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) 

 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

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

IMPROVING COMMUNICATION

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

ETHICS AND SECURITY

Ethics and security are two fundamental building blocks that organizations must base their businesses on to be successful

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

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

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