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 2 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) - 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

• Average CIO compensation by industry

• What concerns CIO's the most

• Chief Technology Officer (CTO) - Responsible for ensuring the throughput, speed, accuracy,                                                             availability, and reliability of IT
• Chief Security Officer (CSO) - Responsible for ensuring the security of IT systems 
• Chief Privacy Officer (CPO) - Responsible for ensuring the ethical and legal use of                                                                      information
• Chief Knowledge Office (CKO) - Responsible for collecting, maintaining, and distributing                                                               the organization's knowledge

• Skills pivotal for success in executive IT roles

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

IMPROVING COMMUNICATIONS

• Business personnel must seek to increase their understanding of IT
• 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 & SECURITY

• Ethics and security are 2 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 is a major ethical issue

             - 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

• Issues affected by technology advances

             * 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 or copyrighted                                                    software

             * Counterfeit software - Software that is manufactured to look like the real thing and sold                                                           as such

• One of the main ingredients in trust is privacy
• Primary reasons privacy issues lost trust for e-business

SECURITY

• 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
• E-Business automatically creates tremendous information security risks for organizations