Chapter 5 :
Organizational Structures that Support Strategic Initiatives
ORGANIZATIONAL STRUCTURES
• Organizational employees must work closely together to develop
strategic initiatives that create competitive advantages
• Ethics and security are two fundamental building blocks that
organizations must base their businesses upon
IT ROLES AND RESPONSIBILITIES
Information technology is a
relatively new functional area, having only been around formally for around 40
years
Recent IT-related strategic
positions:
•
Chief Information Officer (CIO)
•
Chief Technology Officer (CTO)
•
Chief Security Officer (CSO)
•
Chief Privacy Officer (CPO)
•
Chief Knowledge Office (CKO)
Chief
Information Officer (CIO)
The CIO typically reports directly
to the Chief Executive Officer (CEO). CIOs must possess a solid and detailed
understanding of every aspect of an organization coupled with tremendous
insight into the capability of IT. He also must have strong business skills and
strong IT skills. CIO oversees all uses of IT and ensures the strategic
alignment of IT with business goals and objectives. Broad CIO functions
include:
• Manager – ensuring the delivery of all IT projects, on time and
within budget
• Leader – ensuring the strategic vision of IT is in line with the
strategic vision of the organization
• Communicator – building and maintaining strong executive
relationships
Chief
Technology Officer (CTO)
CTO is responsible for ensuring the
throughput, speed, accuracy, availability, and reliability of IT. Simply put,
CTOs are similar to CIOs, except CIOs take on the additional responsibility for
effectiveness of ensuring that IT is aligned with the organization's strategic
initiatives.
Chief
Security Officer (CSO)
CSO is responsible for
ensuring the security of IT systems
Chief
Privacy Officer (CPO)
CPO is responsible for ensuring the
ethical and legal use of information. CPOs are the newest senior executive
position, and many CPOs are lawyers by training
Chief
Knowledge Office (CKO)
CKO is responsible for collecting,
maintaining, and distributing the organization’s knowledge
THE GAP BETWEEN BUSINESS PERSONNEL
AND IT PERSONNEL
• Business personnel possess expertise in functional areas such as
marketing, accounting, and sales
• IT personnel have the technological expertise
• This typically causes a communications gap between the business
personnel and IT personnel
• In order to improve
the communication gap, usiness personnel must seek to increase their understanding
of IT. While IT personnel must seek to increase their understanding of the
business.
• It is the responsibility of the CIO to ensure effective
communication between business personnel and IT personnel
ORGANIZATIONAL FUNDAMENTALS - ETHICS
AND SECURITY
• Ethics and security are two fundamental building blocks that
organizations must base their businesses on to be successful
• In recent years, such events as the Enron and Martha Stewart,
along with 9/11 have shed new light on the meaning of ethics and security
ETHICS
Ethics – the principles and standards that guide our behavior toward
other people
Privacy – the right to be left alone when you want to be, to have
control over your own personal possessions, and not to be observed without your
consent
• Privacy is a major ethical issue
Issues affected by technology
advances are :
• Intellectual property - Intangible creative work that is
embodied in physical form
• Copyright - The legal protection afforded an expression of an
idea, such as a song, video game, and some types of proprietary documents
• Fair use doctrine - In certain situations, it is legal to use
copyrighted material
• Pirated software - The unauthorized use, duplication,
distribution, or sale of copyrighted software
• Counterfeit software - Software that is manufactured to look
like the real thing and sold as such
SECURITY - HOW MUCH
WILL DOWNTIME COST YOUR BUSINESS?
Protecting Intellectual Assets
• Organizational information is intellectual capital - it must be
protected
• Information security – the
protection of information from accidental or intentional misuse by persons
inside or outside an organization
• Ebusiness automatically creates tremendous information security
risks for organizations
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