Chapter 5 : Organizational Structures That Support Strategic Initiatives

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 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 the 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

o     Chief Technology Officer (CTO) – responsible for ensuring the throughput , speed, accuracy, availability and reliability of IT
o    Chief Security Officer (CSO) – responsible for ensuring the security of IT systems
o   Chief Privacy Officer (CPO) – responsible for ensuring the ethical and legal use of information

o   Chief Knowledge Officer (CKO) – responsible for collecting, maintaining and distributing the organization’s knowledge


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
  1. Ethics - the principles and standards that guide our behaviour toward other people
  2. Privacy - 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



  • ETHICS 
    • Ethics – the principles and standards that guide our behavior toward other people
    • Privacy is a major ethical issues;
    • Privacy – the right to be left alone when you want to be to have control ever your own personnel possessions and not to be observed without your consent
    • Issues affected by technology advances

    Intelligent 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 lock 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 21stcentury
    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 – HOW MUCH WILL DOWNTIME COST YOUR BUSINESS??

    Sources of Unplanned Downtime
    Bomb threat
    Hacker
    Snowstorm
    Burst pipe
    Hail
    Sprinkler malfunction
    Chemical spill
    Hurricane
    Static electricity
    Construction
    Ice storm
    Strike
    Corrupted data
    Insects
    Terrorism
    Earthquake
    Lightning
    Theft
    Electrical short
    Network failure
    Tornado
    Epidemic
    Plane crash
    Train derailment
    Equipment failure
    Frozen pipe
    Smoke damage
    Evacuation
    Power outage
    Vandalism
    Explosion
    Power surge
    Vehicle crash
    Fire
    Rodents
    Virus
    Flood
    Sabotage
    Water damage (various)
    Fraud
    Shredded data
    Wind


    ·         How much will downtime cost your business??


    PROTECTING INTELLECTUAL ASSETS
    ·         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 crates tremendous information security risks for organization

    Percentage of IT Budget Spent on Information Security


    Average Reported Computer Security 
    Expenditure/Investment per Employee 

    ected by technology advances
  • Although natural disasters may appear to be the most devastating causes of IT outages, they are hardly the most frequent or biggest threats uptime
  • Sources of unplanned downtime

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