CHAPTER 5: Organizational Structures that Support Strategic Initiatives

• Organizational employees must work closely together to develop strategic initiatives that create competitive advantages
• Ethics and security are two dundamental biulding blocks that organizations must base their business 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)

1. . Chief Information Officer (CIO) 

• Overseas 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 strategic vision of the organization

          - Communicator -building and maintaining strong executive relationships.

DEFINITIONS

• Chief Technology Officer (CTO) - responsive for ensuring the throughput, speed, accurancy, availibilty, and relibility 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 posses 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 dundamental building blocks that organizations must base their businesses on to be succesfull
• In recent years, such events as the ENvironmet and Martha Stewart, along with 9/11 have shed new light on the meaning of ethics and security.

ETHICS

• The principles and standards that duide our behavior toward other poeple
• Privacy is a major ethical issue - the right to be left 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

1.  Intellectual property - Intangible creative work that is embodied in physical form
2. Copyright - The legal protection afforded an expression of an idea, such as a song, video game, and some types of prpriety documents
3. Fair use doctrine - In certain  situations, it is legal to use copyrighted material
4. Pirated software - The unauthorized use, duplication, distribution, or sale of copyrighted software.
5. Counterfeit software - Software that is manufactured to look like the real thing and sold as such.

• One of the main ingridients 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 fromaccidental or intentional missue by persons inside or outside an organization
• E-business automatically creeates tremendous information security risks for organizations.