The Role of a CTO for Startups
In the digital era, technology has become intertwined with business, and a chief technology officer’s primary role is to make sure tech strategy aligns with a company’s overall goals. But that doesn’t always mean a CTO oversees the IT departments or it is involved in development activities. Instead they blend knowledge of existing and emerging technology to provide a business with the best solutions possible for the future.
CTO for Startups, explained
A CTO is the highest technology executive position within a company and leads the technology or engineering department. He or she develops policies and procedures and uses technology to enhance products and services that focus on external customers. The CTO also develops strategies to increase revenue and performs a cost-benefit analysis and return-on-investment analysis.
Is the CTO a CIO too?
C-level executives have also a CIO role, which is oftentimes confused with the CTO. However, in the digital economy, these roles need to be separated. The chief information officer (CIO) previously performed dual roles as CIO and chief technology officer (CTO). Nevertheless, as technology continues to advance, there is a growing need to separate the CIO job into two roles to ensure a company’s success. The CTO has a strategic planning role, while the CIO has a technology-focused role. Large companies with large budgets have either a CTO, CIO, or both. Many large companies need both a CTO and CIO, while smaller companies have one or the other. The choice depends on the company’s vision and budget.
Was the CTO role always so popular?
The CTO title has been in use for over 10 years, but there is still confusion about the role and how it differs from the CIO. The title was popular with dot-com companies in the 1990s and then expanded to IT departments. The CTO role became popular as the information technology (IT) industry grew, but it is also used in other industries such as e-commerce, health care, telecommunications, and government.