The current pandemic demonstrates how digital changes can bring a corporation to its knees. Several businesses had to use technological advancement to adapt to a work-from-home environment. These changes are often paired with the clever use of data to construct new business models to compete with old ones.
Examples of these occurrences are Netflix’s annihilation of Blockbuster or how Airbnb outcompetes the hotel industry. When businesses are forced to pivot their strategy, the chief technology officer is the first line of defense against a competitive marketplace. If you want your business to stay ahead of the game, continue reading to learn more about the CTO roles and responsibilities.
What Does a CTO Do?
While the CTO holds technical skills, their duties go beyond coding and engineering. They oversee the company’s information technology and operations department. To get a closer look, here is what they do:
- Day-to-day operations of the business
- Cybersecurity
- Technology innovation
- Product development
- Marketing
- Managing team members
Even the smallest businesses need CTOs to possess leadership, IT, and project management capabilities. CTOs are expected to promote technical innovation and digital product creation. However, they must also keep a close eye on larger technology trends.
What Roles Does a CTO Play in Startups?
The startup CTO is responsible for team recruitment, onboarding, training, and management. This is important for businesses without a competent HR department. The CTO’s role is to develop a technology stack, provide financial recommendations, and strive to enhance digital products.
How Does the CTO Execute on Their Technical Visions?
Before executing on a vision, the CTO must collaborate with the CEO and other executives. The goal of the collaboration is to create the company’s technical strategy. This process involves identifying objectives, debating alternatives, and assessing risks.
The technical plan must be consistent with the organization’s goals and objectives. Thus, the CTO’s success will require technical expertise and sound business judgments.
What Are the CTO’s Role in Production?
The CTO collaborates with the VP of engineering and production. The goal is to assist with recruiting and retention efforts, optimizing production processes, and pushing for innovation. They also help enhance team productivity and motivation.
What Are the CTO’s Role in Business Development?
Your CTO helps with acquisition efforts, growing the company’s presence and voice, and staying current on competitive developments in the market. They are always on the lookout for new technology advancements and innovation. The hope is to use these tools to increase productivity and customer satisfaction.
What Are the Salaries of a CTO?
According to SalaryExpert, the average income for a CTO in the United States is $220,535, including a bonus of $50,128. Salaries for entry-level employees with one to three years of experience are $140,446. A senior-level CTO with eight or more years of experience will bring home $348,648.
Fractional CTO works on a part-time and on-demand basis. They are perfect for small businesses that can’t afford a full-time, on-staff CTO. The fractional CTO rates depend on the contract and where the individual works.
Learn More About the CTO Roles and Responsibilities
From the C-suite down, the CTO’s responsibilities are pretty diverse. They play a crucial role in the company’s operations, including manufacturing, sales, and marketing. The precise nature of the role depends on the company’s size and industry position.
With a robust IT strategy, small firms can compete on equal grounds with the industry giants. This healthy competition is why small businesses are interested in employing a professional CTO. If you are also interested, check out our blog posts to learn more about the CTO roles and responsibilities.
