In today’s market, technology is an immensely powerful tool. Embracing innovative technologies can catapult companies to the forefront of their industry. At the same time, outdated technology can hold companies back and make it difficult to scale appropriately. Although not every startup needs a chief technology officer (CTO) initially, there will likely come a point when the complexity of the technology infrastructure requires a dedicated, high-level manager to ensure it remains a facilitator rather than a hindrance to the organization’s growth and success.
As the company grows, leadership must consistently evaluate the feasibility of hiring a CTO to support and drive further technological advancement. A few telltale signs can help make this decision easier. Some of the key signs that your company may need a CTO include:
- Investments in technology do not have the expected return.
Even a small technological investment can cost a significant amount of money. This sacrifice seems worthwhile with the right return, but it can lead to a lot of frustration and anger when that return fails to materialize. In this scenario, a CTO can provide invaluable insights by thoroughly analyzing the company’s technology utilization and identifying the most advantageous options moving forward.
Often, when technology investments do not pan out, it is not because the choice was wrong. Rather, the organization may lack the right leadership to inspire people to adopt the technology readily and integrate it into the corporate culture. CTOs can also be extremely helpful in this situation, especially if no one else at the company has deep technical expertise. While technology vendors will work to facilitate integration, it is different from working with an in-house leader.
- Technology has resulted in unexpected security issues.
While technology undoubtedly holds the potential to boost profits, it also exposes companies to cyberattacks, particularly when hardware and software become outdated, creating multiple vulnerabilities. Regular updates and patches ensure that systems remain secure. If these steps are not being taken, then it can indicate it is time to hire a CTO to orchestrate cybersecurity and provide the necessary training to staff to keep company and customer data safe.
Today, companies should have at least two-factor authentication, as well as stringent protocols for passwords, to protect their systems. Companies that depend heavily on technology cannot treat cybersecurity as an afterthought. If this is happening, it is critically important to recognize it and address it with a CTO.
- The company loses business because of technology problems.
A clear indication that an organization requires a CTO is when it begins experiencing financial losses due to technology-related issues. Maybe the website keeps going down so that customers cannot order when they want and instead turn to competitors, or perhaps the internal system fails and the company must take stock manually. Many issues can arise because of technology that is not up to par.
When this happens and there is no clear solution, a CTO can provide direction. Even if the solution is clear, it may make sense to bring a CTO on board to optimize technology and prevent similar problems from happening again. These technological issues can arise for many reasons, and it often takes a dedicated leader to tease them out effectively.
- Customer demands are overwhelming the company.
People hold high expectations for the companies they choose to support, and these expectations continue to evolve and become more intricate all the time. Consumers want a personalized experience that is only possible through advanced technology. However, they may not always explicitly express their desires, making it crucial for companies to reach out proactively and inquire whenever negative reviews surface or retention rates begin to decline.
If the company observes a loss of business to competitors, it should prompt executives to investigate the reasons behind this trend. In many cases, lack of appropriate technology is the underlying issue. A CTO can help the company adopt the technology most capable of creating the type of experience that customers want and, more importantly, stay ahead of their expectations in the future. Often, technology can be used to automate a personalized experience to drive profits while creating virtually no extra work for employees.
- Rival companies are pulling ahead in the technology race.
Companies must continuously monitor their competitors. When it becomes apparent that competitors are adopting novel technologies that were not previously considered, it might be the right time to consider hiring a CTO. Too often, leaders think little of the new technologies their competitors adopt and end up behind the curve. If this happens, it can be virtually impossible to catch up to them. Therefore, it is important to consider a CTO immediately so the company can move quickly and anticipate the next move.
Considering that technology may include online platforms, back-end systems, apps, and more, having a person in charge of coordination and adoption can prove essential for success as the company continues to develop its products and services.