A Chief Information Officer is generally considered to be a company’s top executive for the management and implementation of computer technologies. As technology continues to advance, they often work alongside the Chief Technology Officer (CTO) and now focus primarily on internal technology and systems. Here we’re going to take a look at the importance of the CIO in organizations today and how this position is only continuing to develop as technology advances.
What Does a Chief Information Officer Do?
A CIO is a company’s executive that’s responsible for the use of computer technologies within an organization. As technology is continuing to develop, organizations worldwide are looking for ways to implement new technology and improve the systems they are currently using. A CIO will work to lead the technology strategies for a company and work alongside C-level executives to support them in the business’s overall success. They also work as an in-between for the technology department and the other executives in the business.
Is a CIO the same as an IT Director?
No, CIOs are generally more focused on leadership and strategy, whereas IT directors will concentrate on the day-to-day operations of the business. Many IT directors are positioned underneath the CIO in the organization and will report directly to them. Oftentimes, the CIO will be the global leader for the technology department, whereas the IT Director may be a national or regional position.
What is the Difference between the Chief Technology Officer and the CIO?
Quite often, the CTO will report directly to the CIO, but in large corporations today, this isn’t always the case. The positions will vary from company to company, depending on the technological requirements for the business. The CIO will often look at the technology strategies for the company, whereas the CTO will be more focused on innovation and emerging strategies that the business could use. Oftentimes, the main difference is that the CIO focuses on internal technology, whereas the CTO is more interested in products that will be sold to consumers in the future and acts as a face of the company. However, in many companies today, there are certain overlaps and similarities between the two positions, which is why you will need to pay close attention to job descriptions when applying for either of these roles.
What Does the CIO Do?
A CIO will run a company’s IT department, however, they often aren’t so focused on the day-to-day processes and will leave this to their leadership team. This offers them the time they need to work on the data center and ensure systems are working effectively. On top of that, they’ll work to understand emerging technology trends and see how they could impact the business in the future. When there are issues with systems or servers within the business, the CIO will be one of the first points of call to ensure the issue is fixed immediately.
A CIO will set the strategy for IT within the business, and this will then work alongside the overall business strategy. The CIO will need to have a good understanding of the business as a whole, which they can then use to educate and inspire their team. They will also be heavily involved in budgeting for the technology and IT usage within the company.
CIO Job Requirements
When applying for a CIO job role, it’s important that you can demonstrate certain hard and soft skills. Firstly, a CIO will need to be a strong leader and able to run the technology and IT side of the business independently. You’ll need to understand how a company works from the very top employees down to the entry-level employees. CIOs will need to have a good understanding of technology and keep an eye on changing trends. Within just two to three years, technology can advance dramatically, which is why this is so important for CIOs to keep on top of.
As CIOs are generally concerned with technology, many of them come into this role with MBAs or experience running a business. Almost all of them will possess a degree in computer science, IT management, or computer information systems, and then maybe a master’s degree in business on top of that. They need to have a greater understanding of marketing and sales, as well as user expectations and needs. Although most CIOs have a technology background, they also must possess the communication skills to share with employees at all levels the changes and advances that are being made. While CIO salaries vary greatly, you can expect a large corporation to reward this position well. In smaller companies, you may find the position is named something else, such as an IT manager, while still performing similar duties.
Who Does a CIO Report To?
While most other executives report to the CEO directly, this isn’t always the case with the CIO. Deloitte found that about a third of CIOs were reporting to the CEO, but others were directly reporting to the Chief Financial Officer. Some even report to the COO, and other companies employ a global CIO which they then report to. Alternatively, some companies encourage this position to report to multiple executives, depending on the current needs and initiatives being undertaken. While most people would assume that the IT leader in a company would report to a CEO, they may choose to report to the CFO to ensure budgeting remains on track. This is especially true for companies who are on a tight budget or have concerns about overspending previously. IT team members in smaller companies will generally have more access to board members than in larger corporations.
The CIO position is continuing to grow and develop as technology changes, and we can expect to see many advancements in the future in this area. With more pressure being put on companies today to keep up with the growing technology demands, we can only assume this position will become more prominent in the future. It’s certainly an excellent career route for anyone interested in computing and technology to follow, offering a C-level position while still working in the field you are experienced in.
