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The accelerated process of digital transformation translates itself into the growing importance of the position of Chief Technology Officers (CTO), i.e. those who manage technology issues within a company. CTOs do not have an easy task – especially when operating in such a dynamic and ever-changing market.
Nevertheless, the role of CTOs or technology managers is invaluable in the context of building the competitiveness of companies in terms of innovation and technological optimisation of work or processes. What do new technology experts currently face on a daily basis and what challenges will they face in the coming months?
The pandemic period of reduced human contact and the need to work remotely has become a driving force towards digital transformation for many companies. Companies that treated entering the world of new technologies as a curiosity and a ‘song of the future’ in the pre-COVID-19 world have had to ‘move’ work and processes into the digital world overnight. And even the most reluctant organisations appreciated the implementation of IT solutions and their significant impact on business development. As digital transformation has progressed, there have been further challenges that technology experts, or CTOs, are facing. Here are the top 8 challenges for CTOs in 2023.
One of the most important challenges for CTOs, especially at the beginning of their career in an organisation, is to develop a digital transformation strategy. Planning and then effective implementation is the main topic around which the day-to-day activities of the company’s technology managers should ‘revolve.’ In an era of very dynamic development of new technologies, the topics that need to be included in the aforementioned strategy multiply and the entire company is being prepared for it step-by-step. These areas include planning the development of the IT infrastructure itself, selecting the tools appropriate to the needs of the organisation, preparing the team for the implementation of individual elements of the strategy and checking it all from the point of view of security and compliance with current legislation.
The further the digitisation of businesses progresses, the more data they generate on a daily basis. Managing this huge amount of data is quite a challenge and requires both a well-thought-out action plan and a specific architecture. The main objective of the activities undertaken in this area is the efficient and secure flow and selection of data within the enterprise. Proper control of the Big Data topic translates into measurable benefits for the organisation, whether they are related to reduced operational costs or streamlined processes. Clearly, this is another topic that should be overseen by the Chief Technology Officer in collaboration with the IT department.
The security of IT systems and data is today one of the biggest challenges for organisations around the world. Companies are constantly battling potential data leaks, among other things, caused by the increasing activity and creativity of hackers and cyber criminals, not to mention employee inattention and so-called human error. One of the most important tasks of a CTO is to implement an early threat detection policy in the company based on, among other things, continuous monitoring of infrastructure, data performance and security. CTOs should also continuously train the entire team on policies and procedures related to the secure flow of data within and outside of the company.
Keeping up with the latest trends and technological developments is an important aspect of each CTOs job. In such an influx information and constant changes, ‘grabbing’ the right tools and innovations for your business from the market is no easy challenge. And this is only the beginning of the journey. The next step is to be able to adapt new solutions, tools and processes so that they actually translate into concrete values and business development. At the same time, it is worth remembering that it is not the technologies themselves that are the problem here – often the greatest resistance towards adopting innovations comes from employees. It is therefore important to develop an innovation-oriented employee culture within the company and build awareness of the need to be open to continuous technological development.
An issue related to the above is also the continuous development of the IT infrastructure itself. This is another task in the hands of the CTOs. In order to ensure the organisation’s continuous development, it is a good idea to outline a plan for scaling the infrastructure in advance so as to prepare for the next steps in both cost and operational terms. It’s also a good idea to prepare the whole team for this, let them have ‘in the back of their heads’ the fact that successive adaptations of further technological improvements await them. And that these are implemented for the benefit of all.
According to European Union forecasts, the number of people employed in the IT industry will increase from the current 9 million to 20 million by 2030. This is because digital transformation and automation will translate into a growing demand for employees in the broader IT industry. Meanwhile, meeting recruitment needs is becoming more difficult every year. For a long time, we have been struggling with a shortage of employees in the IT industry – especially the so-called talent. Despite tempting job offers, building a team based on qualified, valuable employees is a huge challenge. In the IT market (which is definitely an employee-oriented market), earnings are not the main argument for a potential candidate to want to work for a particular company. It is up to the CTO, among others, to create the kind of place and working conditions that will attract market talent on board.
The galloping digitisation of data has brought with it previously unknown issues, including a whole host of
data protection guidelines and various regulations related to keeping data secure. The issue of data management is constantly evolving – also in the context of regulations trying to keep up with new issues and challenges. It has not been made any easier by the fact that many countries have their own internal data protection regulations. Maintaining compliance with general data protection and regulations specific for different countries is therefore another challenge for corporate technology development managers.
In the topic of digitalisation, the headlines screaming from the front pages regard the replacement of certain professions by artificial intelligence or automation. This is the reason for resistance from employees when it comes to implementing high-tech solutions in the company. The role of the CTOs here is to plan technological improvements in a way that lets the people keep their jobs within the company. Of course, this is done with the support of the HR department which will plan an attractive alternative career path for employees in advance. Employees should know that technology can replace them in some of the tasks performed.
If you are responsible for technology development management issues in your company, face the above challenges and need support, you have come to the right place. At The Codest, we help companies comprehensively plan and implement their digital transformation strategy by becoming an external partner to the CTO.
n conclusion, the role of a CTO in navigating the complexities of digital transformation is multifaceted and critical to business growth. As tech leaders in high growth companies, they must adeptly manage data management while staying vigilant against cyber threats such as data breaches. The evolution of legacy systems into modern cloud technologies is essential in maintaining a competitive edge. A well-crafted business strategy that leverages the skills of skilled software developers is vital for achieving business objectives.
Ensuring robust security governance is a cornerstone of any technology strategy, particularly in the realm of cyber security. The common CTO challenges include not only addressing the CTO challenges but also overseeing tech-related projects and spearheading technological transformation. With data privacy concerns on the rise, CTOs need a comprehensive understanding of the entire technology landscape.
Leading an experienced team capable of tackling these complex challenges is essential. Addressing such challenges requires a balance of technical skills and a keen sense of technological innovations. Effective implementation systems can mitigate such threats, ensuring seamless integration of new technologies.
CTOs provide valuable insights into navigating data privacy regulations, essential in delivering better services, particularly in a hybrid work environment. As they face these challenges, CTOs continue to play a pivotal role in shaping the technological future of their organizations, ensuring resilience, innovation, and growth.
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