BUSINESS DRIVEN TECHNOLOGY

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BUSINESS DRIVEN TECHNOLOGY Chapter Five Orga
nizational Structures that Support Strategic
Initiatives
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LEARNING OUTCOMES

• 5.1 Compare the responsibilities of a chief
  information officer (CIO), chief technology
  officer (CTO), chief privacy officer (CPO), and
  chief security officer (CSO)
• 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

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CHAPTER FIVE 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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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)

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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

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IT ROLES AND RESPONSIBILITIES

• What concerns CIOs the most

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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

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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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FUNDAMENTAL SUPPORT STRUCTURES 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 fiascos along with 9/11 have shed
  new light on the meaning of ethics and security

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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

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Ethics

• Ethical issues stemming from Technology Advances

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Ethics

• One of the main ingredients in trust is privacy
• For e-business to work, companies, customers,
  partners, and suppliers must trust each other
  

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Security

• Organizational information is intellectual
  capital - it must be protected
  
• 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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Security

• Organizational spending on information security

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Security

• Computer Security Expenditures/Investment

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OPENING CASE STUDY QUESTIONSHow Levis Got Its
Jeans into Wal-Mart

• Predict what might have happened to Levis if its
  top executives had not supported investments in
  IT
  
• David Bergen compiled a cross-functional team of
  key managers. Analyze the relationships between
  Levis 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 Levis jeans sales information to another
  jeans manufacturer
  
• Evaluate the ramifications for Wal-Marts
  business if it failed to secure its partners
  information and all sales information for all
  products were accidentally posted to an anonymous
  Web site.

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CHAPTER FIVE CASECustomer's Customer
Relationship Management

• Organizations should implement effective
  solutions for not only their own organizations
  but also their customers organizations
  
• Ticketmaster wants to sell to its customers
  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
  Gardens lucrative concession sales

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CHAPTER FIVE CASE QUESTIONS

• Describe the dilemma an organization faces when
  attempting to access its customers customers
  
• Compare customer relationship management and
  customers customer relationship management
  
• Explain why directly accessing a customers
  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

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BUSINESS DRIVEN TECHNOLOGY UNIT ONE CLOSING
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Unit Closing Case OneMotivating and Rewarding
Employees

• Using Porters Five Forces determine if you would
  enter the EIM market. Provide support for your
  answer
  
• Explain why you think the EIM market is expected
  to grow so significantly over the next few years
  
• Describe how managers can change an
  organizations efficiency and effectiveness by
  being able to view incentive plans online
  
• Explain why EIM software can have a direct impact
  on an organization's bottom line

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Unit Closing Case OneMotivating and Rewarding
Employees

• Summarize how an EIM can impact a companys value
  chain
  
• Define ethics and explain why it is unethical for
  people to fail to report when they are overpaid
  for their sales efforts
  
• Explain why an organization would want to ensure
  that its incentive program information is highly
  secure

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Unit Closing Case TwoDelta Airlines Plays
Catch-Up

• What business risks would Delta be taking if it
  decided not to catch up with industry leaders in
  using IT to gain a competitive advantage?
  
• What competitive advantages can a company reap it
  if is the first-mover in introducing an
  innovative IT system? What are the pros and cons
  of being a fast follower?
• What other industries could potentially benefit
  from the use of yield management systems?
  
• Explain how American and United used customer
  information to gain a competitive advantage and
  how the competitive advantage affected their
  value chains

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Unit Closing Case TwoDelta Airlines Plays
Catch-Up

• Select two efficiency and effectiveness metrics
  that Delta can implement to measure the success
  of its gate and boarding application
  
• Deltas board of directors questioned the need to
  spend additional funds on IT when the airline was
  under great pressure to reduce its costs.
  Determine a strategy for how the CEO, CIO, CTO,
  and CPO can work together to ensure IT projects
  are supported by both the business and IT
  departments
• Explain how an airline can use information
  technology to ensure the security of its airplanes