The Evolving Role of the Technology Officer: Leading Change and Growth

By Matthew Johnson 2024-09-18

As businesses face rapid digital transformation, technology officers are stepping into more strategic and integrated roles within organizations. Chief Information Officers (CIOs), Chief Technology Officers (CTOs), and Chief Digital and Information Officers (CDIOs) are no longer just enablers of technology—they are becoming orchestrators, builders, protectors, and operators of business value. This expanded role requires them to balance their technical expertise with a broader vision for business growth and resilience, particularly as technologies like AI and automation reshape industries.

This post explores the four critical roles that technology officers must adopt to lead their organizations in this new era of digital transformation.

The Orchestrator: Leading Digital and AI Integration

Technology has become the backbone of business strategy, and as orchestrators, technology officers must integrate AI and digital solutions across all facets of the organization. The challenge lies in moving beyond implementing isolated technologies to creating value at scale. This involves aligning technology initiatives with business objectives and building a holistic strategy that transcends departmental silos.

For example, many organizations fall into the trap of running disconnected AI pilots that fail to deliver measurable value—what’s referred to as “death by a thousand pilots.” To avoid this, technology officers must act as orchestrators who ensure that AI and digital initiatives are not just technical experiments but are fully integrated into the business strategy. This requires aligning adoption, data, and talent with business goals.

Orchestrating this level of digital transformation also means shifting the focus from purely supporting technology to driving business outcomes. By partnering closely with business leaders, technology officers can prioritize opportunities where digital and AI can have the most significant impact on the bottom line. This shift also includes adopting a more hands-on approach to managing both technology and business teams, with a focus on achieving profit and loss (P&L) accountability.

The Builder: Creating Digital-First Businesses

As the pace of technological change accelerates, technology officers are also expected to build new revenue streams through digital-first and AI-enabled products and services. Moving from managing internal technology to creating market-facing digital products represents a fundamental shift in the role of technology officers.

Generative AI and machine learning are becoming essential tools in this new role. With the power to drastically reduce costs and improve software development processes, these technologies open up opportunities to innovate at scale. Technology officers must harness these capabilities to create customer-facing products that not only support the business but also drive new growth opportunities.

Successful builders know how to leverage their organization’s unique data and technological assets to create value. For example, a European materials company transformed its internal expertise in managing plant operations into a Software-as-a-Service (SaaS) platform for external clients. This ability to turn internal capabilities into marketable services will define the next wave of tech-driven business growth.

However, technology officers must avoid the trap of creating products without first understanding the market’s truely needs. By combining customer insights with advanced analytics, they can ensure that their products are aligned with demand and capable of scaling rapidly.

The Protector: Safeguarding Business Resilience

As businesses become more digital, the risks associated with cyber threats, data breaches, and system downtime are increasing exponentially. The role of the technology officer as a protector is becoming more critical than ever before. With the rise of generative AI, which can exponentially increase the volume of code and potential vulnerabilities, technology officers must proactively secure the enterprise.

Cybersecurity is no longer just an IT function, it is a business imperative. Technology officers need to move from a compliance driven approach to cybersecurity to a more proactive role in ensuring enterprise resilience. This means embedding security into every aspect of the organization, from product development to day-to-day operations. It also involves creating systems that are capable of quickly recovering from cyberattacks and other disruptions.

A key element of this protection is fostering digital trust. With consumers increasingly concerned about data privacy and security, technology officers must work closely with legal and marketing teams to ensure transparency around data practices. Additionally, they must be prepared to address the evolving landscape of global data regulations, ensuring that the company’s policies are up to date and compliant.

The Operator: Integrating Technology into Core Business Functions

Finally, technology officers are becoming operators, driving the integration of digital tools and AI into core business functions such as customer experience, procurement, and operations. By embedding technology into every layer of the organization, they can create efficiencies, enhance customer satisfaction, and unlock new value.

AI and automation are particularly powerful in driving operational improvements. For example, in customer support, AI-driven tools can significantly reduce response times while improving service quality. In supply chain management, automation and predictive analytics can lead to more efficient procurement processes and faster time to market. By overseeing these initiatives, technology officers can ensure that the organization is fully leveraging technology to stay competitive.

This shift also requires a deep understanding of how different business functions operate. Technology officers must work closely with teams across the organization to ensure that technology is being used in ways that enhance overall performance. This can involve taking on additional responsibilities beyond IT, such as overseeing customer experience or even leading operational functions.

The Future of Technology Leadership

As the role of technology officers continues to expand, the distinction between technology leadership and business leadership is becoming increasingly blurred. Technology officers are not just overseeing IT infrastructure; they are now key drivers of business strategy and growth. This evolution requires them to adopt a broader, more integrated approach to leadership, ensuring that technology serves as a catalyst for innovation, resilience, and value creation.

By embracing the roles of orchestrator, builder, protector, and operator, today’s technology officers can lead their organizations through the challenges and opportunities of the digital age. This new era of technology leadership will not only shape the future of businesses but also redefine the role of technology in driving long-term success.

This article is inspired by McKinsey's article called "A new dawn for the technology officer."

Read more at https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/a-new-dawn-for-the-technology-officer#/