An established company needs to have various corporate executive positions to ensure that all areas of the structure are well-planned, and once problems arise, someone will be responsible to mitigate and properly solve issues and prevent the possibility of recurrence. These “executives” are also responsible for formulating strategic actions to strengthen the position of the company, especially with the continuing development of the industry. One of the positions that companies should have is a CTO or Chief Technology Officer. But what is a CTO? How does it become an integral part of a company’s growth?
- Managing the organization’s research and development (R&D) and technology needs;
- Translating technological capabilities into strategic business decisions;
- Participating in management decisions about corporate governance;
- Being able to recognize whether a product/service can be beneficial for company’s goals and objectives;
- Fitting into a given budget and satisfying company’s short- and long-term needs with it;
- Inspiring/exciting people internally around the long-term vision of the company.
CIO or CTO?
The CTO has become popular in the 90s and grew along with the existence of the Information Technology (IT) industry. Technology-based industries like game developers and social networking platforms are also in need of the aforementioned officer. But with the continuous development transpiring these days, other non-computerized industries today have also secured a CTO position in their company’s organizational chart.
The Chief Information Officer (CIO) used to hold the CTO’s responsibilities. But because of the continuous technical advancements, there was a need for a new position that can solely handle the job to ensure that no important factor can be missed.
A CIO is responsible for internal strategies where technology is needed to support the business growth while the CTO handle external strategies which help strengthen business-client relationship through improved services using the latest offerings our modern world have these days.
A large-sized company usually needs a CIO and a CTO, while small- to medium-sized companies can either have one. It will all depend on the needs and the execution of the strategies.
What does a CTO actually do?
So, what exactly can a CTO do in order to improve the company’s marketability and customer relation? First is the identification and the integration of the new technologies. Through such strategy, the company’s performance is improved and probable issues are alleviated. The CTO needs to formulate an effective business plan by looking through the lens of technology. He has to develop the current strategy the business is implementing through new business models and lines. The long-term effect must be distinguished to strengthen future plans that will bring the company towards achieving the goals.
Measuring the success a CTO is implementing to a business depends on the metrics the enterprise is using. The CTO needs to oversee how technology can impact the business not only on the present aspect but also on future occurrences. If all these were successfully executed, the CTO has done a wonderful job. But that does not end there. The advancements these days do not stop. New technologies are being released all the time, therefore, the CTO needs to make sure that the current technologies they are using still coincide with the company’s vision. If not, they must be immediately replaced to strengthen the company’s position in the industry.