What is a CTO: Ultimate guide to the Chief Technology Officer CTO

Nevertheless, generally speaking, a CTO is highly involved in the process, donning several hats and working closely with frontline team leaders and project managers to devise technology strategies that match the company’s needs. When we consider stages of development, we can then see some distinct differences in daily duties and responsibilities between a startup CTO and, for instance, technology leaders in fast-growth companies. This type of expert works on the battlefield and implements the company’s technical plan. The latter, on the other hand, must be pre-determined, therefore CTOs in this category focus on physical and digital systems, security, as well as sustain an IT product throughout its operational life cycle.

He was actually the only engineer in the business for the first year or so, where the firm needed to gain a huge amount of traction and secure further funding. “It’s so nuanced and the title in itself can mean so many things to many different people,” says Haake. “It’s difficult to say what the perfect CTO looks like because it will be led by what sector you’re in, how big the organisation is and what the ultimate product or service is.” The CTO is a fairly solitary role and as we have discussed a CTO has to wear many hats. Therefore, it is important to create an Office of the CTO (OCTO) so they can delegate some of their strategic thinking to enable greater bandwidth. The size, type, and maturity of a company can have a huge influence on the role of the CTO.

The Steps to Become a CTO: An Executive Career Path

They need to ensure that all instruments – in this case, applications, software and services – are in harmony. The CTO’s role is more than just simply selecting and deploying technology to drive innovation, enhance efficiencies and improve performance for customers, though. The CTO needs to be in tune with the wider business goals and has to conduct the digital transformation in a way that helps the company to achieve these goals. A large enterprise CTO works closely with senior executives, business leaders of different companies and technology vendors. The job here is to ensure that technology investments support the business objectives.

• Effective communication and being a strong advocate for change are key to helping CTOs secure buy-in and bring them on the journey.
• Depending on the company’s size and focus, it may have some or all of these positions.
• But just when you think the matter is settled, along comes the chief digital officer (CDO) and even a chief experience officer (CXO), creating a veritable Venn diagram of tech-focused executives with overlapping spheres of influence.
• CTOs typically work with CIOs (Chief Information Officer), but the roles aren’t the same.

In industries where technology is the company’s product (or a key part of it), the CTO is often the person in charge of that technology. The business enabler ensures that the technology is operating as intended and evolving in lockstep with the business. This CTO persona includes CTOs who are in charge of operational technology and lead a team of product engineers. The responsibilities and day-to-day functions of the CTO and CIO might overlap depending on the organization, how it’s structured, its business model, and other factors. In most cases, however, it’s the CTO who is charged with staying on top of emerging technologies that might be of value to the organization.

CTO vs. CIO

They are often very technical and may hold the head of architecture position to guide the architecture of the IT innovations. They will need to take charge and lead research and development, innovation labs, and their team of product engineers. Because a CTO needs to work with the CEO on strategy, and also advise other members of the C-Suite they should have broad business expertise, especially if they want to be credible at all levels of the company. A key part of this area is working with software vendors and partners to ensure that service levels are maintained and any new features are delivered safely. CTOs need to evangelise technology in order to inspire people inside and outside the company and drive change where necessary.

In startup companies, CTOs need skills in the design and architecture of products. They should master the art of accurately describing technical information in layman’s terms so that engineers and stakeholders alike can be on the same page. This mindset will allow them to stay on top of innovation and better direct their company to the best practices and products. A freelance CTO wears many hats and is an asset to bring more value to a growing company. They take responsibility for the technical aspects and find the best solutions and practices to support the business. Depending on the organizational structure, CTOs can report to various other C-level executives.

Why an MBA is a Smart Move for the Future CTO

They also back up startups on various grounds and get the ball rolling until the business is off the ground. Now that the company has taken off the ground, CTOs focus on talent acquisition and managing assembled teams. During the build phase, these specialists are usually the most well-informed teammates in the room from a technology standpoint. Thus, they provide their team with the relevant technology stack, perform product management and handle defect triages if needed.

While the traditional narrative of the CIO role around information systems management is becoming outdated, increasing numbers of digital leaders are seeing themselves as technologists, with a strong focus on digital, innovation and R&D. CIO remains the most commonly used title for the executive who runs technology, but the IT leadership position is in an almost-constant state of flux. As Ian Cohen, chief product and information officer at ICS Group, suggests, there is still no good definition of what constitutes an IT leader – and we’ve been struggling to find a definition for more than 30 years. Take Trainline CTO Mark Holt, who is the company’s senior technology leader.

Key Takeaways:

Business tech savvy – A CTO with a sense of business prowess is always an advantage to help with end-user requirements. For a lot of companies, this can encapsulate the role of a CTO — CRM and ERP implementation and supporting international teams with tech issues. A Chief Technology Officer’s main duty is to enable a company to reach its financial and marketing goals using an innovative tech approach. By this, I mean a CTO will blend knowledge of existing and emerging technology to provide a business with the best future solutions possible.

The chief technology officer has emerged as a key player in the C-suite, as digital transformations become high strategic priorities for so many organizations. Having a strong background in computer science, software engineering, and business administration is essential for a CTO. Technical skills are important, but management skills and decision-making abilities are equally crucial.

Skills Needed For a CTO

We’ve put together a customizable list that you can use for a CTO job description. Today, their roles are certainly more diverse and critical as advanced technologies emerge and impact their marketplaces. However, if you’re a CTO with around five to nine years of experience, also known as a mid-career custom ai solutions CTO, your earnings will be around £92,000. Communication and empathy are integral to the success of a team’s growth and making sure that teams are aligned with the company’s vision and direction. What’s more, CTOs need to create an environment that fosters innovation, creativity and collaboration.

It is designed as a blended online learning experience that combines 220 high-impact micro lectures spread across 9 modules, monthly live sessions and, even more importantly, support from the global community of technology leaders. A Group CTO takes charge of shaping the technological strategies and operations of a cluster of companies or subsidiaries within a larger corporate framework. Consequently, their mandate involves harmonising technology initiatives and strategies across various entities to ensure a cohesive and synergistic approach to technology investments. Similar to the previous two development stages, here, we are talking about cybersecurity threats, regulatory compliance, and data privacy.

Key Responsibilities of an Enterprise CTO

“Technology vision coupled with strategic thinking beyond technology” is important, says Ozgur Aksakal, president of the Global CTO Forum, an independent, global organization for technology professionals. As a member of the C-suite, the CTO needs to possess natural leadership skills, including the ability to delegate tasks and inspire staff in their work. To become a successful Chief Technology Officer (CTO), candidates must possess several qualifications that demonstrate their expertise and knowledge in the field.

The evolving CIO role: From IT operator to business strategist

This persona is focused on leveraging innovative technologies to transform the business model, products, and services. In 2019, Gartner developed several CTO personas based on analysis from a large CTO study, as well as CTO profiles and job descriptions. They found that it is important to know which CTO an organisation needs and where any gaps can be filled by other technology roles. In terms of qualifications, many organisations require an advanced degree such as an MBA, as the role involves a great deal of complex financial, business, and management skills. The vast majority of high-profile CTOs have a computer science degree or engineering degree but that is not a prerequisite. In fact, having a technical experience is seen as essential to understanding the nuances of technology strategy and delivery – and if you’re looking to hire a CTO, you should expect them to be skilled in these fields.

Your Business Needs Strong Technology Leadership to Compete and Win

Nearly half of CIOs also identified the CTO as a role of increasing importance in the C-suite – behind the CFO and COO – while four in every ten of 3,000 CEOs recognised  the role of CTO as strategically important. According to IBM’s The CTO Revelation report, which polled 2,500 CTOs and 2,500 CIOs, 61% of CTOs saw themselves as the executive that will play the most crucial role, beyond the CEO, over the next three years. However, they may report directly to a company’s CEO, especially if there is no CIO position.