In recent years, we’ve engaged in numerous discussions about the interpretations and nuances of technology leadership roles at the C-level. When you look at LinkedIn, you will see a wide range of titles used at leadership levels. Positioning and responsibilities vary greatly when you consider the background of these roles—whether they are used for hiring, job descriptions, career planning, targets for selling solutions, or account setups. Having been actively involved in various types of organizations—from startups to government, IT vendors, IT companies, and large corporations worldwide—We believe it’s time to shed some light on these roles. Titles like Chief Technology Officer (CTO), Chief Information Officer (CIO), and Chief Digital Officer (CDO) are frequently used, yet their meanings and responsibilities can vary widely between different organizations.
The challenge with these titles lies in their inconsistent usage across industries and company sizes. The hierarchy, responsibilities, activities, and even the positions themselves differ significantly depending on the organization’s structure and focus. This article aims to explore these roles in depth, providing clarity on their functions and how they fit into today’s corporate landscape. Just to be clear, this is not a judgment of any kind. There are often good reasons to use titles this way, and the type of company makes a big difference as well since enterprises and software companies are very different in their nature and customers.
Lets take a closer look at these roles and the differences between the different types of organisations.
The Chief Technology Officer (CTO)
CTO in Startups
In the dynamic world of startups, the CTO often emerges as one of the co-founders, carrying a significant portion of the company’s technical vision on their shoulders. Typically, this individual is a senior developer or engineer who has transitioned into a leadership role. Their responsibilities extend beyond coding; they set the technical direction of the company, make crucial decisions about technology stacks, and manage the development team. The CTO in a startup is the guardian of the company’s technological future, ensuring that the product or service being developed aligns with both market needs and the company’s long-term strategy.
Their role is hands-on and deeply embedded in the day-to-day technical operations. They are not just managers but active contributors to the codebase and technical problem-solving. This close involvement allows them to pivot quickly in response to market feedback or technological advancements—a critical capability in the fast-paced startup environment.
CTO in Corporations and Enterprises (Above 2000 FTE)
In larger, more established corporations—such as banks or multinational companies—the role of the CTO has evolved differently. Traditionally, the CTO served as the right hand to the CIO, focusing on the technical aspects that underpin the company’s information systems. Their responsibilities often included overseeing the enterprise architecture, spearheading innovation initiatives, and leading digital transformation programs. They also played a crucial role in cybersecurity, ensuring that the company’s technological infrastructure was secure and resilient. Later on, the cybersecurity part became the role of the CISO (Chief Information Security Officer), which is often a specialized senior-level leadership position as head of cybersecurity.
Over time, some organizations have merged the CIO and CTO roles into a single position known as the Chief Information and Technology Officer (CITO). This role combines the strategic oversight of information systems with the technical expertise required to innovate and adapt to new technologies—an example of this CITO setup is the structure of ABN AMRO Bank. Recently, there has been a shift in some corporations where the CTO position has been elevated to the board level, reflecting the increasing importance of technology in business strategy. For example, ING has restructured to place the CTO in a more prominent leadership position, acknowledging that technological innovation is central to their competitive edge.
In these large enterprises, you may also find multiple CIOs operating at the business line or unit level. These individuals are responsible for aligning IT strategy with the specific needs of their business unit and are often part of the business line’s management team. While they may not hold the overall C-level title, their role is strategically significant due to the size and importance of their business unit. Often, their title is combined with their business line, such as “CIO Customer Channels.”
CTO in IT Vendors and IT Companies
For IT vendors and IT companies, the CTO role takes on a different dimension. Since technology is the core product, the CTO becomes a central figure in driving the company’s success. They are often the strategic partner to the CEO, shaping the company’s technological vision and ensuring that their products and services remain at the forefront of innovation. The expertise and capabilities of the company’s employees are among its most valuable assets, and the CTO plays a pivotal role in harnessing this talent.
In some organizations, the CTO is seen as the natural successor to the CEO, reflecting the importance of technological leadership in the company’s future. For instance, at Fujitsu, the CTO has been positioned to potentially take over the CEO role. Conversely, in companies like Oracle, former CEOs have stepped into the CTO role, bringing a wealth of strategic experience to the technological helm and giving space to the new CEO.
Title Nuances and Specialized CTO Roles
The use of regional or business unit designations in titles—such as “Regional CTO” or “Business Unit CTO”—helps clarify the scope of responsibility and the organizational level at which the individual operates. These roles are typically part of regional leadership teams or business unit leadership teams and focus on the specific needs and challenges of their area.
In addition to these internal roles, there are specialized positions like Account CTOs or Field CTOs, especially prevalent in large IT vendors and integrators. These professionals act as strategic partners to the CTOs and CIOs of client companies, offering insights and guidance tailored to specific accounts or industry sectors. While they may not hold an internal C-level title, externally they operate at a high level, engaging with clients’ senior leadership and participating in industry committees. Their focus is outward-facing, ensuring that the company’s technology offerings align with client needs and industry trends.
CTO in Private Equity
For private equity firms, it’s important to leverage highly experienced CTOs to help grow their portfolio companies, especially when these companies are technology-driven. These CTOs play a crucial role in assessing potential investments, conducting technical due diligence during acquisitions, and advising on technology strategies post-acquisition. Often, you see Portfolio CTOs as part of this process—experienced CTOs who are active in the role of a private equity firm’s portfolio CTO to assist with these steps. Depending on the size of the private equity firm, they may be part of the leadership team but are more externally oriented toward the portfolio companies. The CIO may also be involved, supporting integration activities after acquisitions and evaluating the existing IT landscape to ensure it meets the firm’s standards and strategic goals.
The Core of the Company and the CTO’s Position
When the core business of a company is technology, the CTO is often a key figure in the leadership team, setting the direction and shaping the product portfolio. Their strategic decisions directly impact the company’s market position and competitive advantage. The CTO’s influence is significant because technology is integral to the company’s value proposition and customer offerings.
Conversely, in companies where technology is further from the core business—such as in industries like retail, manufacturing (non-tech), or traditional services—the CTO’s position might be lower in the organizational hierarchy. In such cases, technology serves as a support function rather than a primary driver of revenue. The CTO may report to the CIO or another executive, focusing on internal systems, infrastructure, and supporting technologies that enable business operations rather than leading product innovation.
CTO in Technical but Non-IT Companies
If a company is technical in nature but not primarily an IT company—such as manufacturers of machines or equipment—the role of Chief Technology Officer often revolves around the company’s specific technologies and engineering capabilities. In these cases, the CTO is responsible for product development, engineering processes, and technological innovations related to their industry. The traditional IT functions, including information systems and internal technology infrastructure, are often combined into the CIO role. This separation allows the CTO to focus on advancing the company’s core technologies while the CIO manages IT operations.
Fractional and Interim CTO/CIO Roles
In today’s flexible business environment, some companies opt for fractional or interim CTOs and CIOs. A fractional CTO/CIO is a part-time leadership role, where the executive provides their expertise to the company on a part-time basis. This arrangement is beneficial for startups or smaller companies that need high-level technical guidance but may not require—or cannot afford—a full-time executive. Another reason is to engage a seasoned CTO to bring the right expertise and experience. This can also be used as a transition to support internal candidates in combination with executive coaching, which helps with long-term career development.
An interim CTO/CIO is a temporary position, often filled during a period of transition, such as during a leadership change, a major project, or while searching for a permanent hire. Interim executives bring experience and stability, ensuring that technology strategies and operations continue to function smoothly during the transition period.
A fractional CTO/CIO is a part-time leadership role, where the executive provides their expertise to the company on a part-time basis.
The Chief Information Officer (CIO)
CIO in Enterprises
Traditionally, the CIO has been the primary technology leader within an organization, responsible for managing information systems and ensuring that technology supports business processes effectively. Their focus has been on overseeing IT operations, maintaining infrastructure, and managing technology budgets. The CIO ensures that the organization’s information systems are reliable, efficient, and aligned with business objectives.
However, there has been a significant shift in how IT budgets are allocated within companies. A substantial portion of these budgets is now managed directly by business units, leading to the rise of decentralized CIOs or business line IT directors. These individuals are embedded within specific business units, allowing for a more tailored approach to technology that directly supports the unit’s goals. We also call this the shift from IT to BT (Business Technology), which explains the change of budget ownership from the head of Information Systems and the IT department to Business Technology and business ownership.
This decentralization and change have also paved the way for the emergence of the Chief Digital Officer (CDO), who often leads digital transformation initiatives from a business perspective. The CIO’s role, while still crucial, is evolving to accommodate these changes, focusing more on integration and alignment across the organization.
CIO in IT Vendors and IT Companies
In IT vendors and IT companies, the CIO role is more internally focused, dealing with the company’s own information systems rather than client-facing technology solutions. They manage internal platforms, workplace technologies, and collaboration tools, ensuring that the company’s operations run smoothly. In these organizations, the CIO often reports to the Chief Financial Officer (CFO), Chief Operating Officer (COO), or even the CTO, and may not hold a C-level position.
The customer-facing technologies and solutions are typically under the purview of the CTO or specialized technical leadership roles. This division allows the company to focus its technological expertise outward, delivering value to clients while maintaining efficient internal operations.
CIO in Startups
In the startup environment where IT technology is dominant, the CIO role is often nonexistent. The focus in startups is typically on product development and market entry, areas where the CTO takes the lead. Any internal IT needs are usually managed by an IT manager or lead, who ensures that the necessary infrastructure is in place to support the team’s work. It can also be a part of the role since infrastructure and IT are very close to the technical nature of the CTO role. The emphasis of the CTO remains on agility and innovation, with resources directed toward developing and refining the core product or service.
The Chief Digital Officer (CDO)
The Chief Digital Officer is a relatively new addition to the C-suite, reflecting the growing importance of digital transformation in today’s business landscape. The CDO is primarily responsible for leading digital initiatives from a business perspective, driving the integration of digital technologies into all areas of the organization. They work closely with business lines, especially those that are customer-facing, to redefine how the company operates and delivers value to its customers.
Companies that require significant digital change—whether due to industry disruption, competitive pressures, or evolving customer expectations—often appoint a CDO to spearhead these efforts. The CDO focuses on transforming business models, optimizing customer experiences, and leveraging data analytics to inform strategy.
While the role is strategic and influential, it is often not positioned at the executive C-level. Instead, the CDO may function more like a transformation program manager, working across departments to implement digital strategies. Their success depends on collaboration with other leaders, including the CIO and CTO, to ensure that technological capabilities align with business objectives. This role is not as common as the CIO and CTO roles, and in the long term, these roles may converge.
The roles of CTO, CIO, and CDO are integral to the success of modern organizations, but their functions and importance can vary widely depending on the company’s size, industry, and strategic focus.
Conclusion
The roles of CTO, CIO, and CDO are integral to the success of modern organizations, but their functions and importance can vary widely depending on the company’s size, industry, and strategic focus. Understanding these nuances is essential for structuring leadership teams effectively and leveraging technology to achieve business goals.
In startups, the CTO is often the technical visionary, driving product development and innovation. In larger corporations, the CTO may focus on enterprise architecture and innovation, sometimes stepping into a board-level role as technology becomes central to business strategy. The CIO traditionally manages information systems and IT operations, but their role is evolving as technology budgets shift to business units and digital transformation becomes a priority. The CDO emerges as a key player in driving digital change from a business perspective, bridging the gap between technology and business strategy.
As technology continues to reshape industries and consumer behaviors, the collaboration between these roles becomes increasingly important. Organizations must adapt their leadership structures to remain competitive, fostering synergy between technical expertise and strategic vision.
Based on this, you will see that with the right experience, a person might fit into different roles such as CTO, CIO, or CDO. Ultimately, it depends more on an individual’s expertise, activities, and capabilities within a specific domain.
In my next column, I will delve deeper into the specific activities and responsibilities associated with these roles, exploring how they contribute to organizational success and how they can collaborate effectively to drive innovation and growth.
Feel free to reach out to me at [email protected] if you have any questions or comments.
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