Bài giảng Business Driven Technology - Chapter 5 Organizational Structures that Support Strategic Initiatives

CHAPTER 5Organizational Structures that Support Strategic InitiativesLEARNING OUTCOMES5.1 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)5.2 Explain the gap between IT people and business people and the primary reason this gap exists5.3 Define the relationship between information security and ethicsORGANIZATIONAL STRUCTURESOrganizational employees must work closely together to develop strategic initiatives that create competitive advantagesEthics and security are two fundamental building blocks that organizations must base their businesses uponIT ROLES AND RESPONSIBILITIES Information technology is a relatively new functional area, having only been around formally for around 40 yearsRecent 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 RESPONSIBILITIESChief Information Officer (CIO) – oversees all uses of IT and ensures the strategic alignment of IT with business goals and objectivesBroad CIO functions include:Manager – ensuring the delivery of all IT projects, on time and within budgetLeader – ensuring the strategic vision of IT is in line with the strategic vision of the organizationCommunicator – building and maintaining strong executive relationshipsIT ROLES AND RESPONSIBILITIESAverage CIO compensation by industryIT ROLES AND RESPONSIBILITIESWhat concerns CIOs the mostIT ROLES AND RESPONSIBILITIESChief Technology Officer (CTO) – responsible for ensuring the throughput, speed, accuracy, availability, and reliability of ITChief Security Officer (CSO) – responsible for ensuring the security of IT systemsChief 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 knowledgeIT ROLES AND RESPONSIBILITIESSkills pivotal for success in executive IT rolesTHE 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 personnelImproving CommunicationsBusiness personnel must seek to increase their understanding of ITIT personnel must seek to increase their understanding of the businessIt is the responsibility of the CIO to ensure effective communication between business personnel and IT personnelORGANIZATIONAL FUNDAMENTALS – ETHICS AND SECURITYEthics 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 securityETHICSEthics – the principles and standards that guide our behavior toward other peoplePrivacy is a major ethical issuePrivacy – 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 consentETHICSIssues affected by technology advancesETHICSOne of the main ingredients in trust is privacyPrimary reasons privacy issues lost trust for ebusinessSECURITY - HOW MUCH WILL DOWNTIME COST YOUR BUSINESS? SECURITY - HOW MUCH WILL DOWNTIME COST YOUR BUSINESS? How Much Will Downtime Cost Your Business?Protecting Intellectual AssetsOrganizational 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 organizationEbusiness automatically creates tremendous information security risks for organizationsProtecting Intellectual AssetsProtecting Intellectual AssetsOPENING CASE STUDY QUESTIONSApple – Merging Technology, Business, and EntertainmentPredict what might have happened to Apple if its top executives had not supported investments in ITExplain why it would be unethical for Apple to allow its customers to download free music from iTunesEvaluate the effects on Apple’s business if it failed to secure its customer’s information and it was accidentally posted to an anonymous websiteExplain why Apple should have a CIO, CTO, CPO, CSO, and CKOCHAPTER FIVE CASEExecutive Dilemmas in the Information AgeThe vast array of business initiatives from SCM to ERP make it clear the IT is a business strategy and is quickly becoming a survival issueThis case explores several examples of executive IT issues resulting from ITCHAPTER FIVE CASE QUESTIONSExplain why understanding technology, especially in the areas of security and ethics, is important for a CEO. How do CEO’s actions affect the organizational culture?Identify why executives in nontechnological industries need to worry about technology and its potential business ramificationsDescribe why continuously learning about technology allows an executive to better analyze threats and opportunitiesIdentify three things that a CTO, CPO, or CSO could do to prevent the above issuesBUSINESS DRIVEN TECHNOLOGYUNIT ONE CLOSINGUNIT CLOSING CASE ONEMajor League Baseball – The Real Competitive AdvantagesUsing Porter’s Five Forces Model, analyze MLBAM’s buyer power and supplier power. What could MLBAM do to increase customer loyalty?Which of Porter’s three generic strategies is MLBAM following?How can MLBAM use efficiency IT metrics and effectiveness IT metrics to improve its business?UNIT CLOSING CASE ONE Major League Baseball – The Real Competitive AdvantagesPredict what might happen to MLBAM if it failed to secure its subscriber information and all personal information – including credit card numbers – was accidentally posted to an anonymous websiteHow could MLBAM use a customer relationship management system to improve revenue growth?UNIT CLOSING CASE TWOBusiness 2.0: Bad Business DecisionsExplain why understanding information technology and management information systems can help you achieve business success – or more importantly, help you avoid business disasters – regardless of your major