Information systems are essential for conducting day-to-day business as well as achieving strategic business objectives. Some firms, such as Amazon and ETrade, would be nonexistent without information systems. It is difficult to imagine some service industries, such as finance, insurance, and real estate industries, could not operate without information systems. The ability of a firm to use IT is becoming intertwined with the firm's ability to implement corporate strategy.                   

As electronic business and electronic commerce grow in popularity and more firms digitize their operations, having useful information is becoming even more important to the global business community. Business firms invest heavily in information systems to achieve six strategic business objectives: operational efficiency, new products, services & business models, customer and supplier intimacy, better decision making, competitive advantage, and survival.

How Information Systems Are Transforming Business

Wireless communications, including computers and mobile hand-held computing devices, are keeping managers, employees, customers, suppliers, and business partners connected in every way possible. Email, online conferencing, the Web, and the Internet, are providing new and diverse lines of communication for all businesses, large and small. Through increased communication channels and decreased costs of the communications, customers are demanding more of businesses in terms of service and product, at lower costs. E-commerce is changing the way businesses must attract and respond to customers.