Principles of Organizational Behavior, 3rd Edition

27Use Advanced Information Technology to Transform Organizations

DONGYEOB KIM¹, MARYAM ALAVI², AND YOUNGJIN YOO³, PH.D.

^{1, 3} The Weatherhead School of Management, Case Western Reserve University

² The Weatherhead School of Management, Case Western Reserve University

Dramatic and rapid developments in information technology (IT) have brought fundamental changes to the competitive landscape, and to the ways companies operate and compete. Whether digital-native or traditional, companies can no longer rest on the successes of yesteryear. Instead, they must constantly be on the lookout for emerging IT developments that could render their core offerings, business models, and strategies outmoded overnight. Companies that once dominated their markets have seen their key products quickly become obsolete due to these disruptive technologies. In this chapter, we summarize some of the key technologies and trends that underpin these fundamental changes. We also discuss five different ways companies can use IT as a catalyst for organizational transformation in the digital age.

Traditionally, organizations have used technologies that come from three broad categories: production technology, information technology, and communication technology. Production technology refers to the machines that have powered production systems since the Industrial Revolution. These technologies convert natural resources into products and market offerings. In his historical review of the rise of large-scale vertically ...