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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

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

10. 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

11. 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

12. 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

13. 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