MGT 300 - Chapter 5

CHAPTER 5 - Organizational Structures that Support Strategic Initiative



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-related strategic positions:
    ~ 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

  •                                                 Average CIO compensation by industry


                                                         What concern CIOs the most

    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 system

    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


                                               Skill 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
     
        ETHICS

    ~ Principles and standards that guide our behavior toward other people
    ~ Privacy is a major ethical issue.
    • Privacy - 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 - 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
    ~ 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 creates tremendous information security risks for organizations


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