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CTO Connection
Chad Dickerson

FAQ on CIOs and CTOs

SINCE I BEGAN writing this column four weeks ago, most of the e-mail I get asks the same question: What is the difference between a CIO and CTO? People I meet in person ask me this question frequently, too. I offer the following instructive parable.

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Let's pretend that you are working late at the office on a high-pressure deadline. You are ready to send a critical e-mail to wrap things up for the evening, and five seconds before you are about to press Send, the office LAN goes down.

The only people left at the office are the CIO and the CTO. If you call the CIO and explain the situation, he or she will probably tell you that help desk hours are between 8 a.m. and 7 p.m. and ask you to file a trouble ticket. If you call the CTO, there's a good chance he or she will go into the wire closet, check a few things in the patch panel, and get you running again.

Now, this is obviously a gross oversimplification -- many CIOs are quite capable technologists who can roll up their sleeves and fix an ailing network, thank you very much. In some companies, the CIO/CTO is a combined position and the distinction is murky at best. But for the most part, CIOs are developing into very different positions with separate focuses and responsibilities. Since joining InfoWorld, I have been studying the evolution of these two increasingly distinct jobs and have noticed three distinguishing characteristics of the CTO position versus that of the CIO.

External vs. internal focus

Whereas the CIO is often focused on bottom-line internal IT efficiencies, the CTO acts in a more strategic role, leveraging technology to push top-line revenue, working on new products, investigating and recommending emerging technologies, and interacting closely with business partners. For the CTO, IT is not a cost center but a key part of the revenue-producing machine of the company. In large companies, the CIO is increasingly likely to function in more of a COO/CFO sphere, watching expenses and looking for cost savings.

Passion for technology, but in a biz way

Most CTOs have a passion for technology detail within the larger context of driving the strategic goals of their businesses. Many CTOs, myself included, joyfully run home networks that rival the Pentagon's in complexity and security. This passion is illustrated by the educational focus of CTOs versus CIOs: 72 percent of CTOs have an undergraduate degree in technology, whereas only 38 percent of CIOs have a technology degree. More importantly, the true value of a CTO is demonstrated in the combination of business acumen with technology capabilities: 36 percent of CTOs have MBAs, according to a recent InfoWorld study.

Compensation

As Randy Newman sang, "It's money that matters," and it appears that chief technology officers are doing quite well in that department. InfoWorld recently released its 2001 Compensation Survey, and my CTO brothers and sisters were surely pleased to discover that the average CTO salary is $183,535 compared to the average CIO salary of $118,278. To paraphrase a line from the movie Ferris Bueller's Day Off, referring to a CTO this time instead of a Ferrari: "If you have the means, I highly recommend picking one up."

Of course, distinctions between CTOs and CIOs vary based on company size, industry, and a host of other factors -- your mileage may vary. Drop me an e-mail and let me know how these titles stack up in your companies and how your perceptions compare and contrast to mine.


Chad Dickerson is InfoWorld's CTO. Contact him at chad_dickerson@infoworld.com.



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