The COO as Chief Technology Officer: Why Operations Leaders Are Owning the Tech Agenda

A quiet but consequential shift is occurring in the C-suite of industrial companies: the chief operating officer is increasingly becoming the de facto chief technology officer, with primary responsibility for the technology strategies that drive competitive advantage. This evolution reflects a fundamental change in where technology creates value in manufacturing — less in back-office enterprise systems and more in the operational technologies that govern production, quality, supply chain, and customer delivery. A survey by Bain & Company found that in 67% of large manufacturing companies, the COO now has direct responsibility for technology budget decisions related to operational technology, up from 38% in 2020.

The shift is driven by the growing sophistication and strategic importance of operational technology stacks. Modern manufacturing operations are built on interlocking layers of technology — industrial IoT platforms, manufacturing execution systems, digital twins, predictive maintenance engines, robotic process automation, and AI-powered analytics — that collectively determine operational performance. These systems are fundamentally different from enterprise IT (email, ERP, CRM) in their technical requirements, risk profiles, and organizational impact. "Enterprise IT is about productivity and efficiency. Operational technology is about competitive advantage and survival," said Rajesh Nair, COO of Parker Hannifin. "The person closest to the operations should own the technology that drives them."

Several high-profile organizational restructurings illustrate the trend. In January 2026, Emerson Electric reorganized its technology leadership, placing its CTO under the COO rather than the CEO, and renaming the role "VP of Operations Technology." General Electric Aerospace followed suit in March, creating a unified "Operations and Technology" organization under COO Rahul Ghai. Textron, Illinois Tool Works, and Roper Technologies have made similar moves, consolidating operational technology leadership under their chief operating officers. In each case, the rationale is the same: to eliminate the organizational seam between operations management and operations technology.

The implications for CIOs and traditional IT leaders are significant. In companies where the COO has assumed ownership of operational technology, the CIO's role is increasingly focused on enterprise infrastructure, cybersecurity, and digital workplace tools — important but narrower than the expansive "digital transformation" mandates that CIOs have claimed over the past decade. Some CIOs have responded by building operational technology expertise within their teams, while others have embraced the narrower scope and deepened their focus on cybersecurity and infrastructure resilience. "The CIO role is not diminished — it is clarified," said Martha Heller, CEO of Heller Search Associates, an executive recruiting firm specializing in technology leadership. "The best CIOs are those who understand which technology domains belong to them and which belong to operations."

For aspiring industrial executives, the message is clear: technology fluency is no longer optional for operational leaders. COOs who lack the ability to evaluate, deploy, and manage advanced manufacturing technologies will find themselves at a significant disadvantage. Business schools are beginning to respond: MIT Sloan, the Wharton School, and INSEAD have all introduced specialized programs in operational technology leadership in the past two years. Executive education enrollment in these programs has grown 80% annually, reflecting demand from mid-career operations professionals who recognize that their next promotion may depend as much on their technology acumen as on their operational track record.