Organizational employees must work closely together to
develop strategic initiatives that create competitive advantages.
Ø Ethics and security are two fundamental
building blocks that organizations must base their businesses upon.
INFORMATION TECHNOLOGY ROLES AND RESPONSIBILITIES
Ø Information technology is a relatively new
functional area, having only been around formally for around 40 years.
Ø Recent IT – related strategic positions:
-
Chief Information Officer (CIO)
-
Chief Technology Officer (CTO)
-
Chief Security Officer (CSO)
-
Chief Privacy Officer (CPO)
-
Chief Knowledge Officer (CKO)
Chief Information Officer (CIO)
Oversees all uses of IT and ensures the strategic
alignment of IT with business goals and objectives
Broad Chief Information Officer functions include;
Ø Manager – ensuring the delivery of all IT
projects, on time and within budget.
Ø Leader – ensuring the strategic vision of IT is
in line with the strategic vision of the organization.
Ø Communicator – building and maintaining strong
executive relationships.
Average CIO compensation by industry
|
Industry
|
Average CIO Compensation
|
Wholesale/Retail/Distribution
|
$ 243,304
|
Finance
|
$ 210,547
|
Insurance
|
$ 197,697
|
Manufacturing
|
$ 190,250
|
Medical/Dental/Health Care
|
$ 171,032
|
Government
|
$ 118,359
|
Education
|
$ 93,750
|
What concerns CIOs the most
|
%
|
CIOs Concerns
|
94
|
Enhancing customer satisfaction
|
92
|
Security
|
89
|
Technology evaluation
|
87
|
Budgeting
|
83
|
Staffing
|
66
|
ROI analysis
|
64
45
|
Building new applications
|
Outsourcing hosting
|
Chief Technology Officer (CTO)
Ø responsible for ensuring the throughput ,
speed, accuracy, availability and reliability of IT
Chief Security Officer (CSO)
Ø responsible for ensuring the security of IT
systems
Chief Privacy Officer (CPO)
Ø responsible for ensuring the ethical and legal
use of information
Chief Knowledge Officer (CKO)
Ø responsible for collecting, maintaining and
distributing the organization’s knowledge
THE GAP BETWEEN BUSINESS PERSONNEL AND IT PERSONNEL
Ø Business personnel possess expertise in
functional areas such as marketing, accounting and sales
Ø IT personnel have the technological
expertise
Ø This typically causes a communications gap
between the business personnel and IT personnel
IMPROVING COMMUNICATIONS
Ø Business personnel must seek to increase their
understanding of IT
Ø IT personnel must seek to increase their
understanding of the business
Ø It is the responsibility of the CIO to
ensure effective communication between business personnel and IT personnel
ORGANIZATIONAL FUNDAMENTALS – ETHICS AND SECURITY
Ø Ethics and security are two fundamental
building blocks that organizations must base their businesses on to be
successful
Ø In recent years, such event as the 9/11 have
shed new light on the meaning of ethics and security
ETHICS
Ø Ethics – the principles and standards that
guide our behavior toward other people
Ø Privacy is a major ethical issues;
o 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
Ø Issues affected by technology advances
Intelligent 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 lock like the real thing
and sold as such
|
Ø One of the main ingredients in trust is
privacy
Ø 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 – 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
|
PROTECTING INTELLECTUAL ASSETS
Ø Organizational information is intellectual
capital – it must be protected
Ø Information security – the protection of
information from accidental or intentional misuse by persons inside or outside
an organization
Ø E-business automatically crates tremendous
information security risks for organization
Percentage of IT Budget Spent on Information Security
Average Reported Computer Security
Expenditure/Investment per Employee