What are the strategic business objectives of information system?
Answers
Answer:
The strategic business objectives of information system are :-
1. GROW SHAREHOLDER VALUE
The top goal of your organization may be to increase the value of your organization for your shareholders, stakeholders, or owners. Value can be defined in many ways, so this would need to be clearly defined.
2. GROW EARNINGS PER SHARE
This objective implies your organization is trying to increase its earnings or profits. For publicly traded companies, a common way to look at this is through “earnings per share.” This can be measured quarterly and/or annually.
3. INCREASE REVENUE
Revenue represents growth in your organization, so increasing revenue is a sign of company health. You can make this more specific by defining revenue from a key area in your organization.
4. MANAGE COST
On the other side of revenue is the costs or expenses in your business. As you grow (or shrink) you need to carefully manage cost—so this may be an important objective for you.
5. MAINTAIN APPROPRIATE FINANCIAL LEVERAGE
Many organizations use debt—another word for financial leverage—as a key financial tool. There may be an optimal amount of debt you’d like to stay within.
6. ENSURE FAVORABLE BOND RATINGS
For some organizations, bond ratings are a sign of healthy finances. This is a regularly occurring objective for a public sector scorecard.
7. BALANCE THE BUDGET
A balanced budget reflects the discipline of good planning, budgeting, and management. It is also one that is typically seen in the public sector—or within divisions or departments of other organizations.
8. ENSURE FINANCIAL SUSTAINABILITY
If your organization is in growth mode or has an uncertain economic environment, you need to be sure you remain financially stable. Sometimes this means seeking outside sources of revenue or managing costs that are appropriate to your operations.
9. MAINTAIN PROFITABILITY
This is a solid top-level objective that shows balance between revenue and expenses. If your organization is investing in order to grow, you may look to an objective like this to govern how much you are able to invest.
10. DIVERSIFY AND GROW REVENUE STREAMS Some organizations receive revenue from multiple sources or products and services. They set an objective to grow revenue in different areas to ensure that the organization is stable and not subject to risk associated with only one revenue stream.