CHAPTER 5

ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES

In this chapter, we learned about :

• Compare the responsibilities of a chief information officer (CIO), chief technology officer (CTO), chief privacy officer (CPO), chief security officer (CSO), and chief knowledge officer (CKO)
• Explain the gap between IT people and business people and the primary reason this gap exists
• Define the relationship between information security and ethics

Organizational Structure

* 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


IT Roles and Responsibilities

* Information technology is a relatively new functional area, having only been around formally for around 40 years

* Recent IT-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 strategic alignment of IT with business goals and objectives

* Broad CIO functions include :

- Manager ~ ensuring the delivery of all IT project, 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

* What concerns CIOs the most

* Chief Technology Officer (CIO) - 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 - responsible for ensuring the ethical and legal use of information

* Chief Knowledge Officer - responsible for collecting, maintaining, and distributing the organization's knowledge

* Skills pivotal for success in executive IT roles

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

* 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 Enron and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security

Ethics

* Ethics - the principles and standards that guide our behaviour 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

* Issues affected by technologies advances

- Intellectual 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 proprietary documents
- Fair use doctrine ~ in certain situations, it is legal to use copyrighted material
- Pirated software ~ the unauthorized use, duplication, or sale of copyrighted software
-  Counterfeit software ~ software that is manufactured to look 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

Security

* 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 create tremendous information security risks for oganizations