Chief Technology Officer or CTO is a position in a company that is responsible for making decisions regarding the entire technology infrastructure. Therefore, the CTO can be said to be the highest position for technology matters in a company. It’s not surprising that the CTO needs someone with quite high levels of responsibility and qualifications.
In the current era, the need for someone who understands technology has become an important element of a company, especially business. This is the reason for a Chief Technology Officer (CTO) to ensure the alignment of technology strategy with company goals. So, what does a CTO actually mean and what is its role in the company?
Understanding CTO
The Chief Technology Officer or CTO can be said to be an executive in a company who is responsible for technology needs, research and development. The work carried out by the CTO will be directly reported to the company’s Chief Executive Officer (CEO).
Discussing executives in the technology sector, a company usually doesn’t just stop at the CTO. Companies will also need an executive Chief Information Officer (CIO) to maximize company goals. Although many people confuse the difference between CTO and CIO, these two positions are basically very closely related to managing technology in a company. It’s just that both are very, very different executive positions.
The Chief Information Officer usually has the task of managing the infrastructure and operations of the company’s information technology (IT). This section is responsible for implementing technology systems and products to simplify internal business processes. In addition, the role of the CTO is specifically to build technology products or services so that they are able to meet the needs of company customers.
Initially, the CIO position could play two roles in the company, starting from the CIO itself to the CTO. However, as the world of technology develops, the CTO is separated considering that both positions have a vital role. This separation was carried out with the aim of maximizing the contribution of technology to company productivity.
However, some companies now may only have a CTO or CIO. However, there are also several companies that continue to fill both positions. In general, companies on a large scale will need both roles. Meanwhile, companies with a small scale only have one of them.
CTO duties
In an article on Investopedia, a person who serves as CTO usually leads the technology or engineering department in a company. The CTO has the task of developing policies and procedures. It doesn’t stop there, they are also required to maximize technology so that they are able to improve the company’s products and services to customers or clients.
For companies, a CTO is expected to have the ability to develop various strategies to increase revenue. The CTO will generally determine all decisions through cost and benefit analysis as well as return on investment analysis.
The duties carried out are certainly very different from the CIO position. The CIO is known to have a greater role in the operational and internal parts of the company. Meanwhile, a CTO has more duties regarding strategy and insight into the outside of the company. In simple terms, a CTO has a duty to grow external business by utilizing services and products that serve the company’s clients or customers.
Today’s digital era, the CTO is actually the party behind various application integrations and the process of digitizing product transactions with consumers. Apart from that, CTOs are also required to manage helpdesk professionals while making various decisions about the right tools or technology to be used by the company.
Basically, a CTO is someone who serves as an “outward-facing” representative of technology. As this representative, the CTO is required to always ensure that the company’s technological developments have a place in the market and at related company conferences.
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Role and types of CTO in a Company
As explained above, a CTO has a comprehensive role in all company technology matters to consumers or external clients. It doesn’t stop there, a CTO also automatically gets a role as a position that develops revenue strategies and carries out cost benefit analysis and Return of Investment (ROI) analysis.
Therefore, the responsibilities carried out by a CTO in each company are influenced by several factors, namely company size, industry, business model, and number of employees. In general, the following roles are played by a CTO, including:
- Develop technical aspects to ensure alignment with the business objectives of the company strategy.
- Create and implement new technologies that produce competitive advantages
- Supporting each department using technology to its full potential.
- Control infrastructure systems so that functionality and efficiency can be maintained.
- Establish a quality assurance and data protection process.
- Utilize impressions or feedback from stakeholders for necessary improvements and adjustments in terms of technology.
- Communicate the right technology strategy to partners and investors.
Types of CTOs
However, each company assigns quite different roles to its CTOs. When viewed based on their main duties, a CTO can be divided into four types, including the following:
1. Infrastructure
This type of CTO has the task of overseeing company data, security, maintenance and the company network. As the person responsible for infrastructure, a CTO is required to be able to implement the company’s technical strategy as well as manage the company’s technology roadmap .
2. Planner
As a position in charge of planning, this type of CTO has the task of creating a vision of how technology can be used in the company, thereby producing a technical strategy for the company. This means that the CTO will ensure success regarding how new technology is implemented in the company.
3. Consumer-Focused
As someone who is an “outward facing” technology representative, a CTO of this type has a role as a liaison between customers and the company. This task is usually referred to as customer relations . Apart from that, customer relations are also being asked to understand the target market and help deliver various information technology projects to the market.
4. Thinker
As the name suggests, this type of CTO has a role to support and control the company’s strategy. One form of support that will be provided by the CTO is of course technological infrastructure for the company. In addition, the CTO’s position as a thinker is responsible for analyzing target markets as well as creating business models for the company for clients or customers.
Difference between CEO, CFO, CTO, and COO
The CTO position is generally an executive or C-Level position in a company. Even though they both lead the company to achieve its goals, each executive position such as CEO, COO, CFO, and CTO has its own characteristics in the company’s business processes. So, here are some differences between the four executive positions, including:
CTO
- Holds the position as head of the company’s technology department.
- Tasked with overseeing company data, from network maintenance to company security.
- Responsible for technical strategy for the company and its implementation for market penetration.
- Has a position as senior vice president with a consumer-focused technology orientation.
CEO
- Serves as the highest leader of the company.
- In charge of making general decisions and strategies for the company.
- Responsible in general within the company by analyzing the company’s strengths and weaknesses.
- Has the main position as president or main director in the company.
COO
- Serves as head of company operations.
- Responsible for managing and making decisions regarding company operations.
- Responsible for solving various company problems through the operational domain (communication, collaboration, improvisation, recruitment, operational analysis and strategy implementation).
- Has the position of main senior vice president in the company.
CFO
- Holds the position as head of the company’s financial department.
- In charge of managing planning and various company financial administration.
- Responsible for finance and accounting functions, supervision of staff related to finance, and understanding applicable tax regulations.
- Has a position as senior vice president in the company.
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8 Capabilities that CTOs Must Have
With various duties and responsibilities carried out by a CTO. There are 8 skills you must have to become a good CTO. The following is an explanation of eight important abilities for CTOs, including:
1. Leadership
Chief Technology Officer or often known as CTO is a position at the company executive level. As one of the leaders in the company, a CTO will have the task of exercising control over managers and teams, so that various technical things in the company can run well. Of course, this task requires a CTO to have capable leadership skills, for example delegating tasks or providing guidance to each level. .
2. Communication
After leadership skills, a CTO must also have good communication skills both verbally and in writing. This communication ability will enable a CTO to build cooperation with the ranks below him. Apart from that, CTOs are also required to be skilled in communicating the company’s technological needs and implementing systems that are more appropriate than existing technical systems. Plus, a CTO must be able to compile reports on the company’s technology performance as well as provide feedback when needed.
3. Decision Making
The next ability that a CTO must have is of course making the right decisions. As one of the people who holds the highest position in a company. CTOs are required to always be responsible for all important decisions, especially those related to technology. Several things are the CTO’s business in making decisions, namely internal technology, production and marketing matters.
4. Business Understanding
Almost most business companies today need a CTO to increase productivity. Therefore, a CTO is generally also required to have a good understanding. A CTO must understand the company’s needs, so that he can develop strategies while monitoring the results.
5. Organization
A CTO may manage several departments, from infrastructure, data security, to helpdesk support . Therefore, the CTO is also expected to have strong organizational skills, so that he can ensure that each department can work with each other.
6. Technological Capabilities
As the name suggests, CTO is the leader of the technology department. A CTO is expected to have excellent technological skills. This is because a CTO is required to have a strong technical background, such as being able to operate Agile , JavaScript , and machine learning . Not only that, some companies also often add other requirements, such as Java , Net , big data , project management, and artificial intelligence. A strong understanding of technology will really enable companies to plan strategies and make relevant decisions.
7. Follow the Latest Technology Trends
Every profession nowadays has adapted to needs, especially technology as one of the drivers of change. Therefore, a CTO is required to be able to follow various existing technological trends. Technology has been proven to bring many successes to companies in any field. The use of this technology will correlate with various technological innovation offerings from the company.
Apart from that, a CTO who always follows developments will influence the progressivity of the technology department, one of which is updating tools or software. A CTO will also be more precise in predicting the position of the business in the next few years. Technology has been proven to make companies always competitive, efficient and scalable.
8. Know Recruitment Candidates
One of the important abilities that a CTO must have is knowing recruitment candidates. A CTO can achieve the goals set if he has the right colleagues. This is one thing that must be fulfilled first because the best CTO cannot work without a team.
Plus, some companies usually look for someone with high talent rather than qualified candidates when looking for new job opportunities. Therefore, a CTO is expected to know candidates who meet the various technical requirements needed, so that they are able to build a capable business technology ecosystem.
A CTO is required to participate in the recruitment process for the team he or she will lead. In addition, the CTO must also have the sensitivity to determine which candidates match the company culture and whose skills align with the company.
CTO Career Path
The growth of various start-up companies in Indonesia means that the role of technology in a business ecosystem is also growing. Most commercial companies are known to need technology such as buying and selling applications to market their products. In fact, many companies use technology as a basis for running their business.
This development certainly creates a career path for someone who is a technology expert and wants to become a CTO. For a company that wants to develop technology, it is certain that it needs a very competent CTO. In recent times, this executive position usually starts as a developer or developer and also a technician in a company.
Based on an article from the Maryville University website , someone to achieve the CTO position requires at least 10 to 15 years of experience with a role specialization in information technology. There are several things that must be mastered, namely network architecture, big data engineering, information security management, security engineering, and software development.
Apart from that, before reaching the highest level in the CTO position, a person is also expected to go through a managerial position in the field of information technology. This is necessary to further mature one’s experience and performance. In Indonesia, the salary of a CTO is known to reach around 62 million rupiah per month.
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Closing
That’s a review of the role of a Chief Technology Officer and a job description. For Mudalovers who have a passion for technology, there is nothing wrong if you aspire to become a CTO in the future.