You can also download a sample chapter here: here (601k PDF)
Literacy and fluency* have to do with our ability to use a technology to achieve a desired outcome in a situation using the technologies that are available to us. This applies to our ability to use a hammer, nails and wood to build the house that we intend to build:
..and it applies to our ability to use digital technologies to have the intended positive effect on people and situations:
Note that a literate person is perfectly capable of using the tools. They know how to use them and what to do with them, but the outcome is less likely to match their intention. It is not until that person reaches a level of fluency, however, that they are comfortable with when to use the tools to achieve the desired outcome, and even why the tools they are using are likely to have the desired outcome at all.
*For the sake of simplicity, we have boiled all of this down to three levels of skill, and have given them what we think are easy-to-understand names. Other words for these two levels are transactional (literacy) and transformational (fluency). For those of you who are looking for deeper explanations of the things that a person goes through in learning such things, you may want to look at the Dreyfus model of skill acquisition, and the conscious competence model (origin unclear).