Viewed in McKinsey
In today’s fast-paced business world, the roles of a Chief Information Officer (CIO) and a Chief Technology Officer (CTO) play a crucial role in driving organizational success.
These positions hold distinct responsibilities that contribute to a company’s competitiveness and growth in the ever-evolving technological landscape.
Mastermind overseeing information and knowledge systems
The CIO is the mastermind behind internal technology, overseeing information and knowledge systems that are vital to a company’s operations. They establish and manage infrastructure, policies, and practices related to information and communication technology.
But they’re not just tech managers – they also serve as product visionaries, driving strategic tech initiatives. Their responsibilities go beyond managing IT; they understand the business thoroughly, advocate for change, scout talent, foster a tech-friendly culture, and translate technology into real business implications.
Assessing disruptive technologies
On the other hand, the CTO is focused on emerging technologies and product strategy. They stay up to date with new, potentially disruptive technologies, understanding their implications and opportunities for the organization.
Traditionally, the CTO oversaw technology trends, policies, and procedures crucial for product and service development. But with advancing technology, their role has expanded to encompass a broad spectrum of technology-related aspects, emphasizing both product and technology development.
The CTO must possess a deep understanding of customers, fluency in design thinking, a grasp of current technologies, curiosity about new advancements, the ability to foresee implications, mastery of systems engineering, a penchant for challenging norms, and robust external networks.
Challenging, owning, influencing and enabling
Moreover, the CTO role can be divided into four distinct styles, depending on the company’s industry and technological intensity. Challengers and owners excel in technology-intensive environments, while influencers and enablers thrive in less technology-focused industries.
These styles differ in their approaches to research and development management, resource allocation, and strategic focus.
Long-term mandate
To support CTOs and CIOs effectively, CEOs and board members must ensure a long-term mandate, align on principles, attract tech talent, understand tech implications, and build technical literacy.
Additionally, emerging technologies like generative AI present opportunities for both CTOs and CIOs to create sustainable value by adopting nine key actions to integrate gen AI into their organizational strategies effectively.
As technology continues to advance, the roles of CIOs and CTOs will evolve further, demanding adaptable leaders capable of navigating complex technological landscapes to drive organizational success.
