Organizational Structures that Support Strategic Initiatives

Dr. Alisha D. Malloy MIS 200 Spring 2007 January 30, 2007

Learning Outcomes

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) 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 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)

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

IT Roles and Responsibilities

Average CIO compensation by industry

IT Roles and Responsibilities

What concerns CIOs the most

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 organizations knowledge

IT Roles and Responsibilities

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

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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

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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

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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

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Ethics

Issues affected by technology advances

Intellectual property
Copyright Fair use doctrine Pirated software Counterfeit software

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Ethics

One of the main ingredients in trust is privacy Primary reasons privacy issues lost trust for e-business

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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 creates tremendous information security risks for organizations

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Security

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Security

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Apple Merging Technology, Business, and Entertainment

1.
2.

Predict what might have happened to Apple if its top executives had not supported investments in IT
Explain why it would be unethical for Apple to allow its customers to download free music from iTunes

3.

Evaluate the effects on Apples business if it failed to secure its customers information and it was accidentally posted to an anonymous Web site
Explain why Apple should have a CIO, CTO, CPO, CSO, and CKO

4.

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Executive Dilemmas in the Information Age

The vast array of business initiatives from SCM to ERP make it clear the IT is a business strategy and is quickly becoming a survival issue This case explores several examples of executive IT issues resulting from IT

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Chapter Five Case Questions

1.

Explain why understanding technology, especially in the areas of security and ethics, is important for a CEO. How do CEOs actions affect the organizational culture? Identify why executives in nontechnological industries need to worry about technology and its potential business ramifications

2.

3.

Describe why continuously learning about technology allows an executive to better analyze threats and opportunities
Identify three things that a CTO, CPO, or CSO could do to prevent the above issues

4.

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BUSINESS DRIVEN TECHNOLOGY UNIT ONE CLOSING

How Levis Got its Jeans into Wal-Mart

1.

Explain how Levi Strauss & Co. achieved business success through the use of information, information technology, and people Using Porters Five Force Model analyze Levi Strausss buyer power and supplier power. Which of Porters Five Forces did Levi Strauss address through the implementation of its updated supply chain management system? Which of the three generic strategies is the company following?

2.

3.

4.

Evaluate how Levi Strauss can gain business intelligence through the implementation of a customer relationship management system
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How Levis Got its Jeans into Wal-Mart

5. 6.

How can Levi Strauss use efficiency IT metrics and effectiveness IT metrics to improve its business? David Bergen, Levi CIO, put together a cross-functional team of key managers from IT, finance, and sales to transform the companys systems to meet Wal-Marts requirements. Analyze the relationships between these three business areas and determine why Bergen chose them to be a part of his cross-functional team Predict what might happen to Wal-Marts business if it failed to secure its partners information and all sales information for all products was accidentally posted to an anonymous Web site

7.

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