CHAPTER 5 : ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES

 ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES

Learning outcomes

1- Compare the responsibilities of a chief information officer (CIO), chief technology officer 

(CTO), chief privacy officer (CPO), chief security officer (CSO), and chief knowledge office 

(CKO).

2- Explain the gap between IT people and business people and the primary reason this gap 

exists.

3- Define the relationship between information security and ethics.

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) – 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 :

- 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 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 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 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.

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.