1 Chapter Summary Chapter 1: IT support for Organizational

Chapter Summary
Chapter 1: IT support for Organizational Performance
Script based upon Chapter 1 Instructors Manual:
Turban, E., Leidner, D., McLean, E., Wetherbe, J. (2008). Information
technology for management: Transforming organizations in the digital
economy. (6th ed.) New Jersey: Wiley.
ISBN: 0471787124
This is a summary of Chapter 1 of the Turban textbook titled, Information
Technology for Management: Transforming Organizations in the Digital
Economy. The chapter is titled IT Support for Organizational Performance.
When you complete the chapter material, you should be able to understand
the concept of the digital economy, the impact that business pressures play
on the organization, their responses and adaptations to these pressures, and
the role that information technology plays, both within and outside of the
Chapter 1 should help you understand how the advent of the digital
economy has fundamentally altered business processes and activities.
Information technology is now a major facilitator in organizations; it has
changed how, why, and where we do business.
Many of the concepts presented in this chapter are not new. For example,
many cultures have engaged in barter, auctions, and group purchasing for
centuries. These time-tested activities are being adjusted to fit a digital
format. You should understand how these transactions take place, because,
to quote the adage, “those who ignore history are doomed to repeat its
We often take for granted how technology has changed the way we do
something—for example, the processing of a photograph. As you read the
“New Versus the Old” sections of the chapter, consider how banking, ticket
sales, education, testing, movies’ special effects, job searches, and access to
libraries have changed.
The section, “What is ‘new’ about Information Technology and the business
environment?” explains knowledge management, finding employment
opportunities in IT, and using IT to become a more successful manager, and
also what the ‘digital economy’ is, and how IT is changing the commercial
landscape. This section may interest you as you identify your professional
goals for your autobiographical essay assignment in week 1.
Let’s take a deeper look at each section in Chapter 1.
Section 1, Doing Business in the Digital Economy, explains the
importance of information technology as a facilitator of business
activities. It discusses what the digital economy is and looks at future
opportunities. This section also compares and contrasts the old
economy with the new and explores various business models.
Section 2, Business Pressures, Organizational Performance &
Responses, and IT Support, centers on various drivers: market
pressures, technological advancements, social and political pressures,
as well as the contemporary organizational responses. You may want
to think about a current ethical or business problem—for example,
outsourcing overseas, exchange rate fluctuations, free trade
agreements, local and global competition, business alliances, or the
dot-com failures—to help frame this material in practical terms.
Section 3, Information Systems and Information Technology,
establishes the foundation you will need to understand the basic
concepts and terminology of the information technology field.
Section 4, The Adaptive, Agile and Real-time Enterprise, focuses on
the dynamic nature of the business environment. Pay particular
attention to the means by which technology has accelerated the pace
of change. If properly attended to, IT may enable a corporation to
remain ahead of the pace of the change. If IT is neglected, the
organization can easily fall behind the curve.
Section 5, Information Technology Developments and Trends, gives
you a glimpse into the future with a few of the newer developments in
Section 6, Why Should You Learn About Information Technology?
explains the importance of information technology in facilitating
organizational practices.
Section 7 Plan of the Book, reviews the layout of the chapters. This
section will help you have a more enriching experience as you read.
The final Section describes Managerial Issues. You will find a section like
this at the end of every chapter. It is a focus on the special concerns that a
manager faces when adapting technology to the organization—and adapting
the organization to technology.
In summary, chapter 1 explores the digital economy, business models,
business pressures, and critical responses to the pressures. Additionally, it
introduces you to information systems and information technology, as well
as the current trends in information systems. The chapter concludes with a
section on the importance of learning about information systems.