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How Much Does a Fractional CIO Cost and Why Does Your Company Need One?

How Much Does a Fractional CIO Cost and Why Does Your Company Need One?

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Check out some of the Main Responsibilities of the Position of CIO of a Company:

Before we continue, check below the highest paid professions per year in Information Technology in the United States:

GRAPHIC How much does a Fractional CIO cost and why your business needs one 1

Why is the CIO important?

As technology begins to penetrate more and more into business processes and companies, the figure of the Chief Information Office (CIO) has been gaining even more prominence in the job market.

Many people do not know what a CIO is, others have never heard of it, even confusing it with CEO (Chief Executive Officer).
As a result, many leaders have faced the challenge of managing teams remotely.

Every business, essentially, needs a key piece of strategic positioning. The CIO, responsible for the company’s Information Technology (IT) sector, is the main player in this process.

Technology dominates every area of our lives. From personal life to work, we are always connected to some electronic device. Therefore, we will tell you the importance of having an IT sector in your company.

IT sector: what is it?

He is usually the bridge between theory and practice with regard to a company’s technology, present both in large corporations with robust IT sectors or even in the smallest organizations.

Today, technology is not just an operational complement, but a strategic arm of the business, being responsible for facilitating processes, reducing costs and enhancing employee productivity.

Furthermore, it is in the digital universe and cloud computing where several companies have already established their data infrastructure, as well as diversifying their business models, exploring the possibilities of digital sales.

So IT can be defined as a set of activities and solutions to develop computational resources to store, access and manage information.

Regardless of the company’s segment, it is possible to have an IT sector to bring solutions, add value and protect information.

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8 reasons why your company needs an IT department

If you don’t know the reasons to invest in an IT sector, let’s mention some reasons to invest in this segment. Shall we check?

1. Simplification of Tasks

Undoubtedly IT professionals simplify tasks to reduce time and increase company productivity.

Solutions such as call forwarding (PABX), new platforms that integrate projects, among other solutions to simplify everyday life.

2. Improves Communication

Information Technology can improve internal and external communication. This is because teams and operations are more organized and integrated.

In addition to improving internal communication between employees, customer service is also benefited.

3. Quick Fixes For Issues

One of the greatest benefits of the IT sector is the agility in solving the company’s and customers’ problems.

Failures in operational and administrative processes can be quickly resolved by the IT sector, without jeopardizing the company’s routine.

4. Economy and Cost Reduction

If tasks are simplified, communication is more integrated and problems are resolved more quickly, the company tends to save more on unnecessary expenses.

The focus on great results along with process savings is just one of the benefits that the IT sector offers to a business.

5. Greater Information Protection

Every company has data and information that needs to be kept safe to avoid fraud, losses and, of course, ensure the safety of customers.

The IT team is responsible for implementing features that have control over company information to keep data secure.

6. Competence

Many companies tend to delegate IT activities to employees who are not specialized in this area.

But this is a big mistake… The ideal and recommended thing is to hire an IT team or company to carry out tasks related to technology. Do not think of it as an expense, but rather as an investment, after all, the safety of your company and your customers is a priority.

7. Improvements and Updates

The IT sector seeks to improve the resources, processes and systems that the company has.

In addition to this search for improvements for your business, IT professionals implement and update resources to improve daily work.

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8. Positive Return

If the company has the right and up-to-date resources to carry out daily tasks, the productivity of its employees is sure to increase.

As a result, the company’s profitability can also increase – bringing positive returns.

Evolution of the Profession CIO

A few years ago, when technology was not so advanced and also not very important in the view of companies, the professionals responsible for this work did not necessarily need to have a university degree or even a specialization to practice the profession and be a great professional. The key trait was strong technological ability and an engineering mindset.

But as technology progressed, the processes started to become more and more complicated. Big companies looking for more and more CIOs and preferably graduated in a technology-related area and with a master’s degree.

These days, CIOs hold certifications in multiple technology and business disciplines.

Establishing your business in front of competitors is extremely important in a market that is constantly evolving. Technology companies in the US are working to harness the full potential of one of the largest sectors of the US and world economy, as you can see below.

GRAPHIC How much does a Fractional CIO cost and why your business needs one 2

Skills Needed for a Good CIO

In addition to a solid background in information technology, which will give you the knowledge you need to occupy the highest position in the sector, a good IT boss must have some specific skills. Are they:

1. Leadership

Mandatory in any managerial role, leadership is an essential trait for a director of information technology.

To be a good leader, the CIO needs to be able to lead his team to success, engaging its members, delegating functions and monitoring the performance of each employee, in order to promote their development and professional growth.

2. Communication

There is no doubt that communication is one of the most important bases for the growth of any company.

As a member of the board and responsible for the IT sector, the CIO needs to have the skills to move and communicate both with the highest level and with his team, bridging the gap between both parties and providing the means for whatever is decided by the board. operate at maximum efficiency.

3. Constant Updating and Commitment to Innovation

We know very well that technology evolves by leaps and bounds. Therefore, being up to date is essential to keep the company moving, always evolving.

In this environment, those who do not update themselves become stagnant, being quickly overtaken by the competition. On the other hand, those who are tuned in and adopt new technologies first tend to come out ahead and, therefore, are more likely to stand out.

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Therefore, the CIO needs to be motivated by innovation, and always be aware of strategies and tools capable of improving the company’s performance.

What makes the CIO such an important role within a company?

Being an extremely relevant position for any company, what the CIO does is guarantee access to the best technology, allowing the company to keep up to date, making its processes increasingly productive and efficient.

The CIO has a strategic role in the management of the IT department, delegating operational functions to his team, supervising its performance, promoting innovation and managing deadlines and resources.

CIO with CEO thinking

Digital transformation can be defined as a process in which companies use technology to reform their organizational structures to achieve more performance and maximize value creation.

However, although in theory he is the main person responsible for IT within the company, the CIO often only assumes the role of ensuring the operation of new technologies that come from demands from other sectors, especially those operating. That kind of thinking is bad for the company and bad for the CIO’s career.

In order to position himself well within the company and lead it to succeed, the CIO needs to change his perspective and have a real vision of the business in which he is inserted, expanding his knowledge about the area of activity of the company he works for.

It is a challenge for the new CIO to get to know new technologies and how they can impact work in the organization. Through frequent conversations with operational teams and other directors, he needs to understand how activities are performed and how this can improve with the digital transformation.

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It is a challenge for the new CIO to get to know new technologies and how they can impact work in the organization. Through frequent conversations with operational teams and other directors, he needs to understand how activities are performed and how this can improve with the digital transformation.

In other words, for this position not to be the pinnacle of his career, the CIO needs to think and act like a technology CEO, with a holistic view of the company and the business, without being restricted to the day-to-day operations of IT. It ceases to be tactical and becomes strategic.

FAQ – Frequently Asked Questions About Chief Information Office (CIO)

1. How much does a CIO earn?

The remuneration of a CIO varies a lot, it will depend on the company that is hiring, but considering the size and the segment where it is inserted, the value generally varies between U$150,000 and U$230,000.

2. What does a CIO do within a company?

Among the main activities of this director are the purchase and implementation of IT products, as well as taking care of all data processing and storage. Another important point is to guarantee the continuity of the company's internal communication networks.

3. What is the importance of the CIO?

Having a good CIO means that technology integration will be done in the best possible way, which will generate good results for the company and increase its total revenue.

4. What are the qualifications and skills of a CIO?

It is very important that he has some training in the area of management and business administration, that he knows how to anticipate the needs of his company as well as know how to put his client always in the first place in his strategic decisions and also a good relationship skill, because he will have to act in practically all segments of a company.

5. What is the difference between CEO and CIO?

The CIO is the executive responsible for the company's technology sector. The CEO, on the other hand, is the chief executive of the company and is often responsible for the company's business vision and its long-term direction. In general, the CEO is the most important executive within a company.

Conclusion

The digital transformation does not stop there. To ensure the technological progress of an organization, it is very important for the CIO to be aware of the main trends in the area and how they will influence the company’s results.

A clear example of this is the growing importance of data for a business strategy. With more and more information available, it is necessary for a company to have the means to collect, organize, analyze and monitor this data.

To do this, the CIO needs to provide the right Business Intelligence tools for the job, ensuring that this data is available for a company’s decision-making process — available and secure, after all, much of an organization’s value is now stored in your servers. Thus, the role of protecting this information from attacks and unauthorized access becomes essential for the company to operate smoothly.

And you, can you remember more CIO challenges that were left out of this article? Tell us in the comments below!

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