Fractional CTO: an essential role to transform your business

Digital transformation is a reality and no longer an option. Most small and medium-sized businesses understood it is not about adopting or developing technology but digitally transforming from it. That is the way to rethink your business, understand how to differentiate yourself and grow.

Today, any SME can access the same technology as any large organization, which places them in a competitive framework that was unthinkable before. This is a great opportunity but still a significant challenge.

In this context, the CTO role became increasingly important.

What is a CTO?

A chief technology officer (CTO) is an executive in charge of the technological needs of a company. The individual focuses on technological and scientific matters and is usually the leader of a technical team. A CTO can also handle the research and development work of the organization of which he is a part.

The CTO is the one who oversees the entire technological strategy of the business and defines action plans related to the company’s line of business. It enables the efficient use of technology to improve the products or services offered by the company.

How did the CTO role come about?

Previously, the CIO (Chief Information Officer) of a company performed two roles: as CIO and as CTO. The person who occupied that role worked as a kind of translator since it was not common for business people to understand technology.

Today, business and technology are merged, and it is no longer necessary to set up a bridge between the two. Companies need a strategist who understands business and technology while setting the course towards a better path. The CTO must know the latest trends in the field and think about how technology can change and improve the business.

This role was created 15 years ago, and today it has immense importance in competitive companies.

Different CTO models

There are different CTO models, depending on the time for which they are hired and the responsibilities they are in charge of.

1/ Fractional CTO

As the name implies, a fractional CTO takes care of a fraction of the responsibilities of the company and focuses on specific areas according to the requirements of the company. It is a very effective modality since it is focused on solving specific needs and problems. It is ideal for small and medium-sized companies looking to launch new products and services, as it will allow them to ensure proper implementation and effective problem-solving.

2/ Full-time CTO

A full-time CTO is a resource dedicated entirely to achieving the best interests of the company.

3/ Part-time CTO

It is the individual who takes care of all the responsibilities, but only part of the time. It differs from the fractional CTO in that it only handles a certain number of responsibilities depending on the needs of the company.

Companies that are not sure how to use a fractional CTO widely used this modality. In this way, they can hire a part-time CTO so they can identify the particular needs of the business.

4/ Interim CTO

They are transitional CTOs. They are typically hired while a company is replacing a CTO or choosing a new one. The interim CTO will be in charge of solving the technological needs of the company at that time of transition. For example, if the current CTO of a company leaves, an interim is hired to perform his duties. But he is also the one who will lead the search for the new CTO as he knows the specific technical knowledge of the company and the technical needs of the position. For all this, he is the ideal person to find his successor.

Tasks and responsibilities of a fractional CTO

A fractional CTO is a multi-faceted and experienced technology professional who serves as a Chief Technology Officer in a company fractionally.

The CTO manages the technology strategy, leading the development, planning, integration and implementation of software. He pursuits the improvement of the final product or service in terms of quality, continuity, efficiency and safety.

The common tasks and responsibilities of a fractional CTO are:

Design and carry out the technological strategy of the company, implement it, make the necessary adjustments and execute it.
Decide which technologies are adequate for solving problems and monitor their correct operation.
Monitor technological, social and scientific trends.
Be responsible for leadership and technology management.
Identify opportunities and technological risks
Be responsible for the development and delivery of technology products and services
Be in charge of the software development management.
Ensure that the technology is used efficiently and profitably.
Design the technology roadmap and align it with business objectives.
Manage strategic alliances.
Manage the technology team
Develop research and evaluation of new technologies.
Be in charge of capital allocation, ROI assessment and budgeting.
Overcome common challenges faced by any software development team on a day-to-day basis.
Apply digital transformation and strive for the people who work in the company to become familiar with it.
Create general technology standards and practices within the company.
Be responsible for risk management.
Implement data protection strategies.
Develop security procedures.
Communicate the technological strategy of the company to partners, managers, investors, and employees.

Skills of a Fractional CTO

Some skills that we can find in a fractional CTO are:

Technical competence.
Ability to write code.
Strategic vision.
Problem resolution.
Teamwork.
Business sense.

Advantages of hiring a fractional CTO

The fractional services of a CTO can be extremely beneficial to any business. These are some advantages of hiring a fractional CTO:

It offers the same experience and skills (most times greater) than a full-time executive. Apart from this, the salary, bonuses, and overhead that are often required to attract and keep a full-time CTO are no drawbacks.
He is an independent and reliable advisor who brings an external perspective on the current staff and technology landscape.
It enables companies to align product development with business goals without hiring a full-time CTO.
The CTO provides the experience of working with different companies, which is very useful when developing or launching new products or improving customer services.
As they work with different companies, the CTOs have external knowledge that brings new ideas and an impartial view of best practices and vendors, helping the development team to be more proactive and effective.
They can face challenges and determine the best path to fix problems.

When is it time to hire a CTO?

Not all companies need a fractional CTO. The following are some indicators that your company requires one:

Your company needs a CTO but cannot afford a full-time employee, or there is not enough work for him to be hired.
The company is working on a specific project that requires the knowledge of an experienced technology executive.
You understand that your company needs to invest in technology and digital transformation, but there are no technology experts on the team.
The company has a group of software developers, but none of them has sufficient experience or adequate knowledge of the industry to make strategic technology decisions.
Your business plans to launch a product or service and you need someone to lead the technology strategy and ensure its timely implementation.
The company does not reach its objectives, or it does so with great difficulty, and the growth of your business becomes more and more difficult.

A fractional CTO for your business

At Syloper we offer you the fractional CTO service (Director of Technology), through which we provide reliable and first-class advice for your company.
Through this service, we provide you with knowledge and experience in technology without the long-term commitment and financial burden of hiring a full-time CTO.
Our fractional CTOs provide:

Strategy and technological vision.
Identification of problems and an action plan to solve them and speed up progress.
Roadmaps to take your company’s technology to the next level.
Work with your company’s current team to implement the strategy.
Security, scalability and sustainable growth.

Our CTOs will have a transformative impact on your business.
Increase efficiency, speed up the delivery of products and services, and improve their quality.

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❖ We are Syloper, a software development company based in Rosario, Argentina and with projection throughout Latin America and the entire world.

✉ If you need us to help you make your idea come true: contact us.