master working with a workforce that is undergoing change.
Maintaining calm and focus in a chaotic situation, providing innovation management in the organization is the definition of being a change master. This will allow you to take successful steps in the digital transformation process in an environment of constant change.
Lack of staff
Digital transformation requires specialists with specific skills that are not always easy to find in the employment market.
Organizations regularly change their strategies and priorities, which can lead to increased internal movement and difficulties in finding professionals, and retaining promising specialists can be costly and require large financial investments.
Lack of energy, involvement, and trust in the team
Lack of motivation among team members: Employees may not show sufficient passion and interest in performing their duties, which may result in a decrease in the efficiency and quality of the work performed.
Lack of understanding among team members: When a group lacks understanding among team members, it can negatively impact teamwork performance as colleagues may feel afraid to share their thoughts and suggestions.
Lack of communication: Without effective communication between team members, there may be disagreements and disagreements, which also reduces employees’ desire to participate in work processes and their motivation.
Lack of energy, involvement, trust in the team
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Lack of creativity and innovation: If a group does not feel confident in being able to freely express their initiatives and come up with innovative ideas, this can lead to a lack of innovation and stagnation in the development of the organization.
Obstacles to managing disagreements: In-team clashes can have a negative impact on employee participation and the overall team atmosphere. The CDTO must be able to manage disagreements productively and resolve them through compromise solutions.