What business objective is a firm attempting to achieve by investing in new information systems capabilities to comply with federal legislation?

Investing in new information systems capabilities to comply with federal legislation primarily serves the objective of survival. This is because organizations must adhere to legal requirements to operate legally and avoid penalties, fines, or potential shutdowns. Compliance with legislation is crucial for the ongoing viability of the business. Failing to comply might lead to severe legal repercussions, damages to the firm's reputation, and the possible loss of customer trust.

While the other objectives, such as customer intimacy, operational excellence, and improved reporting, are beneficial in the broader business context, they do not directly relate to the immediate need for compliance. Instead, compliance is fundamentally linked to the core survival of the business within the regulatory environment. Therefore, ensuring that the company remains compliant is essential to its continued existence and operation in the market.