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.
INFORMATION TECHNOLOGY 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 PRSONNEL
- 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 event as the 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 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 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 – 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
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