What is a CTO or Chief Technology Officer?

With the digital transition, we have witnessed the emergence of many new professional roles. One that is set to become increasingly important is the Chief Technology Officer (CTO), which can be translated as ‘head of technology’. In the past, those working in laboratories were only involved in research and development without considering business strategy; today, the situation has changed. The widespread and growing use of technology in products and business processes has made CTOs essential not only for companies operating strictly in the technology field, but also for those in more traditional industries. Let us now clarify in more detail what a CTO is.

What is a CTO?

The Chief Technology Officer is usually an engineer who holds an executive position within the company. This role embodies both technological and managerial expertise. They are often responsible for research and development programs, with the task of monitoring, directing, and communicating to company leadership the technological strategies to adopt. Therefore, the first answer to what a CTO is: a key figure in the internal organization and in the company’s future prospects.

The CTO emerges from the growing importance—and necessity—of technological leadership and therefore of an expert capable of identifying the most effective uses of technological tools within production and business processes, improving the company’s competitiveness. The CTO is often the right-hand person of the CEO and a member of the board of directors (in 60% of companies in the United States, 67% in Europe, and 91% in Japan).

These professionals play a fundamental role in driving innovation, managing technical teams, and aligning technological strategies with business goals. One of the main responsibilities of a CTO is to develop and execute the technology roadmap: which technologies to adopt, how, and when. This involves staying up to date in order to identify emerging tools, assess their potential impact, and implement them to gain a competitive advantage. In addition, the CTO is responsible for managing IT infrastructure, ensuring its efficiency, security, and scalability.

What does a CTO do?

To understand what a CTO does, it is important to note that their work covers both the company’s internal technologies and the technologies used for product development, sales, and product operation. This professional therefore manages plans related to updating the hardware and software used across all company processes. They occupy a central position in the technological field, making them essential in defining organizational strategies not only in terms of applied innovation but also in long-term vision and strategy.

In short, the CTO searches for and proposes technological solutions to organizational problems and development programs, from production to commercialization. However, their work is not limited to R&D teams and projects; it also includes the management, organization, and coordination of all people and resources involved in these areas, ensuring that identified solutions are both viable and efficient.

A CTO acts as a strategic leader and collaborates with other executives to align technological initiatives with the overall business strategy. They provide insights into how technology can drive growth, improve operational efficiency, and enhance customer experience. By leveraging their technical expertise, CTOs significantly contribute to the long-term success of the organization.

In addition to the above, among the most important responsibilities of a CTO are:

• the analysis of potential partnerships or acquisitions of other companies;
• promoting and overseeing proprietary technology (participating in fairs, conferences, etc.);
• managing relationships with suppliers;
• studying the impact of any technological decision on the company’s business.

How to become a CTO?

By now, it should be clear what a CTO is and how important the role is. However, to become a CTO, one must first consider the academic path to follow. Generally, a university degree in computer engineering or another IT/technology field is required. After graduation, it is advisable to further one’s education with a master’s degree. Among the most in-demand and suitable programs to become a CTO are the Master in Big Data & Analytics and the Global Master in Business Analytics and Data Strategy

Naturally, strong management skills are also essential, along with the ability to build relationships, which are crucial for coordination with leadership and key company roles. Knowledge of the industry in which the organization operates is also required, as well as experience in project management and a strong reputation among company stakeholders.

The selection of the CTO, being linked to corporate governance, is in the hands of shareholders. Therefore, becoming a CTO requires a career path of progression and consolidation within the company.

What is the salary of a CTO?

The CTO role offers numerous career advancement opportunities. As technology evolves, CTOs have the chance to remain at the forefront of innovation and shape the future of their industry. They can expand their skills, gain experience in emerging technologies, and become influential thought leaders in their field. The career outlook is excellent, but what is the salary of a CTO?

In a year, a Chief Technology Officer can earn between €90,000 and €100,000, typically starting from a minimum of €50,000–€70,000, depending on their relevance and reputation within the company and among stakeholders. Salary also depends on the country: the United States and the United Kingdom, for example, pay CTOs significantly more, as their markets are more technology-driven, with higher competition and demand for top professionals.