BUSINESS DRIVEN
TECHNOLOGY
Chapter Five:
Organizational Structures that
Support Strategic Initiatives
5-1
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
5-3
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)
5-4
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
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IT ROLES AND RESPONSIBILITIES
• What concerns CIOs the most
5-6
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
5-7
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
5-8
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
5-9
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
5-10
Ethics
• Ethical issues stemming from Technology
Advances
5-11
Ethics
• One of the main ingredients in trust is privacy
• For e-business to work, companies, customers,
partners, and suppliers must trust each other
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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
5-13
Security
• Organizational spending on information security
5-14