Meeting 7

Organizational Structures Which

Support Strategic Initiatives

Information System Management Course

Communication and Information Management Program
College of Multi Media Yogyakarta
Spring 2014/2015
Tri Anggraeni, S.Kom., M.Sc.

Reference :
Haag, Baltzan, Phillips (2005) Information System Management. Mc Graw Hill.
GCIO (2014) Modul 1. Ministry of Communication and Information Technology.

Contents

Compare the responsibilities of :

1. Chief information officer (CIO)
2. Chief technology officer (CTO)
3. Chief privacy officer (CPO)
4. Chief security officer (CSO)
Explain the gap between IT people and business people and
the primary reason this gap exists.
Define the relationship between security and ethics.

Intro

Employees across the organization

must work closely together to
develop strategic initiatives that
create competitive advantages.
To build cohesive enterprise-wide
team :
Understand the basic structure of a
typical IT department including
titles, roles, and responsibilities.

Information technology

Appeared around 1965.

Job titles, roles, and responsibilities often differ dramatically from
organization to organization.
IT positions tend to be placed in the strategic level of organization.
Most organizations positions
at the strategic level :
Chief executive officer (CEO)
Chief financial officer (CFO)
Chief operations officer
(COO)

More IT-related strategic positions :

Chief information officer (CIO)
Chief technology officer (CTO)
Chief security officer (CSO)
Chief privacy officer (CPO)

Critical to an organizations success.

Many organizations may not have a different individual for each of these
positions, but must still have leadership in place taking responsibility for all
these areas of concern.
Employees must seek the guidance and support of the individuals in these
roles who are responsible for enterprise-wide IT and IT-related issues.

1. Chief information officer (CIO)

Senior executive who :

1. Oversees all uses of IT
2. Ensures the strategic alignment of IT with business goals and
objectives

Often reports directly to CEO.

Must possess deep and detailed understanding of every aspect of
organization with tremendous insight into the capability of IT.
Broad functions of a CIO :
1. Manager : ensuring the delivery of all IT projects, on time and
within budget.
2. Leader : ensuring that the strategic vision of IT is in line with the
strategic vision of the organization.
3. Communicator : building and maintaining strong executive
relationships.

1. Chief information officer (CIO)

Posisi di lingkup IT tetapi harus dikaitkan dengan lingkuplingkup di luar IT.
The most
Harus paling dikhawatirkan oleh CIO :

The best CIO :

yang memiliki
pandangan bisnis
yang luas bahwa
kepuasan
customer lebih
krusial dan kritikal
daripada aspekaspek IT tertentu.

2. Chief technology officer (CTO)

Senior executive responsible for ensuring the throughput,

speed, accuracy, availability, and reliability of an organizations
information technology.
Similar to CIOs, except that CIOs take on additional
responsibility for effectiveness of ensuring that IT is aligned
with the organizations strategic initiatives.
Have direct responsibility for ensuring the efficiency of IT
systems throughout the organization.
Most CTOs possess good knowledge of all aspects of IT,
including hardware, software, and telecommunications.

3. Chief security officer (CSO)

Senior executive responsible specifically for ensuring the

security of IT systems and developing strategies and IT
safeguards against attacks from hackers and viruses.
The role has been elevated in recent years because of the
number of attacks from hackers and viruses.
Possess detailed knowledge of networks and
telecommunications as hackers and viruses usually find their
way into IT systems through networked computers.

4. Chief privacy officer (CPO)

Senior executive responsible for ensuring the ethical and legal use of
information within an organization.
The newest senior executive position in IT.

2001 :

150 of the Fortune 500

companies added CPO
position to their list of senior
executives
Thats why

Many CPOs are lawyers

by training, enabling
them to understand the
often complex legal
issues surrounding the
use of information.

GAP BETWEEN BUSINESS

PERSONNEL AND IT PERSONNEL

One of the greatest challenges today : Effective communication between

business personnel and IT personnel
Business personnel
Possess expertise in functional
areas such as marketing,
accounting, sales, and so forth.
Vocabularies based
on their experience
& expertise.

IT personnel
Have the technological
expertise.

Communication gap

Vocabularies :
acronyms & technical
terms

Effective communication : two-way street in which each side makes

effort to better understand the other (including written and oral
communication)

CIOs
responsibility :

1. Ensuring effective
communications between
business and IT personnel
2. Facilitate the gap between
organization strategy and IT

Employees
responsibility :

Maintaining the effective

communication between business
and IT sides of the organization

Enterprisewide level

Believed that : Accountability of organization is increasing when

CIO take responsibility to manage organization.

In change management
Organization cant
accept IT policy
formulated by CIO

Solution :

CIO must intent and

communicate that their work
create added-value for the
organization

(Later in your internship, try to get education background of every

structure in the company and check the impact to the organization)

CIO : IT Executive Leader

Can have 4 roles :

The main architect : planning the future design of business.

Change leader : managing resources to achieve optimal
implementation in the future.
Product developer : determining company positioning in
digital era.
Technology provoking : including IT in business strategy.
Trainer/educator (for the system implemented)

Business personnel

Must seek to achieve an increased

level of understanding of IT.
Do not need to know every
technical detail.
Important to business personnels
careers to understand what they
can and cannot accomplish using IT.
Can read numerous businessoriented IT magazines such as
InformationWeek and CIO to
increase IT knowledge. (Indonesia :
Biskom, Majalah ICT, InfoKomputer)

Effective communication

Organization must develop strategies for integrating its IT personnel

into various business functions and never be left out of strategy
meetings.
IT personnel must understand the business to determine which
technologies can benefit (or hurt) the business.
Example : With a little effort to communicate, by providing
information on the functionality available in CRM systems, IT
personnel might greatly enhance a meeting about how to improve
customer service.
Working together, business and IT personnel have the potential to
create customer-service competitive advantages.

Case study

What might have happened to Levis if its top executives had

not supported investments in IT?
Can be left behind, remain uncompetitive.

David Bergen, Levis CIO, put together a cross-functional team

of key managers from IT, finance, and sales to transform Levis
systems to meet Wal-Marts requirements.
Analyze the relationships between these three business areas
and determine why Bergen chose them to be a part of his
cross-functional team.

IT

Finance

Sales

Relationships??

Considering finance to use IT to increase sales

Nice homework @lovely hometown

Find the biggest company/factory in your hometown.

1. Do they have any CRM/SCM system to inform the inventory & orders?
If they have : Describe the system.
If they dont have : How do they deal with the inventory & orders?
Minimum 3 slides , font size : 22/24, ppt style/diagram.
2. Find whether they have market abroad.
If they have : Mention the countries and sales/revenue achievement
If they dont have : 1) Explore whether they have plan to do it.
2) What are the obstacles that they face and what their hopes?
Minimum 2 slides , font size : 22/24, ppt style/diagram.

Methods: internet/interview (take a photo)

Dont hesitate to contact me if you confused (0815-13124864/tri.anggraeni@gmail.com)