With technology continuing to develop at a rapid rate, the role of the Chief Technology Officer (CTO) in a company is more important than ever before. As well as being the key decision-maker for the company’s technology needs, they will also work on research and development in this area. This position is sometimes known as the Chief Technical Officer, and they will work toward the short and long-term aims of the company to help them keep up with the technological advancements needed to keep ahead of their competition. Depending on the company, they’ll likely report to the CEO, but sometimes there is a Chief Information Officer in between the two positions to which they are required to report.
What Does the Chief Technology Officer do?
The CTO of a company works to manage the technology used within an organization, with the aim of driving high value for the technology. Each company’s expectations for this role will vary slightly, but it will usually encompass innovation, software development, architecture, and infrastructure. A CTO will need to have a good knowledge base about the current technology trends and how they can be applied within your industry. They will work to make technological advancements based on the organization’s objectives and desired results.
In some companies, the CTO role often overlaps with various other positions, such as the Chief Information Officer or Chief Digital Officer. Oftentimes the CTO will report directly to the CEO, but the hierarchy will vary depending on the company’s needs. With technology changing year after year, the expectations for this role continue to develop also, with CTOs becoming more focused on customers’ needs. They are often seen as the external face of the technological offerings from a company, whereas the CIO will focus on the internal systems.
The Role of the Chief Technology Officer Today
As the highest position within a company focusing solely on technology, the CTO will lead the technology and engineering departments. They’ll work to create products and services for their external customers and improve policies to deliver these results. The CTO works alongside the CEO to increase revenue and will look at the cost-benefit and ROI of decisions that are made. In the past, the Chief Information Officer often carried out a lot of the roles the CTO does today, but as technology has advanced, the need to separate these two roles has become more apparent. Most large tech-focused companies will have both a CTO and CIO, but smaller companies will choose just one of them. This often depends on their vision and their current budget.
The Key Responsibilities of a CTO
When it comes to the responsibilities of the CTO, they will vary between organizations. However, these are the key activities they will usually undertake each day:
- Creating a vision and strategy for technology within the organization
- Attending meetings in the C-Suite to represent the technology team
- Hiring and training the technology team within the company
- Create a technology-focused culture
- Working to understand and educate others about how technology can help the company to achieve its objectives
- Assist with mergers and acquisitions
- Advising the CEO and other executives on new technological advancements
- Influencing and communicating with the Board of Directors
Technology Governance and the CTO
One of the key areas of responsibility for the CTO is technology governance. They must ensure that their investments in technology are properly governed. A CTO will have to look after a wide range of projects and will need to maintain a good relationship with stakeholders. They should work to create a technology roadmap for the company and look ahead for the future to keep them ahead of other companies within the industry. On top of this, they’ll need to have a good understanding of finances and how technology can offer an excellent financial return for the company. Budgeting is vital for success in this area to ensure that companies make good investments and decisions.
Product Development
In most companies, a key area of interest for the CTO is product development. This is all about encouraging innovation and working to develop new and innovative products for customers. As the public face of the company, as far as technology is concerned, the CTO will be working to excite customers and educate them on how their new developments can change their lives. Large companies will also have a Chief Product Owner, who the CTO will work alongside to develop new products. They will aim to increase revenue and improve the brand’s image in the future. A good CTO will have a strong understanding of UI, user research, DevOps, and testing.
Different Types of Chief Technology Officers
Unlike other executive positions, you’ll find that CTO roles vary between companies. These are some of the key types of CTO positions you’ll find:
- Infrastructure Overseer – They’ll work to look after the security, data, company network, and maintenance, and may also look after the technological roadmap.
- Consumer Liaison – This position works to interact between the customer and business and will be heavily involved in customer relations.
- Strategic Planner – This CTO position will work to understand how technology can be used in the future within the company and looks to implement new technology.
- Thinker – Finally, a thinker CTO will focus on the corporate strategy and technological infrastructure by creating business models and working closely with the CEO.
Requirements to Become a Chief Technology Officer
Most CTOs have a background in the IT industry and start off by studying for a degree in IT or computing, which may include software development, computer programming, or cybersecurity. Most companies expect CTOs to have a master’s degree in one of these fields, but marketing and sales experience or an MBA can also be useful. However, experience working in this industry is more critical, and you’ll generally need fifteen or twenty years of experience to command the CTO salary and position. On top of these skills, leadership and project management are key areas to consider when hiring a CTO, as well as good communication and organizational skills.
The CTO position is one that’s being relied on more and more today by companies, especially those with a major interest in the technological field. It’s one of a few positions that focus on technological developments but is the one that requires the most knowledge and experience in this industry. As a customer-facing role within the company, you’ll need to ensure that a CTO is confident engaging with the public and sharing new developments for your company. We can only expect this role to become noticed more in upcoming years as our reliance on technology continues to increase.
