These include startup area, business processing style, the number of in-house and outsourced workers, and many more. Although there is overlap between the two positions, since both deal with IT, CTOs generally look outward, using technology to improve the company’s customer experience—the use of the goods and services. CIOs generally look inward, developing and using technology to improve the company’s procedures and operations. This kind of CTO will help set up the corporate strategy and fuel technological infrastructure, will analyze target markets, and create business models.
- However, without these holistic business credentials, it can be difficult – if not impossible – to move into the upper echelons of a company’s management.
- They might, for example, have started their career as a software engineer and will always understand the nuances of technology.
- These traits can be demonstrated by earlier career choices and accomplishments.
- First, let us understand what is the CTO full form and CTO’s responsibilities.
- Integrating new technologies or innovations necessitates a well-thought-out plan.
- The need for this capability is justified since CTOs are in charge of gathering dev teams.
- One can pursue a master’s degree in engineering or computer science, applied mathematics, and cybersecurity.
Usually, developers ask for help only if they can’t solve the problem themselves. So, the CTO needs to evaluate the problem objectively and find the perfect solution. Let’s view what are the duties of a CTO during the growth stages of the startup. You need to recruit an experienced specialist performing CTO functions and responsibilities in the short term.
CTO vs. CIO
In this position, you will oversee our overall technology development and technology utilization plan an manage all information technology resources of our company. In smaller and more early-stage companies the, CTO has a more hands-on technical and engineering role. Many startup CTOs are the ones coding and working with the product owner to get the first product quickly to market. They will wear multiple hats and will require the hands-on experience of a range of skills including development, DevOps, risk, governance, and security.
This persona is focused on leveraging innovative technologies to transform the business model, products, and services. They always need to keep an eye on emerging technology trends, use customer intelligence, watch competitors, and the external market. All of this insight should be used to drive business model innovation well before the company can be disrupted by competitors. While not every company needs a CTO, at the very least this role can provide an alignment between a product or service’s strategy and a company’s technology strategy. After a bit of research, you’ll learn a lot of modern CTOs were former developers and project managers themselves.
Chief Technology Officer Salary and Job Outlook
The vast majority of high-profile CTOs have a computer science degree or engineering degree but that is not a prerequisite. Because the CTO is the public face of technology for the company, they need to display their technical prowess and insight to the business, customers, and external stakeholders. This is important for attracting talent, getting the best from vendors, and driving valuations with investors and analysts. An important part of technology leadership is developing cultural values, ethics (important in AI models), inclusivity, diversity, and addressing gender pay gaps. They need to be able to understand broad technology trends and have the business knowledge necessary to align technology-related decisions with the organisation’s results and objectives.
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. When an organization has both a CIO and CTO, the CTO usually has more technical know-how and expertise, according to the US Bureau of Labor Statistics (BLS). The CTO typically reports directly to the CIO and is responsible for designing and recommending the appropriate technology cto responsibilities solutions to support the CIO’s policies and directives, the bureau says. CTOs also work with various departments to implement the organization’s technology plans. The CTO also creates policies and procedures that leverage technology to enhance products and services delivered to external customers. Harvey Nash reports that 60% of digital leaders say good pay is the most important factor when looking for a new job.
How to Become a CTO: Responsibilities, Qualifications, and Career Tips
They include patience and the ability to embrace change, live with ambiguity and work under pressure. Success comes not only from knowing technology but from having the ability to recognize and convey its impact. Get good at pattern recognition and embrace critical and comparative thinking. The majority of start-ups may have a CTO who takes on product manager activities or at least is actively engaged in outlining the product planning process. Following this executive job route, however, requires patience and quick learning ability. The long road to becoming a CTO requires planning – it doesn’t happen overnight.
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. “Access to new customers via technology is so important, so a strong technologist is going to be absolutely critical to the business,” she says. “You might stay as the CTO but you should expect to have a seat on the executive team if you’re successful.” In fact, Haake says CTOs are well placed to move up the executive ladder. The underlying role of technology in modern business means Harvey Nash is seeing more requests for COOs with a technical background. Even if they don’t take on broader responsibilities and become COOs, the career outlook for engaged CTOs is bright.
Tools and Programs Chief Technology Officers Use
Because the role is dynamic and responsibilities can vary depending on the type and size of the organization, industry, and other factors, there isn’t really such thing as typical day for a CTO. The CTO is part of the executive team, so anyone interested in the role probably understands the need to be flexible when it comes to work hours. Also, depending on the types of projects that the company undertakes, the CTO may need to work during early mornings, evenings, or weekends to oversee IT projects that would interrupt business during normal operating hours.
According to the Spiceworks 2023 state of IT report, around 51% of companies intend to raise their IT budgets in 2023, while only 6% plan to reduce their expenditure on technology. Bureau of Labor Statistics, computer and information system management occupations are growing by about 16 percent annually (that’s much faster than the average growth rate for all occupations). This category includes CTOs, who are becoming increasingly desirable in corporate leadership.
Experience Information Technology conferences
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. Compensation structures for C-level employees vary and are often a hybrid of salary and performance-based bonuses. Highlighting benefits outside of traditional offerings in your CTO job description can help boost your organization’s chances in a competitive IT leadership marketplace. Today, leaders at companies of all sizes and in all industries understand the necessity of taking a big-picture view of technology’s impact on their businesses now and in the future. The CTO’s job is just that—marrying technological expertise with strategic business know-how to ensure that companies make technology investments that drive growth. Besides making critical decisions alongside other company leaders, a CTO must develop policies regarding technology so that organizations run smoothly.
However, with the right combination of skills and credentials, it lies within your reach. Here’s a closer look at what education a professional requires to be considered for the CTO role. According to McKinsey, every company needs one if it wants to adapt, innovate, and thrive. Read on to indulge that inner strategist and get planning the next big step in your career.
Does the size and type of company impact the role of the Chief Technology Officer (CTO)?
In addition, Chief Technology Officers must stick to their meeting schedules, read reports, etc., according to the standard job description of CTO. It assists the tech team in determining which features of the product need to be improved and which ones may be eliminated. The simplest method is to look for user forums related to your expertise (social media might be a great way to gather feedback).