Final answer:
Business firms invest in information systems to achieve strategic objectives such as operational excellence, innovation, customer and supplier intimacy, improved decision making, competitive advantage, and survival.
Step-by-step explanation:
Six Strategic Business Objectives, Business firms invest heavily in information systems to achieve several strategic business objectives. These include:
Operational excellence: Businesses aim to improve efficiency and productivity through automation and coordination of activities. New products, services, and business models: Information systems enable innovation in products and services and support the creation of new business models.
Customer and supplier intimacy: Achieving higher levels of customer satisfaction and loyalty and developing strong ties with suppliers can both become more attainable with the help of advanced information systems.Improved decision making: With better data and analytics, firms can make more informed decisions, leading to better outcomes.
Competitive advantage: Information systems can provide a competitive edge by setting a business apart from its competitors. Survival: Staying current with technology can be crucial for a business's survival as the market evolves and new technologies emerge.
Investment in technology, human capital, and physical capital is essential for firms pursuing these objectives. They must provide incentives and create a stable, market-oriented economic climate. Embracing new information and communications technologies can lead to global expansion, improved management of operations, and can help small firms compete in 'winner-take-all' markets.