Friday, January 31, 2014

CHAPTER FIVE - ORGANIZATIONAL STRUCTURES THAT SUPPORT STRATEGIC INITIATIVES


Organizational Structures
Employees across the organization must work closely together to develop strategic initiatives that create competitive advantages.

IT Roles and Responsibilities
Most organizations maintain position such as chief executive officer(CEO), chief financial officer(CFO), and chief operation officer(COO) at the strategic level. Recently, there are more IT- related strategic position such as chief information officer(CIO), chief technology officer(CTO), chief security officer(CSO), chief privacy officer(CPO) and chief knowledge officer(CKO).

The chief information officer(CIO) is responsible for :
-          Overseeing all users of information technology.

-          Ensuring the strategic alignment of IT with business goals and objectives.

 
What Concern CIOs the Most?

The chief technology officer(CTO) is responsible for :
-          Ensuring the throughput, speed, accuracy, availability and reliability of an organization’s information technology.
-          Ensuring the efficiency of IT system throughout the organization.

The chief security officer(CSO) responsible for :
-          Ensuring the security of IT system.
-          Developing strategies.
-          IT safeguards against attacks from hackers and viruses.

The chief privacy officer(CPO) responsible for :      
-          Ensuring the ethical and legal use of information within organizations.
-          Enable them to understand the often complex legal issues.

The chief knowledge officer(CKO) responsible for :
-          Collecting, maintaining, and distributing the organization’s knowledge.
-          Make it easy for people to reuse the knowledge.

 
Skills Pivotal for Success in Executive  IT Roles

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.

IMPROVING COMMUNICATION
Business personnel must seek to increase their understanding of IT.
IT personnel must seek to increase their understanding of the business.
It is the responsibility of the CIO to ensure effective communication between business personnel and IT personnel.

Organization Fundamentals – Ethics and Security
Ethics – the principles and standards that guide our behavior toward other people.
Privacy is a major ethical issue. Privacy is 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.

Issues Affected by Technology Advances 

Primary Reasons Privacy Issues Reduce Trust or Business 


Security – How Much Will Downtime Cost Your Business?

PROTECTING INTELLECTUAL ASSETS
Organizational information is intellectual capital and it must be protected.

Information security – the protection of information from accidental or intentional misuse by persons inside or outside an organization.
Ebusiness automatically creates tremendous information security risks for organizations.

Sources of Unplanned Downtime

The Cost of Downtime

Monday, January 13, 2014

CHAPTER FOUR - MEASURING THE SUCCESS OF STRATEGIC INITIATIVES




Measuring Information Technology’s  Success

It has become an important part of organizations’ strategy, competitive advantage, and profitability.

Key Performance Indicators (KPIs) are the measure that are tied to business drivers. Metrics are the detailed measures that feed those KPIs.


Efficiency And Effectiveness
Efficiency IT metrics measure the performance of the IT system itself including throughput, speed, and availability.
Effectiveness IT metrics measure the impact IT has on business process and activities including customer satisfaction, conversation rates, and self-through increase.



Benchmarking – Baseline Metrics
Benchmarking is a process of continuously measuring system results, comparing those results to optimal system performance (benchmark values), and identifying steps and procedures to improve system performance.

 
 Comparing efficiency IT and effectiveness IT metrics of Egovernment initiatives.


The Interrelationships Of Efficiency And Effectiveness IT Metrics
Efficiency IT metrics focus on the technology itself. It’s important to monitor and do not always guaranteed effectiveness.
Effectiveness IT metrics are determined according to an organization’s  goals, strategies, and objectives.
Need to consider the issue of security while determining efficiency and effectiveness IT metrics.
When an organization offers customers the ability to purchase products over the internet it must implement the appropriate security.



Metrics For Strategic Initiatives
A metric is nothing more than a standard measure to assess performance in particular area. A focus on customer and performance standard shows up in the form of metrics that assess the ability to meet customer’s needs and business objectives.

Website Metrics
-          A company can use web traffic analysis to determine the revenue generated, the number of new customers acquired, any reductions in customer service call and so on.
A few metrics manager should be familiar with to help measure website access along with organization’s strategic initiatives are :
-          Abandoned Registrations
-          Abandoned Shopping Carts
-          Click-through
-          Conversation Rate
-          Cost-Per-Thousand(CPM)
-          Page exposure
-          Total Hits
-          Unique Visitors   

Supply Chain Management (CRM) Metrics
-          Help an organization understand how it’s operating over a given period.
Common supply chain management metrics:
1.       Back order
2.       Customer order promised cycle time
3.       Customer order actual cycle time
4.       Inventory replenishment cycle time
5.       Inventory turns

Customer Relationship Management (CRM) Metrics
-          Best practice is no more than seven (plus or minus two) metrics out of hundreds possible should be used at any given management level.

Business Process Reengineering (BPR) and Enterprise Resource Planning (ERP) Metrics
-          BPR and ERP are large, organization wide initiatiaves.
-          It is extremely difficult to measure
-          One of the best method is scorecard    

Balance Scorecard
-          A management system, in addition to a measurement system that enables organizations to clarify their vision strategy an translate them into an action.