In the early years of computing, the information-systems function (generally called data processing) was placed in the finance or accounting department of the organization. As computing became more important, a separate information-systems function was formed, but it still was generally placed under the CFO and considered to be an administrative function of the company. In the 1980s and 1990s, when companies began networking internally and then linking up to the Internet, the information-systems function was combined with the telecommunications functions and designated the information technology (IT) department. As the role of information technology continued to increase, its place in the organization also moved up the ladder. In many organizations today, the head of IT (the CIO) reports directly to the CEO.
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Organizing the Information-Systems Function
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