5-1

BUSINESS DRIVEN TECHNOLOGY

Chapter Five: Organizational Structures that Support Strategic Initiatives

5-3

CHAPTER FIVE OVERVIEW

• 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

5-4

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)

5-5

IT ROLES AND RESPONSIBILITIES

• 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

5-6

IT ROLES AND RESPONSIBILITIES

• What concerns CIOs the most

5-7

IT ROLES AND RESPONSIBILITIES

• 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

5-8

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

5-9

FUNDAMENTAL SUPPORT STRUCTURES – 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 fiascos along with 9/11 have shed new light on the meaning of ethics and security

5-10

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

5-11

Ethics

• Ethical issues stemming from Technology Advances

5-12

Ethics

• One of the main ingredients in trust is privacy

• For e-business to work, companies, customers, partners, and suppliers must trust each other

5-13

Security

• Organizational information is intellectual capital - it must be protected

• Information security – is 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

5-14

Security

• Organizational spending on information security