It Supports Organizational Performance in Turbulent Business Environments

IT Supports Organizational Performance in Turbulent Business Environments

Information Technology For Management 7th Edition

Transforming Organizations in the Digital Economy

Efraim Turban, Linda Volonino

D. Minimol Job - AOU Chapter 1 1

 Describe the characteristics of digital economy and digital enterprises

 Define Information systems, computer based information systems and Information Technology

 Explain the relationship between performance, environmental pressures, organizational responses and information technology

 Identify major pressures in the business environment and describe major organizational responses to them.

D. Minimol Job - AOU Chapter 1 2

 Describe adaptive enterprises and why they are IT- independent.

 Explain the function and impacts of social computing and social networking.

 Understand the importance of learning about information technology.

D. Minimol Job - AOU Chapter 1 3

 The world of digits or numbers or you can say world of computers where we use only two digits 0 and 1.

 We call it as machine language.

D. Minimol Job - AOU Chapter 1 4

 Conducting business in the digital economy means using web based systems on the internet and other electronic networks to do transactions electronically.

 First we will describe digital organizations and the digital economy.

 Then we will consider e-commerce and networked computing and look at the impact they have made on how companies do business.

D. Minimol Job - AOU Chapter 1 5

 The case study illustrated in page number 2 introduced us to digital enterprise.

 As we know, now a days thousands of organizations are moving to become digital.

 There are many definitions as to what is digital enterprise.

D. Minimol Job - AOU Chapter 1 6

One of them is :

 A digital enterprise is a new business uses IT in a fundamental way to accomplish one or more of three basic objectives:

◦ reach and engage customers more effectively ◦ boost employee productivity

◦ improve operating efficiency.

 It uses converged communication and computing technology to improve business processes.

D. Minimol Job - AOU Chapter 1 7

 E-Business: The use of electronic technologies to transact business

 Collaboration: People and Organizations interact, communicate, collaborate, and search for information

 Information Exchange: Storing, processing and transmission of information

Major IT characteristics in the Digital Economy is listed in Table 1.1

D. Minimol Job - AOU Chapter 1 8

 A digital enterprise uses networks of computers to electronically connect:

 All its internal parts via an intranet

 All its business partners via the internet, or via a secured internet, called an extranet or via value added private communication lines.

 An example of how this is done is shown in the following figure.

D. Minimol Job - AOU Chapter 1 9

D. Minimol Job - AOU Chapter

1 10

 The digital economy refers to an economy that is based on digital technologies.

 The digital economy is also sometimes called the internet economy, the new economy, or the web economy

 In this new economy, digital networking, including wireless and communication infrastructures provide a global platform over which people and organizations devise strategies, interact, communicate, collaborate and search for information.

D. Minimol Job - AOU Chapter 1 11

This platform includes the following:

 A vast array of digitizable products-databases, news and information, books, magazines and electronic tags, TV and radio programming, movies and electronic games musical CDs and software- which are delivered over the digital infrastructure any time, anywhere in the world.

 Consumers and firms conducting financial transactions digitally- through digital currencies or financial tokens carried via networked computes and mobile devices.

 Physical goods such as home appliances and automobiles, which are equipped with microprocessors and networking capabilities.

D. Minimol Job - AOU Chapter 1 12

1. Buy film in a store

2. Load your camera

3. Take pictures

4. Take roll of film to store for processing

5. Pickup the film when ready

6. Select specific photos for enlargement

7. Mail to family and friends

D. Minimol Job - AOU Chapter 1 13



1st Generation Digital Photography

◦ Old economy (except 6 and 7) were replaced by using a scanner and emailing

2nd Generation Digital Photography

◦ Use a Digital Camera, no film, no processing

3rd Generation Digital Photography

◦ Your Digital Camera is now in your mobile phone, your binoculars,