CHAPTER 5 Organizational Structure that Support Strategic Initiatives

1. Learning Outcomes

1.1   Compare the responsibilities of a chief information officer (CIO), chief technology officer (CTO), chief privacy officer (CPO), chief security officer (CSO), and chief knowledge officer (CKO).

1.2   Explain the gap between IT people and business people and the primary reason this gap exists.

1.3   Define the relationship between security and ethics.

Organizational Structures

>  Organizational employees must work closely together to develop strategic initiative that create competitive advantages

>  Ethics and security are two fundamental building blocks that organizations must base their businesses upon

2. IT Roles and Responsibilities

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

2.2  Recent IT-related strategic positions

• Chief Information Officer (CIO)
• Chief Technology Officer (CTO)
• Chief Security Officer (CSO)
• Chief Knowledge Officer (CKO)
• Chief Privacy Officer (CPO)

2.3  Chief Information Officer (CIO) - oversees all uses of IT ensures the strategic allgnment of IT with business goals and objectives

>  Lead and communication

>  Same like Head Of Department (HOD)

2.3.1  Broad CIO function included :

• Manager -ensuring the delivery of all project, on time and within budget ( manage the project)
• Leader - ensuring the strategy vision of IT is in line with the strategy vision of the organization (lead the vision and mission)
• Communicator - building and maintaining strong executive relationships (exp: tell new policy )

2.3.2  Average CIO compensation by industry 

2.3.3  What concerns CIOs The most 

2.4  Chief Technology Officer (CTO) - responsible for ensuring the throughput speed, accuracy, availability and reliability of IT

>  they need to access 

> they need to develop 

2.5  Chief Security Officer (CSO) - Responsible for ensuring the security of IT systems

> fight for hackers and virus

> to be smoothie 

2.6  Chief Privacy Officer (CPO) - responsible for ensuring the ethical and legal use of information 

> legal and ethical issues

> lawyer, the people how know about ethical and privacy

2.7  Chief Knowledge Officer (CKO) - responsible for collecting, maintaining and distributing the organization's knowledge 

> exp: UITM have a own website library to find the journal or book

Skills pivotal for success in executive IT roles

3. The Gap Between Business Personnel and IT Personnel

>   Business personnel possess expertise in functional area such as marketing, accounting and sales

>   IT personnel have the technological expertise

>   The typically couses a communications gap between the business personnel and IT personnel

3.2 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

4. 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

4.1  Ethics

>  The principles and standards that guide our behavior toward other people

    ( Privacy and Security CPO,CSO )

>   Privacy is a major ethical issue

   - Privacy - The right to be left alone when you when to be, to have control over your own personal possessions and not be observed without your content

>   Issues affected by technology advances 

• Intellectual property - Intangible creative work
• Copyright - The legal protection afforded an expression of an idea such as a song, video game and some types of proprietary document
• Fair use doctrine - It is legal to use copyright material
• Pirated software - The unauthorized use, duplication, distribution or sale of copyright software
• Counterfeit software - Software that is manufactured to look like the thing and sold as such

4.2  Security

• Organizational information is intellectual capital - it must be protected (asset organization)

• 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