CHAPTER 5 : ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGICS 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:

1.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 CIOs the most

2.Chief Technology Officer (CTO)- responsible
for ensuring the throughput, speed, accuracy,
availability, and reliability of IT.

3.Chief Security Officer (CSO)- responsible for
ensuring the security of IT systems.

4.Chief Privacy Officer (CPO)- responsible for
ensuring the ethical and legal use of information.

5.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 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 - the principles and standards that guide our behavior toward other people.

↪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 of 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.

↪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.

 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.