CIOs Vs CTOs

CIOs , CTOs and Their Roles in Major Enterprises Payam Ansari 1071200084 Instructor: Professor San

Who is a Chief Information Officer?
Who is a Chief Technology Officer?
What are the charactristics of them?
What are their roles in organizations?

Definitions:
Chief Information Officer (CIO):
The highest-ranking IS officer in the organization, usually a vice president, who oversees the planning, development and implementation of IS and serves as leader to all IS professionals in the organization.
Chief Technology Officer (CTO):
A high-level corporate officer who is in charge of all information technology needs of the organization. Sometimes the CTO reports to the CIO, but in some companies this person practically serves as the CIO.
EFFY OZ
(Management Information Systems , Fifth Edition)

In other words …
CIO is a person who is responsible for a company’s internal Information Systems and especially with the arrival of the Internet, sometimes in charge of the company’s e-business infrastructure.
“ CIOs are primarily concerned with how their companies consume and apply technology.”
CTO is an executive position whose holder is focused on scientific and technical issues within an organization.
“ CTOs are primarily concerned with how their companies create and export technology.”

CIO’s Qualifications:
Successful CIOs should have a mix of KNOWLEDGE and SKILLS .
In the past, many CIOs have degrees in computer science , software engineering , or information systems , but this is not universal.
Increasingly CIOs, especially those from a technical
background, are gaining an MBA to strengthen their
management skills .

Two leadership styles were identified as prevalent in successful CIOs:
Adapter:
Awareness of many political interests in decisions
Preference to use bargaining and compromise to decide how work is to be accomplished
Tendency to be means-oriented in developing interpersonal relationships
Tendency to base decisions on contingent considerations.
Collaborator:
Comfort with complex decisions
Preference or tendency to work toward consensus
Tendency to be concerned with people in forming interpersonal relationships
Tendency to base decisions on intuitive assessment of what will produce decisions benefiting all.

The results of recent survey which is taken from 229 CIOs show :
47 % of responders prefer or have a tendency for Collaborative leadership styles.
Only 17 % of responders prefer Adapter leadership style.
There was a high correlation between Adapter style and a number of important variables linked to CIO effectiveness, such as :
involvement in IT planning efforts
participation in non-IT decisions
and holding an executive officer position.

CIO’s Characteristics:
They are Business analysts and program managers
They are System architects
They are Programmers
They are cost account managers

"If a CIO doesn't understand his marketplace then he shouldn't be the CIO"
Paul Wybrow
(Vodafone CIO and CTO )

CTO’s Qualifications:
Successful CTOs have a strong technology background and knowledge of significant trends and features which differentiate technology products and services.
So CTO is a technology specialist!
According to recent InfoWorld study :
72 % of CTOs have an undergraduate degree in technology.
Software and Hardware engineering ,Network engineering, Mechanical engineering ,
electrical engineering are the most common degrees which CTOs have.
36 % of them have MBAs!!

What does a CIO do?...
CIOs are concerned with POLICY & STRATEGY .
They merge the recommended technologies with the strategic business objectives of organization.
They try to ensure that the company’s IT investments are aligned with its strategic business objectives.
In most businesses, the CIO is responsible for
the oversight management of such office automation
tasks as desktop architecture and support, network
implementation, software development, and
information management.

A CIO typically reports to the CEO. (in some organizations they can report to the CFO )
In a large enterprise the CIO delegates technical
decisions to employees more familiar with details.
A CIO is involved with analysing and reworking
existing business processes, with identifying and
developing the capability to use new tools with reshaping
the enterprise's physical infrastructure and network access.
They identify and exploit the enterprise's knowledge resources.
What does a CIO do?...

CIO is sometimes facetiously ascribed the backronym of
“ Career Is Over!”
(One recent survey shows an average turnover rate of 5.7 years . )

Briefly :
Some of the major responsibilities that are assigned to a CIO include:
Policy (standards, strategic planning, and security / privacy)
Operations (IT Service Delivery, portal / web management, enterprise applications, help desk, and project management)
Process (leadership, budgeting, project oversight, performance measurement, business process re-engineering, and procurement)

CTO’s Roles in Organizations:
The CTO will oversee technical staff at a company.
CTO will also oversee the work of the research and development organizations .
Managing a portfolio of R&D or production projects .
This person may report to the CIO.
The CTO Works closely with the CEO to determine what types of products or services the company should focus on.

CTO serves as the bridge between the technologists and program areas to help them understand these details in order to make disciplined and proactive IT investment decisions.
CTOs responsibilities categorized into three key function areas:
Strategy Formulation
Opportunity Evaluation
Tactical Planning & Prioritization

Strategy Formulation
Senior advisor to Bureau management and the CIO on technology investments and initiatives
Participating with CIO and other Senior IT leaders including Architecture team in planning the short and long-range technology strategies;
Providing leadership in ensuring appropriate technology usage
Assesses new and emerging technologies to determine application to Bureau programs and services
Identify and oversee business process driven technology improvements
Manages and chairs the IT configuration control board

Opportunity Evaluation
Identifies and evaluates new technology developments.
provides the Solution Architecture that satisfies business goals and objectives;
Maintains a current working knowledge of IT best practices and innovative solutions within both government and industry.
Develops, recommends, influences, and evaluates technology support, infrastructure operation.
Cultivates and maintains knowledge regarding IT best practices and innovative solutions.

Tactical Planning and Prioritization:
Recommends, develops, integrates, administers, and evaluates policies, procedures, and standards needed to provide flexible and cost-effective IT services.
Solves IT business issues while managing IT costs and risks;
Defines essential education and training required for the implementation, operations, and maintenance of Department information technology.

The distinguishing feature of all of these roles and responsibilities is their focus on operations .
The CTO role is a solid investment for most corporations and its value is derived from its function,not its seat at the table.

Three distinguishing characteristics of the CTO & CIO position:
External vs. internal focus
- The CIO is often focused on bottom-line internal IT efficiencies, the CTO acts in a more strategic role, leveraging technology to push top-line revenue, working on new products, investigating and recommending emerging technologies.
- For the CTO, IT is not a cost center but a key part of the revenue-producing machine of the company.
- In large companies, the CIO is increasingly likely to function in more of a CFO sphere, watching expenses and looking for cost savings

Passion for technology, but in a biz way
- Most CTOs have a passion for technology detail.
- Many CTOs, joyfully run home networks that rival the Pentagon's in complexity and security. This passion is illustrated by the educational focus of CTOs versus CIOs: 72 percent of CTOs have an undergraduate degree in technology, whereas only 38 percent of CIOs have a technology degree.

Compensation
Technology officers are doing quite well in that department. InfoWorld recently released its 2001 Compensation Survey, and the average CTO salary is $183,535 compared to the average CIO salary of $118,278 .

Why CIOs should bring in a CTO?
Most corporate officers boards consist of the company’s top leaders.
Each leader represents a unique interest of the company.
The CEO represents the driving force of corporate strategy, the CFO represents economic interests, and the CIO represents the information technology interests.
Each of these interests must be balanced against the others in light of the direction dictated by the CEO. Each of these interests must be balanced against the others in light of the direction dictated by the CEO. Therefore, the addition of another IT-biased interest, the CTO, to the officers’ table can offset the balance of the individual interests represented by the respective officers of the corporation.
Therefore, joint efforts of the CIO and the CTO will be required
in order to develop the technology solutions needed to meet the
goals of a modern business

The Chief Information Officer in academic environment
The position of Chief Information Officer (CIO) in academia is relatively new, dating from the late-1980s when information technology began increasingly to be of strategic importance in higher education.
There are numerous reports on the role of the CIO in business and in higher education and several will be quoted here. In general, the qualities that make an effective CIO are the same everywhere. However, the responsibilities vary significantly by institution.
Over the past decade, the role of Chief Information Officer has evolved into one that is strategically important in supporting the role of information technology at the institution.

Research data indicates that 24% of colleges & universities have a CIO and 42% have a Vice President for Information Technology. The data further show 26% of the CIO/VP positions report to the President and 38% report to the Provost. 49% of the top level IT officers at research institutions are members of the President’s cabinet.
Of the functions reporting to the top IT administrator, the top ten were:
networking (98%),
administration of IT organization (96%),
IT security (95.5%),
desktop / user support (95.5%),
operations / data center (95.5%),
IT Policy (93%),
administrative systems (91%),
web support (89.6%)
telephony (88%), and
academic / research computing (80.6%).

Some Interesting notes:
Fewer than 10 percent of major companies have a CTO. But if you look at the
10 percent that have a CTO, they are all the leading companies in their field. What sets those companies apart from their competitors is an emphasis on understanding the true value of technology. In addition, just about every single company in the past five years that has made any headway against an established incumbent player in its market usually has had a CTO on its senior leadership team.
The truth is that more than 90 percent of all major companies already have someone playing the role of the CTO in some other title, such as vice president of technology or chief architect.
Cots like Greg Papadopoulos at Sun Microsystems and Padmasree Warrior formerly at Motorola work closely with the CEO to help determine what types of products or services the company should focus on. As an example, during a long airplane ride, Ed Zander, Motorola CEO, and Padmasree Warrior, Motorola's CTO at the time, collaborated to identify the central technical goal for the company. The result was the tag line "seamless mobility". Warrior explained that fast digital networks would soon be ubiquitous and the cellphone was the perfect device to take advantage of these. With a cellphone a customer could access voice, data, and music anywhere, anytime – hence seamless mobility. Zander presented this message to an industry group at their destination and it became a core mission for the entire company.

CTOs like Greg Papadopoulos at Sun Microsystems and Padmasree Warrior formerly at Motorola work closely with the CEO to help determine what types of products or services the company should focus on . As an example, during a long airplane ride, Ed Zander, Motorola CEO, and Padmasree Warrior, Motorola's CTO at the time, collaborated to identify the central technical goal for the company . The result was the tag line " seamless mobility ". Warrior explained that fast digital networks would soon be ubiquitous and the cellphone was the perfect device to take advantage of these . With a cellphone a customer could access voice, data, and music anywhere, anytime – hence seamless mobility . Zander presented this message to an industry group at their destination and it became a core mission for the entire company .

When asked what a CTO is , Nathan Myhrvold , the former CTO of Microsoft and head of its massive research organization, replied, " Hell if I know . You know, when Bill [ Gates ] and I were discussing my taking this job, at one point he said, Okay, what are the great examples of successful CTOs . After about five minutes we decided that, well, there must be some, but we didn't have on the tip of our tongues exactly who was a great CTO, because many of the people who actually were great CTOs didn't have that title, and at least some of the people who have that title arguably aren't great at it . My job at Microsoft is to worry about technology in the future . If you want to have a great future you have to start thinking about it in the present, because when the future's here you won't have the time ."

References:
Websites :
www.cio.com
www.infoworld.com
http://en.wikipedia.org/wiki/Chief_information_officer
http://en.wikipedia.org/wiki/Chief_technical_officer
Articles :
Penrod, J.I. 2003. Creating a realistic IT vision: The roles and responsibilities of a Chief Information Officer. The Technology Source, March/April, 2003.
Thornton A. May , Chief information officer ABCs, Information Management & Computer Security, Vol. 3 No. 5, 1995, pp. 23-24 (MCB University Press Limited, 0968-5227)
Tom Berray, Raj Sampath, The Role of the CTO: Four Models for Success (April 2002)
Kost, J. 2002. Creating a public-sector CIO job description. Gardner Research publication SPA-17-2805.
Nelson, M.R. 2003. The CIO in higher education: leadership, competencies, effectiveness. EDUCAUSE Center for Applied Research. Volume 2003, Issue 22.

Thank You…!!!

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CIOs Vs CTOs

by Payam Ansari on Mar 15, 2009

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CIOs Vs CTOs — Presentation Transcript