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 missioncritical 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