Question 63

Strategic information systems change operating procedures.

Strategic information systems primarily transform operating procedures within a business by streamlining processes, enhancing efficiency, and enabling better decision-making.

A) Customer satisfaction

While strategic information systems can indirectly improve customer satisfaction by optimizing other business functions, they do not directly change this component. Customer satisfaction is often a result of effective operating procedures rather than the focus of strategic information systems themselves.

B) Suppliers

Strategic information systems may influence supplier relationships through better data management and communication, but they do not fundamentally change the suppliers themselves. The systems focus on the internal processes of a business rather than external supplier dynamics.

C) Investors

Investor relations can be enhanced by strategic information systems through improved reporting and transparency, but like suppliers, they are not a primary focus of these systems. The systems aim to refine the internal workings of the business rather than alter the nature of investor involvement.

D) Operating procedures

This option is correct as strategic information systems directly impact how organizations operate. By automating tasks, improving data flow, and enabling more informed decision-making, these systems lead to significant changes in operating procedures, making them more efficient and effective.

Conclusion

The correct answer is D, as strategic information systems are designed to transform and improve operating procedures, which is crucial for enhancing overall business efficiency. Other options, while relevant to business operations, do not encapsulate the primary focus of strategic information systems. Thus, D is the only option that accurately reflects the core impact of these systems.