MGT300 Chapter 5

Chapter 5 Organizational  Structures that Support Strategic Initiatives

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) ~ 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 concerns CIOs the most

   ❤ Chief Technology Officer (CTO) ~ responsible for ensuring the throughput, speed, accurancy, 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

Skills pivotal for success in executive IT roles

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 behaviour 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

THE END OF CHAPTER 5 💚