Chapter 5: Organizational Structures that Support Strategic Initiatives

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Organizational Structure:

  • Organizational employees must work closely together to develop strategies 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) - responsible for overseeing all uses of information technology and ensuring the strategic alignment of IT with business goals and objectives
    • Manager - ensure the delivery of all IT projects on time and within the budget
    • Leader - ensure the strategic vision of IT is in line with the strategic vision of the organization
    • Communicator - advocate and communication that IT strategy by building and maintaining strong executive relationships
  • Chief Technology Officer (CTO) - ensuring the throughout,speed, accuracy, availability,and reliability of an organization's information technology
  • Chief Security Officer (CSO) - ensuring the securities of IT systems and developing strategies and IT safeguards against attacks from hackers and viruses
  • Chief Privacy Officer (CPO) - ensuring the ethical and legal use of information within an organization
  • Chief Knowledge Officer (CKO) - responsible to collect, maintain and distribute the organization's knowledge



THE GAP BETWEEN BUSINESS PERSONNEL AND IT PRSONNEL
  •  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 event as the 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 issues;
  • Privacy – the right to be left alone when you want to be to have control ever your own personnel possessions and not to be observed without your consent
  • Issues affected by technology advances:
  •  One of the main ingredients in trust is privacy
  • Primary reasons privacy issues lost trust for e-business
1.
Loss of personnel privacy is a top concern for Americans in the 21st century
2.
Among Internet users, 37 percent would be “a lot” more inclined to purchase a product on a websites that had a privacy policy
3.
Privacy/security is the number one factors that would convert Internet researchers into Internet buyers


SECURITY
PROTECTING INTELLECTUAL ASSETS
  • 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 crates tremendous information security risks for organization

HOW MUCH WILL DOWNTIME COST YOUR BUSINESS??

Sources of Unplanned Downtime
Bomb threat
Hacker
Snowstorm
Burst pipe
Hail
Sprinkler malfunction
Chemical spill
Hurricane
Static electricity
Construction
Ice storm
Strike
Corrupted data
Insects
Terrorism
Earthquake
Lightning
Theft
Electrical short
Network failure
Tornado
Epidemic
Plane crash
Train derailment
Equipment failure
Frozen pipe
Smoke damage
Evacuation
Power outage
Vandalism
Explosion
Power surge
Vehicle crash
Fire
Rodents
Virus
Flood
Sabotage
Water damage (various)
Fraud
Shredded data
Wind



How much will down time cost your business??
FINANCIAL PERFORMANCE
•          REVENUE RECOGNITION
•          CASH FLOW
•          PAYMENT GUARANTEE
•          CREDIT RATING
•          STOCK PRICE

REVENUE
•          DIRECT LOSS
•          COMPENSANTORY PAYMENTS
•          LOST FUTURE REVENUE
•          INVESTMENT LOSES
•          LOST PRODUCTIVITY

DAMAGED REPUTATIONS
•          CUSTOMERS
•          SUPPLIERS
•          FINANCIAL MARKETS
•          BANKS
•          BUSINESS PATNERS

OTHER EXPENSES
•          TEMPORARY EMPLOYEES
•          EQUIPMENT RENTALS
•          OVERTIME COSTS
•          EXTRA SHIPPING CHARGES
•          TRAVEL EXPENSES
•          LEGAL OBLIGATIONS



The End of Chapter 5: Organizational Structures that Support Strategic Initiatives by syahirahzfri. 
Thank you for reading :)


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