Corporate Structure and IT Governance

This article discusses the organizational structure of Coles and the internal structure of its IT department. It also explores the role of CIO and IS department in protecting information assets and technologies from threats. The article presents key arguments and references related to the reporting structure of CIOs in public and private sector organizations.

Running head: CORPORATE STRATEGY AND IT GOVERNANCE
Corporate Structure and IT Governance
Name of Student:
Name of College:
Authors Note:
1

CORPORATE STRATEGY AND IT GOVERNANCE
Role of CIO and organisational arrangements for IT
The Organizational chart of Coles is as follows:
Fig: Organizational chart of Coles
Source: Author
2
Board of Directors
CEO
Marketing
Dpt.
IT Dept.HR Dept.Finance
Dpt.
Product and
Quality Dpt
Service
Dpt.
Director of
Marketing
Director of
Finance
Director of
Human
Resource
Director of
IT
Director of
Product
and
Quality
Director of
Service

CORPORATE STRATEGY AND IT GOVERNANCE
The internal structure of the IT department of Coles is as follows:
3
IT Department
Director of IT
Chief Information
Officer
Chief Information
Security Officer
Chief Data Officer
Information
Technology
Analyst
Senior Security
Specialists
Database
Administrator
IT System
Administrator
Senior System
Analyst

CORPORATE STRATEGY AND IT GOVERNANCE
Fig: Internal structure of the IT department of Coles
Source: Author
The first organizational chart of Coles regarding the position of IT department in the
organizational structure at Coles follows a flat hierarchical structure whereas the second
organizational chart is regarding the internal structure of the IT department of Coles that follows
a tall hierarchical structure. The common feature between both the organizational charts which
are discussed above is the chain of command. According to Sajja (2015) the main difference
between both the organizational chartsis that in flat organizational structure, there are fewer
management levels with each level containing a broader area or group whereas in tall
organizational structure, there are greater management levels. The possible rationale for the
differences is the clarity and managerial control which exists between both the organizational
structures. The structure which is observed in first organizational chart of Coles is de-centralized
organizational structure in which there are several individuals who are responsible for taking
decision in the company and they rely on a team environment at different levels in the business.
Whereas, the structure which is observed in the second organizational chart of Coles is
centralized structure in which one individual is responsible for taking decisions in the
organization or in the department of the organization and they are solely responsible for the
outcome of their decision.
The commodification of IT along with the introduction of new technologies such as cloud
computing and mobile computing has a huge impact on the role of CIO and IS department of
Coles as it has presented them with a lot of challenges. The main role of the CIO and the IS
department of Coles is to establish and maintain the organizational vison, strategy and program
to ensure that the information assets and technologies are protected in an adequate manner.
According to Shahabadi and Pourkiani (2014) with the introduction of disruptive technologies
such as cloud computing and mobile computing, the role of the CIO and IS department of Coles
has increased as these technologies not only offers various advantages to a business but also
offers various threats and therefore it is the responsibility of the CIO and IT department to
protect the organization from such threats and safeguard the information assets and technology.
As the technologies of cloud computing and mobile computing are both controlled by a third
party service provider therefore it remains the responsibility of the CIO and the IS department to
4

CORPORATE STRATEGY AND IT GOVERNANCE
protect the vital Information assets and technology from being mis-utilized by the third party
service providers. The commodification of IT has also impacted on the roles of CIO and IS
department of Coles as it has led to the transformation of IT service and infrastructure of Coles
intended for exchange and therefore it remains their responsibility to facilitate the effective
exchange of Information Technology services within organization.
The key arguments which are in the observed in the article are as follows:
 According to Banker, Hu, Pavlou and Luftman (2018) there is no single reporting
structure which is always ideal for all firms.
 It is always not necessary that the CIO of an organization should always report to the
CEO to enhance the CIO’s clout in the organization.
 Strategic positioning of an organization influences the reporting structure for CIO’s.
In context of public sector organizations it can be stated that they should adopt a reporting
structure for CIO’s based on strategic positioning, as alignment of strategic positioning with CIO
reporting structure will help in positively affecting performances of organization.
The role of CIO in large government sector organization is different from that of a private sector
CIO, as government organizations offers greater variety of services with greater technological
challenges than private sector. Also considering complexity of information, reporting structure
that is followed by CIO’s in large government organization can help in determining their
performance.
The CIO’s of public sector should report to CEO, as majority of them are differentiators in
nature and therefore reporting of CIO to CEO is the most effective option as it impacts the
performance of organizations.
5

CORPORATE STRATEGY AND IT GOVERNANCE
References
Banker, R. D., Hu, N., Pavlou, P. A., and Luftman, J. (2011).CIO REPORTING STRUCTURE,
STRATEGIC POSITIONING, AND FIRM PERFORMANCE. MIS Quarterly, [Online] 35(2),
487. Available on-https://search.proquest.com/docview/869511430?accountid=30552 Accessed
as on 9/10/2018
Sajja, S. (2015). Survey of automotive industry CIOs: Emerging role of CIO as business
technology strategist. Business Premium Collection. [Online] Available
at-https://search.proquest.com/docview/1752059321?accountid=30552 Accessed as on 9/10/2018
Shahabadi, M. E., and Pourkiani, M. (2014). EXPLANATION OF THE RELATIONSHIPS
BETWEEN DIFFERENT TYPES OF ORGANIZATIONAL STRUCTURE AND STRATEGIC
CAPABILITIES OF EMPLOYEES: DESCRIPTIVE ANALYSIS. Kuwait Chapter of the
Arabian Journal of Business and Management Review, [Online] 4(1), 96-106. Available at-
https://search.proquest.com/docview/1564432006?accountid=30552 Accessed as on 9/10/2018
6