Chapter 5
Organizational Structures that
Support Strategic Initiatives
Learning Outcomes
 Compare the responsibilities of a chief
information officer (CIO), chief technology officer
(CTO), chief privacy officer (CPO), and chief
security officer (CSO)
 Explain the gap between IT people and business
people and the primary reason this gap exists
 Define the relationship between information
security and ethics
 Explain customer metrics and their importance to
an organization
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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
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Chief Information Officer (CIO)
 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
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What concerns CIOs the most
94% Enhancing customer satisfaction
92% Security
89% Technology evaluation
87% Budgeting
83% Staffing
66% ROI analysis
64% Building new applications
IT Roles and Responsibilities CTO, CSO, CPO
 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
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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
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Ethics
 Ethics – the principles and standards that guide our
behavior toward other people
 Ethics Issues

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
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Ethics
 For e-business to work, companies,
customers, partners, and suppliers must trust
each other
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Security
 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
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How Levi’s Got Its Jeans into Wal-Mart
 Predict what might have happened to Levi’s if its top
executives had not supported investments in IT
 David Bergen compiled a cross-functional team of
key managers. Analyze the relationships between
Levi’s three business areas and determine why
Bergen chose them to be a part of his crossfunctional team
 Explain why it would be unethical for Wal-Mart to sell
Levi’s jeans sales information to another jeans
manufacturer
 Evaluate the ramifications for Wal-Mart’s business if it
failed to secure its partner’s information and all sales
information for all products were accidentally posted
to an anonymous Web site
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Case: CRM
 Organizations should implement effective
solutions for not only their own organizations
but also their customers’ organizations
 Ticketmaster wants to sell to its customer’s
customer
 Ticketmaster wants to sell the tickets to a
Knicks game at Madison Square Garden and
book dinner at a restaurant near the Garden
 This could take revenue away from Madison
Square Garden’s lucrative concession sales
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Case Questions
Describe the dilemma an organization faces when
attempting to access its customer’s customers
2. Compare customer relationship management and
customer’s customer relationship management
3. Explain why directly accessing a customer’s
customer is considered unethical
4. Assess the adverse impact to Ticketmaster if it
failed to ensure the security of its customer
information such as credit card numbers
1.
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