CIO or CTO?
- 11 minute read
The role of the technology leader has undergone significant changes over the past decade. In today's fast-paced and rapidly evolving business environment, technology leaders are expected to play a more strategic role in driving innovation and creating value for their organisations.
For business transformation, in particular, the role of technology leaders has more profound implications. One of the key questions that arise when considering the appointment of a technology leader is whether they should focus on being a business process expert or a technology evangelist - does your organisation need a Chief Information Officer or a Chief Technology Officer?
The answer to this question is not straightforward and depends on a range of factors, including the nature of the business, the type of business transformation required, the industry in which it operates, and the organisation's strategic goals. However, there is no doubt that CIOs and CTOs must possess a broad set of skills that go beyond technical expertise if they are to succeed in today's business environment. We explore how both roles influence and contribute to business success.
Business Process Mastery: The CIO's Imperative
Business Process Mastery is an essential skill for CIOs. Understanding the organisation's workflows and procedures enables CIOs to identify optimisation and improvement opportunities. By analysing business processes, they can pinpoint inefficiencies, redundancies, and areas where technology can streamline operations. CIOs who have this mastery can lead their companies towards process excellence and achieve organisational success.
In addition to driving operational efficiency, being a business process expert allows CIOs to contribute to the overall strategic direction of the organisation. By working closely with other business leaders, they can identify areas where technology can create value and drive growth.
According to a 2019 survey of global CIOs conducted by Deloitte, 57% of respondents stated that their primary focus was on business operations and process optimisation. This highlights the growing importance of the CIO as a business process expert who can drive operational efficiency and contribute to the overall success of the organisation.
An example of a CIO who has successfully played the role of a business process expert is Rob Carter, the CIO of FedEx. Carter believes that the key to success as a CIO is understanding the business and how technology can be used to drive innovation and create value. Under his leadership, FedEx has transformed its IT systems and processes, leveraging new technologies to streamline operations and improve customer service.
Technology Visionary: The CTO's Key Leadership Trait
Whilst the ability to fully understand business processes is essential for any technology leader, today's CTOs must also possess more than just technical expertise, they must be technology evangelists who can promote the use of technology across the organisation. CTOs who are technology evangelists can identify new and innovative technologies that can be used to drive business growth and create value.
By working closely with other business leaders, CTOs can identify areas where technology can be used to drive innovation and create new business models. They can also communicate the value of technology in a way that resonates with business leaders and helps them see how technology can enable their business processes and create value for the organisation.
According to a 2019 Gartner survey, 60% of CTOs stated that they were focused on digital transformation and innovation. This highlights the growing importance of the CTO as a technology evangelist who can drive the adoption of new technologies and promote innovation within the organisation.
Satya Nadella’s visionary and strategic approach transformed Microsoft's culture and strategy, moving the company from a focus on packaged software to a cloud-first, mobile-first strategy. Under his leadership, Microsoft has become a leading provider of cloud-based technologies and services, driving innovation and creating value for the organisation and its customers.
The blurred lines between business and technology
In today's digital era, the lines between business and technology are becoming increasingly blurred. Technology is no longer just an enabler of business processes, but a strategic driver of innovation, growth, and competitive advantage. Business leaders are now recognising the immense potential of technology to transform their organisations and create new opportunities.
Conversely, technology leaders, including CTOs, realise that they cannot just focus on the technical aspects of their role but must also understand the broader business context. They need to align technology initiatives with the organisation's strategic goals and demonstrate the value of technology in driving business outcomes.
This shift in mindset underscores the need for both business process experts and technology evangelists, as these roles are increasingly intertwined in today's digital world.
The role of data in the modern CIO's toolkit
One area where the lines between business and technology are blurring is in the realm of data. Data has become a critical asset for organisations, and its strategic management can drive significant business value.
As data becomes more pervasive and organisations harness its power for decision-making, CIOs need to play a strategic role in data governance, management, and analytics. They need to understand how data flows through the organisation, how it is stored, analysed, and used, and how it can be leveraged to drive insights and inform business strategies.
CIOs who are well-versed in data management can identify patterns, trends, and opportunities that can enable the organisation to make data-driven decisions and gain a competitive advantage. They can also ensure that the organisation is compliant with data regulations and protect the data from cybersecurity threats, as data breaches can have severe consequences for organisations, including financial losses and reputational damage.
One CIO who has notably leveraged data as a strategic asset is DJ Patil, the former CIO of the United States during the Obama administration. Patil spearheaded the use of data analytics to drive insights and inform policies, resulting in significant improvements in government operations and services. His role as a data-driven leader showcases the importance of CIOs understanding and leveraging data to drive strategic outcomes for their organisations.
The changing landscape of technology: Embracing innovation
The landscape of technology is constantly evolving, and for CTOs, this reinforces the need to stay abreast of the latest trends and innovations to remain effective in their roles. Proactively identifying emerging technologies that can drive innovation and create value for their organisations is essential in gaining a competitive advantage.
Technologies such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), and blockchain are disrupting industries and transforming business models. Understanding the potential of these technologies to automate processes, enhance customer experiences, and uncover insights from vast amounts of data are vital in delivering transformational organisational change. CTOs who are well-versed in IoT can leverage connected devices to optimise supply chain operations, monitor equipment performance, and enable predictive maintenance. Similarly, the intelligent use of blockchain can enhance security, transparency, and trust in business processes.
One example of a technology leader who has embraced innovation is Dr. Thomas Weber, the CIO of Lufthansa Cargo. Weber has been at the forefront of leveraging emerging technologies to transform the logistics industry. Under his leadership, Lufthansa Cargo has implemented technologies such as blockchain and IoT to optimise its supply chain operations, improve cargo tracking and enhance customer experiences. His proactive approach to embracing innovation points to the importance of being a technology evangelist and driving innovation in their organisations. It also points to the increasing cross-over of skills that today’s technology leaders must possess in order to drive innovation.
Adapting to changing business processes: Agility and flexibility
In today's fast-paced business environment, organisations need to be agile and adaptable to changing market dynamics. Business processes need to be constantly reviewed and optimised to stay competitive. This requires CIOs to be actively involved in understanding, analysing, and optimising business processes.
CIOs need to collaborate with business leaders to identify pain points, bottlenecks, and inefficiencies in business processes and find technological solutions to address them. They need to have a deep understanding of the organisation's operations, workflows, and customer interactions to ensure that technology is integrated seamlessly into the business processes.
A notable example of a CIO who has been successful in optimising business processes to aid rapid growth is Tim Campos, the former CIO of Facebook. Campos led initiatives to streamline internal processes, automate workflows, and improve collaboration across teams, enabling Facebook to scale its operations rapidly and efficiently.
Balancing technology innovation with business outcomes
While technology innovation is essential, technology leaders must also ensure that technology initiatives align with the organisation's strategic goals and drive measurable business outcomes. It is not enough for CTOs to be technology evangelists; they need to demonstrate the value of technology in creating tangible results for the organisation.
CTOs need to have a deep understanding of the organisation's business objectives, competitive landscape, and customer needs to identify technology initiatives that can deliver value. They need to work closely with business leaders to define technology roadmaps, prioritise initiatives, allocate resources, and measure outcomes.
One example of a technology leader who has effectively balanced technology innovation with business outcomes is Kim Hammonds, the former CIO of Deutsche Bank. As part of a strategic overhaul that included raising more than $8 billion of capital, partially listing its asset management arm and revamping parts of its business model in a bid to recover from legacy issues and billion-dollar dents in its balance sheet, Hammonds appointed Pascal Boillat as group chief information officer to spearhead its technology agenda, working with the bank's business divisions to modernise its IT infrastructure to reduce complexity and risk while enabling business growth.
Her success in aligning technology initiatives with people and business outcomes showcases the importance of being both technology evangelists and business process experts.
Building a strategic partnership with business leaders
To effectively fulfil the roles of business process expert and technology evangelist, strong strategic partnerships with other business leaders are vital. Both CIOs and CTOs must collaborate closely with executives, department heads, and other stakeholders to understand their needs, challenges, and opportunities.
Active participation in strategic discussions and contribution of their technical expertise to help shape the direction and priorities of the organisation, communicating the value of technology in driving business outcomes is critical in gaining buy-in from business leaders.
Technology leaders need to constantly scan the business landscape, proactively identify opportunities where technology can create value for the organisation and engage with business leaders on how technology can drive innovation, efficiency, and growth.
A successful example of a CIO who has built a strategic partnership with business leaders is Ursula Burns, the former CIO of Xerox. Burns worked closely with business leaders to drive digital transformation initiatives that resulted in new revenue streams, improved customer experiences, and increased operational efficiency. She transformed the company into a services provider focusing on three areas. One is business process outsourcing (BPO), the second is IT outsourcing (ITO), and the third is what She calls document outsourcing. Her ability to collaborate with business leaders, listen and understand customers' needs and align technology initiatives with business goals showcases the importance of CIOs being strategic partners in driving organisational success.
As organisations continue to face unprecedented challenges and disruptions, the role of the Technology leader becomes even more critical in driving digital transformation and creating value.
So CIOs need to have a strategic mindset, adapt to changing technologies, and foster a culture of innovation within their organisations. By embracing their role as both business process experts and technology evangelists, CIOs can lead their organisations to achieve sustainable business growth and success in the digital age.
The answer to the question of whether an organisation needs a Chief Information Officer or a Chief Technology Officer remains subjective. Both roles are critical, but the emphasis may differ depending on your organisation's goals and priorities.
As evidenced above, the roles of the CIO and the CTO have become increasingly integrated, and there has been a blurring of the lines between the two positions. While the CIO traditionally focused on managing an organisation's information systems and technology infrastructure, and the CTO was responsible for developing and implementing new technologies and driving innovation, today's technology leaders are required to excel in both areas.
As a result of these changes, the roles of the CIO and the CTO have become more intertwined. There is a growing trend towards merging the two roles. Many organisations are now appointing individuals with a hybrid skill set that includes both business acumen and technical expertise to lead their technology functions. This ensures that technology is integrated into the company's overall strategy and that it is aligned with the organisation's business goals.
Ultimately, the most effective technology leaders will be those who can balance both roles and seamlessly integrate technology into the organisation's business processes to drive business transformation.