Organizational Structures that Support Strategic Initiatives Chapter 5 Organizational Structures that Support Strategic Initiatives

Learning Outcomes Compare the responsibilities of a chief information officer (CIO), chief technology officer (CTO), chief privacy officer (CPO), and chief security officer (CSO) Explain the gap between IT people and business people and the primary reason this gap exists Define the relationship between information security and ethics Explain customer metrics and their importance to an organization

Overview 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

Chief Information Officer (CIO) 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

What concerns CIOs the most 94% Enhancing customer satisfaction 92% Security 89% Technology evaluation 87% Budgeting 83% Staffing 66% ROI analysis 64% Building new applications

IT Roles and Responsibilities - CTO, CSO, CPO 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

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

Ethics Ethics – the principles and standards that guide our behavior toward other people Ethics Issues 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

Ethics For e-business to work, companies, customers, partners, and suppliers must trust each other

Security Information security – is 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

How Levi’s Got Its Jeans into Wal-Mart Predict what might have happened to Levi’s if its top executives had not supported investments in IT David Bergen compiled a cross-functional team of key managers. Analyze the relationships between Levi’s three business areas and determine why Bergen chose them to be a part of his cross-functional team Explain why it would be unethical for Wal-Mart to sell Levi’s jeans sales information to another jeans manufacturer Evaluate the ramifications for Wal-Mart’s business if it failed to secure its partner’s information and all sales information for all products were accidentally posted to an anonymous Web site

Case: CRM Organizations should implement effective solutions for not only their own organizations but also their customers’ organizations Ticketmaster wants to sell to its customer’s customer Ticketmaster wants to sell the tickets to a Knicks game at Madison Square Garden and book dinner at a restaurant near the Garden This could take revenue away from Madison Square Garden’s lucrative concession sales

Case Questions Describe the dilemma an organization faces when attempting to access its customer’s customers Compare customer relationship management and customer’s customer relationship management Explain why directly accessing a customer’s customer is considered unethical Assess the adverse impact to Ticketmaster if it failed to ensure the security of its customer information such as credit card numbers