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

The role of the CTO has changed significantly over the years and requires much more than just keeping up with the latest technology trends. The days when the CTO only looked after the technology stack are over. Today, CTOs work hand in hand with CEOs and are expected to be strategic leaders who can help their organizations navigate the complex world of technology and drive innovation.

From the back room to the conference room

The role of CTOs in the workplace has fundamentally changed. They are no longer part of a small to medium-sized team that operates separately from the rest of the company. They are the key to tangible business growth and perhaps one of the most important parts of a leadership team.

The main job of CTOs is to maintain and, where possible, modernize technology and decide when something has given up the ghost and no longer serves a purpose. These things require human skill, expertise and money. It goes without saying that investing in this role is critical.

Technology leaders often feel burned out or fear that they lack the resources and support they need to do their jobs well. In fact, for many technology leaders, the global shortage of software developers is impacting their productivity and ability to implement important technology initiatives such as enterprise digitization.

The lack of talent

Despite the shortage of software developers, CTOs should not be hired as a panacea. Companies should always look to fill a separate lead developer position.

For example, the CTO is responsible for the entire technical team of the company, while the lead developer takes care of a smaller team of developers. The CTO also needs to have a deep understanding of what companies need to achieve digital transformation and stay up to date with the technical processes, while the lead developer needs a practical understanding of development and can align teams to create a minimum viable product.

Both roles are in high demand in the technology industry, and while CTOs often have a background in development and programming, they are two different roles for a reason, and they should be hired as such.

Managing Scope Creep

Scope creep has a bad reputation, and that’s because many traditional development solutions aren’t designed to accommodate changes beyond the agreed scope. In an ideal world, the certainty and predictability provided by a well-defined project scope would be invaluable; however, our reality is far from perfect.

They say, “You can never step into the same river twice,” and that’s true for leaders in the technology industry too – everything evolves from the moment you start working on a project. There’s a lot of good about technology that remains stable and adaptable when changes are needed during development. Today, innovative CTOs are looking for software solutions that offer the flexibility to make important pivots when needed.

The customer is at the wheel

Today, innovative CTOs are all about tracking the customer journey and keeping up with ever-changing customer needs. You may have heard that digital transformation leads to a new customer experience, but has it ever occurred to you that it could be the other way around?

Although it may seem like a “which came first, the chicken or the egg?” scenario, the numbers suggest that the digital market is driven by consumer behavior.

Optimizing the balance sheet

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

Today, CTOs are looking for the most effective initiatives to keep their teams productive and motivated for years to come. And in the process, they’re gaining important expertise in cost management while developing groundbreaking new technologies.

In fact, CTOs can regulate spending in a number of ways. For example, they can switch to third-party software support and consider managed services. They should also be aware of what software teams in the company are using and employ sustainable cloud management strategies. All of this will help CTOs become the guiding light of the company’s digital journey.

Creating the foundation for success

Amid the current AI revolution, CTOs must ensure their data pipelines are optimized.

In fact, data pipelines require proper training and preparation for AI-powered tools to function optimally. This includes standardizing service management practices and developing a repository of structured content that is trusted as a data source.

Think of data architecture as a blueprint for your AI command center. It’s important to assess organizational readiness and determine the business use cases that are best suited to AI. This includes evaluating the team’s skills, the tools at their disposal, and the operational processes required to create accurate data and efficiently design and deploy models.

Only when you have the right foundation and infrastructure in place will your data pipelines be ready to train AI models that can unlock new business insights and opportunities.

Additionally, enterprise chatbots can provide employees with real-time access to data and optimize processes to improve data quality. These chatbots are customizable and scalable, accepting new data sources and increasing business needs.

Going forward, CTOs will continue to face challenges such as managing scope creep, optimizing spend, and driving customer-centric digital change. However, their ability to effectively implement AI will be the key differentiator. Those who succeed will stand out from the crowd and take their organizations to new heights in the digital age.

Rohan Patel is SVP of Engineering at Builder.ai.

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