The role of CTO is changing with digital transformation, watch out for the roles of CTOs

CTO stands for chief technology officer and is responsible for overseeing the development and dissemination of technology for external customers, vendors, and other clients to help improve and increase business. A CTO will set the technical direction for product development, and create and execute the strategic plan. They may also deal with internal IT operations and identify the exact resources necessary to put the plan into action.

They are responsible for all aspects of technology within an organization. And they need to balance the technology strategy they utilize and the company's business needs. In a business world increasingly beholden to digital technologies, the role of the Chief Technology Officer has steadily ascended the corporate hierarchy to become a critical component of day-to-day operations, if a company is small and doesn't have a CTO. But the majority of CTOs' roles had changed over the past three years, with 56.4% citing significant change.

The evolution of CTO:

The CTO has become at the forefront of transformation, there is now a renewed focus on the larger corporate environment and the CTO role has evolved dramatically. Initially, a CTO was able to work with just their department but, now a CTO is aware of trends, what their customers want, and more importantly, what will help the company succeed and actively participate in all facets of the company.

The CTO's role-changing phenomenon also requires these professionals to have a forward-thinking mindset about how certain technologies could strengthen a company's position in the marketplace relative to its competitors. CTO and their teams have to be agile or they will be at risk of raising even more walls than the ones they've torn down. Many CTOs also viewed a changing company as a vehicle for skill enhancement. Chief Technology Officer that succeeds in the modern landscape must have money management skills. In the future, a CTO will be defined based on the network they are having. Hence, developing a community is mandatory to handle the role effectively.

The CTO fills multiple roles:

Since technology is increasingly becoming the prime mover for a company's success, the CTO's function will become diversified. A CTO must be able to keep up with technology trends and changes while still maintaining a strict budget. And is often the leader of the Research and Development for technological goods and is also responsible for innovation and upgrades of technology in the company, both hardware, and software.

The Chief Technology Officer is dually playing the internal as well as an external role; owning the technology aspects of the company and also are expected to contribute ideas to help grow the company and continue the transformation process, keeping a careful watch on tech-related spending is a crucial part of a CTO's role. The best CTOs are achieving greater strategic and 'front-to-back' impact, creating or enabling new revenue streams, simplifying ways of working, and increasing resilience and reducing risk.

Key challenges of CTOs:

According to some reports, 56% of CTOs suffered from stress-related illnesses or mental distress due to their work. Chief Technology Officers are being stretched in completely new ways. Alignment between digital and technology is a strategic conversation, not a trend, and should be top of mind for every chief executive and board.

Marshaling resources, measuring success, and securing chief executive buy-in, as well as ensuring IT accelerates rather than hindering the progress of digital business initiatives are the additional challenges faced by CTOs. And they need to ensure overall that technology infrastructure is effectively managed, service objectives met, and strategy aligned with company goals is a mission fraught with challenges and pitfalls, but full of value and opportunity.