Not so long ago, the CIO was the sole representative of the technology world in the boardroom. His domain was servers, systems, networks, security and IT infrastructure performance. Today, however, this specialisation is no longer enough. In a world dominated by data, platforms and digital customer experiences, companies need something more: a leader who brings technology and business together. This is how the new technology trinity emerged: the CIO, CTO and CDO – and with it came questions about the division of competences and the impact on the future of companies.
Three roles, three worlds
The Chief Information Officer (CIO), Chief Technology Officer (CTO) and Chief Digital Officer (CDO) often co-exist in the same organisation, but rarely work together on an equal basis. Each is responsible for a different dimension of transformation: CIO for IT stability and efficiency, CTO for technology innovation and CDO for digital transformation of the entire company. On paper, this division looks logical. In practice – it leads to ambiguity and rivalry.
CIO: Guardian of stability
For years, the CIO was the main technological decision-maker. He managed infrastructure, internal software, systems security and operational support. In manufacturing or sales companies, he was often invisible – until something stopped working.
In recent years, the CIO has become more strategically influential, with responsibilities such as cloud migrations, process automation and systems integration. However, his profile still remains ‘inward’ – focused on the organisation, not the market. It is this gap that has led to the separation of the CDO function.
CTO: Engineer of the future
The CTO is a technical visionary – someone who does not so much manage as create technology. His or her domain is new digital products, solution architecture, R&D, DevOps and software engineering. In SaaS companies or startups, the CTO is often the number two role after the CEO.
In non-technology organisations, the CTO is sometimes reduced to being an expert on ‘advanced topics’ that the rest of the board does not understand. This is another argument for appointing someone who can combine technology with the language of business – and this is where the CDO comes in.
CDO: Architect of cultural change and business model
The Chief Digital Officer is not another version of the CIO with a trendy add-on. It is a position from a different organisational logic: strategic, market, customer-centric. The CDO doesn’t make sure the systems work – just that the company has a future in the digital age.
In practice, this means responsibility for digital sales channels, user experience, customer process automation, data integration and the development of new technology-based business models. The CDO often reports directly to the CEO or COO – and not by chance: his or her actions have an impact on revenue, competitiveness and market position.
Boundaries are blurring – but not disappearing
In many companies, the responsibilities of the CIO, CTO and CDO are starting to overlap. Everyone has something to say about cloud, data, automation or security. The problem is that the boundaries are not clearly established – and this often leads to tensions. The CIO sees the CDO as someone who is ‘trespassing’ on his or her territory. The CTO is reluctant to share influence on technology direction.
Meanwhile, in well-run organisations, these roles are clearly demarcated: The CIO is responsible for stability and operations, the CTO for innovation and product, and the CDO for transformation strategy and the development of the company’s digital operating model.
Who really has a say in the future of the company?
The CDO is increasingly becoming the leader of change that was previously spread across different departments. He is the one who integrates the perspectives of sales, marketing, IT, finance and operations – and translates them into one coherent transformation plan. In practice, this means that his or her role becomes strategic: he or she influences the development of the company’s digital competences, customer relationships, organisational structure and technology investments.
This is also the reason why more and more CDOs are being promoted to the role of CEO. A person who is able to lead a company through a complex transformation process gains not only technical experience, but above all leadership experience.
Does every company need three technological leaders?
There is no single answer. In companies with a high level of digital maturity – for example, in banking, retail or the automotive industry – a model with three roles may be justified. But in smaller organisations that are just starting the transformation, the CDO may combine the roles of CIO or CTO, acting more as a change agent than a technology specialist.
The key is not the number of roles, but the clarity of responsibilities. An unclear division of responsibilities between the CDO, CIO and CTO leads to decision-making paralysis, conflicting priorities and ineffective implementation of change.
A new paradigm in technology management
Digital transformation is no longer the domain of IT – it is a managerial, strategic and ongoing topic. CIOs and CTOs remain indispensable, but it is the CDO who brings the most needed competence today: the ability to translate complex technological capabilities into real, measurable business change.
