CHAPTER 5

    CHAPTER 5 - Organizational Structure 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 business 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)
2. Chief Technology Officer (CTO)
3. Chief Security Officer (CSO)
4. Chief Privacy Officer (CPO)
5. Chief Knowledge Officer (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 strategic vision of the organization
• Communicator - building and maintaining strong executive relationships

 Average CIO compensation by industry

Industry	Average CIO Compensation
Wholesale/Retail/Distribution	$ 243,304
Finance	$ 210,547
Insurance	$ 197,697
Manufacturing	$ 190,250
Medical/Dental/Health Care	$ 171,032
Government	$ 118,359
Education	$   93,750

·         What concerns CIOs the most

Percentages %	CIOs Concerns
94	Enhancing customer satisfaction
92	Security
89	Technology evaluation
87	Budgeting
83	Staffing
66	ROI analysis
64	Building new applications
45	Outsourcing hosting

• 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

Skill 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 technologial 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 business on to be successful
• In recent years, such events are 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 effected by technology advances 

1. Intellectual property 
2. Copyright
3. Fair use doctrine
4. Pirated software
5. Counterfeit software

• 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 
• 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 

1.	Loss of personnel privacy is a top concern for Americans in the 21st century
2.	Among Internet users, 37 percent would be “a lot” more inclined to purchase a product on a websites that had a privacy policy
3.	Privacy/security is the number one factors that would convert Internet researchers into Internet buyers

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

                                                         

                                                                -THANK YOU-