Wednesday, 29 July 2015

Chapter 5 - Organizational Structures that Support Strategic Initiatives

Learning Outcomes

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

5.3  Define the relationship between information security and ethics

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
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)
§Chief Knowledge Office (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 

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

Chief Knowledge Office (CKO) - responsible for collecting, maintaining, and distributing the organization’s knowledge

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


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

•Issues affected by technology advances
•Intellectual property
•Fair use doctrine
•Pirated software
•Counterfeit software

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 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 look like the real thing and sold as such

•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 creates tremendous information security risks for organizations

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