MGT 300

IT in BUSINESS

PN. INTAN LIANA SUHAIME

 Chapter 5
Organizational Structures that
Support Strategic Initiatives
 Learning Outcomes

5.1 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 exists

5.3 Define the relationship between information

security and ethics
 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)
 Chief Technology Officer (CTO)
 Chief Security Officer (CSO)
 Chief Privacy Officer (CPO)
 Chief Knowledge Office (CKO)
 IT Roles and Responsibilities

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
 IT Roles and Responsibilities

Average CIO compensation by industry

 IT Roles and Responsibilities

What concerns CIOs the most

 IT Roles and Responsibilities

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

Chief Knowledge Office (CKO) - responsible for

collecting, maintaining, and distributing the
organization’s knowledge
 IT Roles and Responsibilities

Skills 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

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

Privacy is a major ethical issue

 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
Issues affected by technology advances
 Intellectual property
 Copyright
 Fair use doctrine
 Pirated software
 Counterfeit software
 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
 Ethics

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