Which element of the IT investment portfolio is associated with the long-term strategy of the firm?

The element of the IT investment portfolio that is associated with the long-term strategy of the firm is strategic systems. These systems are designed to align closely with the organization's overall goals and objectives, effectively facilitating strategic initiatives and providing competitive advantages.

Strategic systems typically involve technologies and processes that not only support the current operations of the business but also propel it towards future ambitions. They play a vital role in shaping the direction of the firm, as they are developed to respond to market shifts, support innovation, and enhance organizational capabilities over the long haul. In essence, they enable the firm to make informed decisions that align with its strategic vision.

In contrast, firm wide infrastructure refers to the foundational technologies and resources that support overall IT operations but do not directly contribute to long-term strategy. Transactional systems focus primarily on day-to-day operations and processing high volumes of transactions, while informational systems are designed for reporting and data analysis, typically serving more immediate decision-making needs. Thus, while all elements contribute to the IT portfolio, strategic systems are distinctly positioned to drive and sustain long-term strategic outcomes for the firm.