They promote confidence in the company’s vision, participate in customer meetings and work diligently to meet end-user needs. Further, technological innovations combined with the intelligent use of data allow startup companies to create entirely new business models, turning incumbent industries upside down. When companies must pivot their business strategies, the CTO is the first line of defense against disruptive new market forces. A CTO creates a strategy and planning to execute with a vision and provides business leadership an efficient solution and get the approval of budget to hire resources. A CTO can’t lead a technology division unless he or she can think and have a broad vision of either adopting new technologies or creating own solutions. Today, innovation and first to adopt and introduce could make a difference in business growth.
They are great employees to substitute for someone with sick leaves or to cover the position for several individual tasks. Thousands of companies are ready to pay larger salaries to keep skilled employees in their ranks, so the challenge is even more significant. While this diverse role involves a very complex set of tasks, they can be organized into five basic responsibilities, which are described as follows. As any technologist, a CTO should be able to come up with solutions that are not only efficient but also be able to met time and cost criteria.
Top Priorities for CTO
Bath Iron Works on Monday announced it hired a former MaineHealth executive as the shipyard’s new chief information officer. Julie Berry worked as a vice president overseeing information technology at MaineHealth. Explore the possibility to hire a dedicated R&D team that helps your company to scale product development. Our Saturday morning newsletter delivers no-fluff, all-action insights straight to your inbox, so you can level up your hiring and leadership game to build the A-team of your dreams. Like most salary ranges, CTO compensation varies widely depending on education, experience, the size of the company and who you ask. According to SalaryExpert, average CTO compensation in the U.S. is $220,535, with an average bonus of $50,128.
So much so, in fact, that some businesses – including established enterprises – have opted to rely more on a CTO than a CIO. So while the CTO might go and speak with vendors to source technology, the CIO makes sure the internal business gets the secure and governable systems and services it wants. That’s a good question, seeing as the chief information officer is also often defined as the most senior IT executive in the business. The difference between the CIO and the CTO depends very much on the type of business you’re talking about. The CTO represents the external face of a company, which requires them to have an open and engaged relationship with vendors, customers, investors and partners. Keeping on top of technology trends and working out where to place big bets is a time consuming process.
What Does a Chief Technology Officer Do?
Moreover, a good Chief Technology Officer ought to be a multitasker, as they will have many duties and several tasks or people may require their attention. For this reason, they must have great organizational skills and be able to coordinate the work of their team with efficiency. Organizations looking to hire a CTO should seek someone who is ambitious and bold, “someone who can shake the status quo, stay resilient, and turn technology into something useful for the organization,” Aksakal says. These traits can be demonstrated by earlier career choices and accomplishments.
CTOs must have technical acumen — but they must have strong business acumen and be able to show how technology helps achieve business objectives. They need to be the champion of the technology vision and be able to execute it well. If their role involved innovation they need to have strong engagement and influence with other senior executives. 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.
CTO job description
Both positions focus on the engineering, implementation, development and management of technology. However, the key difference is that the CIO role typically involves internal operations, while the CTO role focuses on external processes. While research and development have been a component of businesses for many years, the rise of information technology (IT) and computers has increased the importance of the chief technology officer. Companies focusing on scientific and electronic products employ CTOs who are responsible for the oversight of intellectual property and have backgrounds in the industry.
- 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.
- The goal of a CTO is to examine short- and long-term needs while using capital to make investments that aid the organization in reaching its goals.
- 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.
- A CTO should be a people person when needed and also be a ruthless executioner when it comes to executing his or her plans.
- Individuals may need five to 10 years of experience in IT, according to Indeed.
- “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.”
In a world driven by increasing developments and advancements in technology, your business’s ability to maintain a competitive advantage rests on the quality of your technology leadership. Usually, “technology leadership” revolves around the Chief Technology Officer (CTO). This type of CTO may envision how technology will be used within the company while setting the technical strategy for the company. This CTO will also look at how to further implement new technologies within the company to ensure its success.
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Many big businesses, however, have both – and that’s where things get complicated. 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. For example, an innovation-focused CTO might be measured on their product innovation, whereas an operation-focused CTO might be measured on defects or P1 incidents. These CTOs usually report to the CIO, rather than holding an executive-level position and reporting to the CEO. They will need to take charge and lead research and development, innovation labs, and their team of product engineers.
There are occasions when it’s necessary to see humans as a production line capable of cranking out N lines at a complexity of M per hour. Y Scouts is an executive search firm that helps nonprofits and social enterprises find exceptional leaders. chief technology officer responsibilities To be considered for exceptional leadership opportunities with our clients, please take the first step by joining the Y Scouts Leadership Community. A leader who can lead a team of people and make them believe in his or her vision.
Strategic planning
Upon graduation, professionals may work between 10 to 15 years in IT-related roles, with five years spent in a manager position. Relevant entry-level positions include technical support specialist, software developer and QA analyst. Top performers can work their way up and gain leadership experience through roles like engineering manager and information security manager. Chief technology officers (CTOs) are in charge of a company’s technology strategy. They evaluate an organization’s tech resources and emerging technologies, deciding how to improve products or services for customers and spur business growth. Here’s what to know about a CTO’s needed skills, salary and how to become one.
But one thing is for sure, they need to have their finger on the “technological pulse,” and remain aware of new trends and technologies that could disrupt their business. 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. The dizzying speed of technological change makes it critical for companies to stay ahead of fast-changing trends, and anticipate disruptions to their business model. A CTO is responsible for R&D, building new applications, launching new products, and working with IT to get the products ready for testing and deployments.
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Those who excel in these positions can earn promotions to managerial roles and establish themselves as attractive candidates for CTO positions. A CTO is the highest tech executive at a company, so ambitious professionals may set their sights on becoming CEO or transition to a different leadership role. The chief technology officer position is among senior executives in IT companies. As a senior executive focused on an organization’s technical requirements and challenges, the CTO’s role can be similar to that of the CIO. As opposed to other executive roles, this one suggests active participation in technical decision-making and the management of the business’s technological aspects and production resources.