MANAGEMENT

INFORMATION

SYSTEMS

Chapter 5: Organizational Structures That Support Strategic Initiatives + BP6 + BP7

Learning Outcomes

Define the primary IT roles along with their associated responsibilities.

Explain the gap between IT and business professionals.

Explain why ethics and security are fundamental building blocks of business today.

IT-Related Strategic Positions

Title Responsibilities

Chief Information Officer (CIO) Oversees all uses of IT and ensures the

strategic alignment of IT with business goals

and objectives

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 organizations knowledge

Reorganizing an Organization

The AAA Management Company specializes in the management of

rental properties and generates over $20 million in revenues each year

and has over 2,000 employees throughout the United States, Canada,

and Mexico. The company has just hired a new CEO, David Paul. David

is planning to reorganize the company so that it operates more

efficiently and effectively. Below is the new organizational structure that

he plans to present to the board of directors on Monday.

1. Explain the advantages and disadvantages of such a reporting

structure.

2. Reorganize the reporting structure in the way you feel will be most

beneficial to the operations of the company, being sure to give your

justifications for the new structure.

IT-Related Strategic Positions

http://www.onetonline.org/

Business vs. 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

Stay Informed

Ethics and Privacy

Ethics = The principles and standards that guide our

behavior toward other people

Intellectual Property

Copyright

Fair Use Doctrine

Pirated Software

Counterfeit Software

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

Security Downtime Costs

How many transactions can the company afford to lose without significantly impacting business?

Does the company depend upon one or more mission-critical applications to conduct business?

How much revenue will the company lose for every hour a critical application is unavailable?

What is the productivity cost associated with each hour of downtime?

How will collaborative business processes with partners, suppliers, and customers be affected by an unexpected IT outage?

What is the total cost of lost productivity and lost revenue during unplanned downtime?

Security Downtime Costs

Security Downtime Sources

Security Treats

For customers

From individuals - employees

From individuals - outsiders

From non-humans

How could you prevent them?

Security Spam

Security Phishing

Security Spyware

Software that aids in gathering information about a

person/organization without their knowledge

May send such information to another entity without the

person's consent, or that asserts control over a computer

without the person's knowledge

4 types: system monitors, Trojans, adware, and tracking

cookies

Security Virus

Security Worm

Security Firewall

Protecting Intellectual Assets

Organizational information is intellectual capital and 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

Most information security breaches result from people misusing an organizations information either intentionally or inadvertently

Strong Passwords

Passwords that you can remember

Keep passwords a secret

Manage passwords

Monitor accounts

Come up with a passphrase

Passphrase = sentence that you can remember

My favorite group is Cold Play and my favorite song is Arches

Use the first letter of each word of the sentence

Mfgicpamfsia

Use a combination of upper and lowercase letters,

numbers, and special characters that look like letters

MfGicp&mfsi@

Review Credit Report

Free Credit Reports

Identity Theft

Identity Theft