Chapter 1 – Managing IT in a Digital World
Chapter 1
Managing IT in a Digital World
Objectives
Chapter 1 sets the context for studying the management of information technology in an increasingly
digital world. The overall objective of this chapter is to motivate the course content. An overall theme of
the text is that IT is a strategic enabler and the management of IT is a responsibility of not only IS leaders
and IS specialists, but also IT-knowledgeable business managers.
communications devices. Many already depend on the Web not only for information, entertainment, and
We therefore begin the chapter with recent IT trends in computer hardware, software and networks. This
sets the stage for the in-depth discussion of these IT components in the first two chapters of Part I.
The sections that follow are designed to introduce students to the roles of the IS function in organizational
settings. We briefly introduce how IT is being used by organizations to lower costs as well as differentiate
its product and/or service offerings. IT has also enabled new ways that people work and live, and we
introduce the concepts of telecommuting and virtual teams.
Then we introduce students to three broad categories of IT resources that need to be managed in
organizations, based on the three IT-asset framework of Ross et al. (1996): the technology infrastructure,
the IS human resource, and the business/IT relationship. The relationship asset discussion reinforces the
Part I of this textbook focuses on fundamental concepts and terminology, as well as IT industry
trends, for the basic IT components that IT-savvy business managers will need to be familiar:
computer systems (hardware and software), networks, and data.
Part II provides in-depth descriptions of three different categories of software applications used by
nagerial support systems, and e-business systems that
leverage the Internet.
Part III presents methods and techniques for developing and implementing applications and managing
IT projects; separate chapters are provided for basic systems concepts, custom–developed systems,
purchased package solutions, and managing IT projects.
Chapter 1 – Managing IT in a Digital World
Teaching Suggestions
To help students understand how IT capabilities have evolved in recent decades, we have found it useful
to ask students to think about how they used IT (for personal, educational, and/or professional activities)
several years ago versus how they are using computers and communication networks today. If you have
non- -Internet
computing solutions as well as the need to have access to land lines and hard-wired networks for
of forecasting the potential impacts of technology innovations.
One approach for motivating the technology chapters (in Part I of the text) is to split the class in half, give
everyone some answer cards (e.g., A, B, and C) and then ask multiple choice questions on hardware,
software, and network innovations that they may be familiar with as individuals (such as the first Web
browser, Smartphones and app stores, broadband options, etc.). All students hold up their own answers,
something equivalent.
News stories on IT topics and the IT industry (in print or Web-based) can also be used to help motivate
the course content. Students will also be introduced to the idea that they can easily advance their IT
knowledge by continuing to read articles written for a general business audience about emerging
technologies and IT industry developments not only during this course, but after this course has ended.
The Midsouth Chamber of Commerce (A) case study that immediately follows Chapter 1 sensitizes
students to what can happen when a well-meaning business manager is the champion for the purchase of
an information system, but there is no formal project team for acquiring and implementing new software
that affects multiple functions. Because this case takes place in a very small organization, it is easy for
these management issues to be brought out but this type of management issue is also common in other
Chapter 1 – Managing IT in a Digital World
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REVIEW QUESTIONS
1. Define what is encompassed in the term information technology.
2. What are some of the ways that IT has become “pervasive”?
3. What kinds of portable IT help employees work more efficiently and effectively? What may
interfere with productivity?
4. What kinds of IT can help support teams when team members work at different locations?
5. How have some businesses used the Internet to compete based on low cost, product/service
differentiation, or both?
Low Cost: The Internet can increase a company s reach to new customers and new suppliers, who may
even be on different continents. Example: Airline companies now have a direct channel to consumers and
of their tickets.
6. What kind of a business might choose to have low levels of dependence on IT?
7. What three types of IT resources need to be managed well?
8. What are some examples of newer IT manager roles, and why are they needed today?
9. For what reasons might an IT manager have a reporting relationship with a CIO as well as with
a senior business manager?
Chapter 1 – Managing IT in a Digital World
Discussion Questions
1. Provide an example of how a business function with which you are familiar (e.g., sales,
marketing, finance, operations/production, accounting, human resources) utilizes IT for
2. Describe some ways that you personally use information technologies differently than you did
just a few years ago.
3. Some organizations purposefully select a CIO that has strong business management
backgrounds, not just technical experience. Under what organizational circumstances do you think
this might be an effective choice?
4. Describe a new business for which you think a “virtual organization” which has no physical
office or headquarters could be an effective design. What are some ways that the organization
could use IT to help them effectively run their business?
5. Would you like to work as a free agent? Why or why not?
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6. Using the Internet, identify what is meant by the term digital divide. What actions do you think
could be taken to lessen this divide both within your own country and elsewhere in the world?
7. Identify some Web sites for publications that could be useful supplementary resources for
studying some of the IT topics in this textbook.
http://www.computerworld.com