Implementing a digital transformation requires time, resources, and the right expertise to succeed. Some companies do not always achieve what they hope for, and a common challenge is that the tech strategy is not integrated with the overall business strategy. One way to ensure that digitalization meets and exceeds expectations is to have a CTO – a Chief Technology Officer. Learn more about common challenges in digitalization.
A CTO plays a crucial role within a company's executive team, responsible for aligning the tech strategy with the business strategy to achieve set goals. Read more about the importance of aligning business and tech. Primarily a business function, the CTO also has a deep understanding of technology and how it can enable the company to achieve its business objectives. Their expertise is particularly valuable in organizations undergoing or preparing for major digital changes, where they can direct technology investments not only to be cost-effective but also to directly contribute to strategic business goals and long-term growth.
A CTO's main task is to translate the company's business objectives into technical strategies. The role primarily involves leading the development of new products and/or services and driving the tech agenda in the executive team by inspiring and motivating the entire organization to use technological solutions as a means to enhance the business.
By serving as a bridge between technology and business, a CTO ensures that technology investments are well-founded in the company's long-term goals and help to achieve them more quickly. It is therefore crucial that they not only possess technical know-how but also a clear strategic business understanding to make technology a central part of business development. As of that, having a CTO will make it easier for your business to order technology.
An IT Manager is responsible for the operation and security of the company's IT systems. Much of their daily work also involves extinguishing fires when various situations arise, such as system failures and technical errors.
While an IT manager is often reactive, a CTO is more proactive in their work. Their technical work involves broader strategic issues, and it is about developing new products and services, formulating long-term strategies, and integrating technology into the business to enhance the company's competitiveness and innovative capability.
While the IT manager focuses on the current function of technology, a CTO looks forward to identifying and implementing technical solutions that will accelerate the business and create business value.
The integration of tech strategy and business strategy with each other and striving to achieve the same goals is the most important aspect for a business to succeed with digitalization. To achieve this integration, someone with a strategic business understanding is required, but who also understands what technology can contribute to the operation. Having a CTO is therefore crucial to achieving what you want with your digitalization. With their expertise, they can drive innovation, avoid misguided investments, translate business goals into technical solutions, and thus create sustainable competitive advantages in an increasingly digitalized world.
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