Strategic Business Objectives of Information System

Topics: Strategic management, Business, Information systems Pages: 3 (789 words) Published: January 28, 2013
Munadil Yarid
MIS 513
Assignment 1

Strategic Business Objectives of Information System

We are in the age of information. Today there are more than 23 million managers and 113 million workers in the labor force depend on information system to accomplish their business in the United States of America. Information systems are essential to achieve strategic business objectives. Today’s global economy, transformation of industrial economies, transformation of the business enterprise, and the emergence of digital firm require information systems essentially in business. Information system is the pillar for excessing business today. In many businesses, survival and the ability to achieve strategic business goals is difficult without extensive use of information technology. There are six reasons or objectives why businesses use information system:  Operational Excellence:

In any business improves its efficiency and accuracy of their operations in order to achieve higher profitability. Information systems are also important managers for achieving higher levels of efficiency and productivity in business operations. As an example I can include that Wal-Mart uses a Retail Link system, which digitally links its suppliers to every one of Wal-Mart's stores. as soon as a customer purchase an item , the supplier is monitoring the item , knows to ship a replacement to the stores.

New products, services, and business models:
 Information system is one of the main elements for organization to create new products and services, and also a completely new business idea. Example, Apple inc transformed an old business model based on its iPod technology platform that included iPod, the iTunes music service, and the iPhone. Customer and supplier intimacy:

If a firm service its customers well, the customers normally respond by coming again and purchasing more products or services and firm can increased revenue and profits by that. The more a business engages its suppliers, the...
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