Briefly Describe How Organisational Strategy Determines the Functions of Information

question 30

Essay

Briefly describe how organisational strategy determines the functions of information systems.

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Definitions:

Residual Income

This is the amount of income that exceeds the minimum rate of return.

Investment Opportunity

An option to invest capital with the expectation of achieving a financial return.

Delivery Cycle Time

The total time taken from the receipt of a customer order to the delivery of the product, indicating the efficiency of the entire supply chain process.

Residual Income

The income that remains after deducting all costs, including opportunity costs, from business operations or investments.