Chapter 5

Organizational Structures that Support Strategic Initiatives

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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

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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

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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

87% Budgeting

64% Building new applications

89% Technology evaluation

92% Security

94% Enhancing customer satisfaction

83% Staffing

66% ROI analysis

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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

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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

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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

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Ethics

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

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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

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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

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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

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Case Questions

1. Describe the dilemma an organization faces when attempting to access its customer’s customers

2. Compare customer relationship management and customer’s customer relationship management

3. Explain why directly accessing a customer’s customer is considered unethical

4. Assess the adverse impact to Ticketmaster if it failed to ensure the security of its customer information such as credit card numbers