The tech industry is a whirlwind of constant change. Over the last decade, the sector has evolved at an unprecedented pace, often leaving both consumers and businesses struggling to keep pace. And at the forefront of this digital revolution stands the Chief Technology Officer (CTO).

The role of the CTO has changed significantly over the years, and it requires a lot more than keeping up with the latest tech trends. Gone are the days when the CTO was only looking after the tech stack. Today, CTOs work hand in hand with CEOs and they’re expected to be strategic leaders who can help their organisations navigate the complex world of technology and drive innovation.

From backroom to boardroom

CTOs have experienced a huge shift in how they are positioned in the workplace. They are no longer part of a small-medium size team that operates separately from the rest of the business; they are the key to tangible business growth and perhaps one of the most crucial parts of a leadership team.

The main duty of CTOs is to maintain – and where available, to modernise – tech, and to decide when something has kicked the bucket and no longer has a purpose. These things require people power, specialist skills and money. Needless to say, the investment in the role is vital.

Tech leaders often feel burnt out, or worried that they don’t have the resources and support needed to do their job well. In fact, for many tech executives, the global shortage of software developers has impacted their productivity and ability to implement key technology initiatives, like business digitalisation.

The talent crunch

Despite the shortage in software developers, CTOs should not be hired as a cover-all solution, and companies should always seek to hire a separate Lead Developer role.

For example, the CTO is responsible for the entire technical team across the business, while the Lead Developer looks after a smaller team of developers. The CTO also requires an in-depth understanding of what companies need in order to undergo digital transformation and keep up to date with tech processes, whereas the Lead Developer needs a practical understanding of development and can align teams to produce a minimum viable product.

Both of these roles are highly sought after in the tech industry, and although CTOs often have some background in development and programming, they exist as two separate roles for good reason, and they should be hired as such.

Managing scope creep

Scope creep has a bad rep, and that’s because a lot of traditional development solutions are not set up for changes to be made beyond the agreed scope. In an ideal world, the security and predictability provided by a well-defined project scope would be invaluable; however, our reality is far from perfect.

The saying goes, “You can never set foot in the same river twice,” and the same is true for leaders in tech – everything evolves from the moment you start working on a project. There is much to appreciate about technology that remains stable and adaptable when changes are necessary during development. Today, innovative CTOs are on the lookout for software solutions that come with the flexibility of making that important U-turns if ever needed.

The customer is in the driver’s seat

Today, for innovative CTOs, it’s all about being in touch with the customer journey and keeping up with customer needs as they continue to change. You may have heard how digital transformation is driving a new customer experience, but has it crossed your mind that it might be the other way round?

Although it might seem like a ‘what came first, the chicken or the egg?’ scenario, the numbers suggest that the digital market is being led by consumer behaviour.

Optimising the balance sheet

Technological transitions are unpredictable, but with the right outlook and determination, CTOs can identify investments that will promote development and success, allowing them to confidently navigate the unknown.

Nowadays, CTOs are looking for the most effective initiatives to keep their teams productive and engaged for years to come. And during the process, they will gain essential expertise in cost management while trailblazing new technology.

In fact, CTOs can regulate expenditures in various ways. For example, they can move to third-party software support and consider managed services. They should also be aware of the software that teams use within the company and employ sustainable cloud management strategies. All of this will aid CTOs in becoming the guiding light to the business’ digital journey.

Building the foundation for success

In the midst of the current AI revolution, CTOs must ensure that their data pipelines are streamlined.

In fact, data pipelines require adequate training and preparation to allow AI-assisted tools to work best. This involves standardising service management methods and developing a repository of structured content that can be trusted as a data source.

Consider data architecture to be the blueprint for your AI command centre. It’s critical to examine the organisation’s readiness and determine the business use cases best suited for AI. This includes assessing the team’s abilities, the tools at their disposal, and the operational processes required to produce accurate data and efficiently design and deploy models.

Your data pipelines will only be ready to train AI models that can unleash new business insights and possibilities if you have the proper foundation and infrastructure in place.

Moreover, enterprise chatbots can provide staff with real-time access to data and optimise procedures to increase data quality. These chatbots are adaptable and scalable, accepting new data sources and increasing business requirements.

Moving forward, CTOs will continue to face challenges such as managing scope creep, optimising spending, and driving customer-led digital changes. However, their ability to implement AI effectively will be the key differentiator. Those who succeed will set themselves apart, leading their organisations to new heights in the digital age.

Rohan Patel is the SVP of engineering at Builder.ai.

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