Investmentinsight

The success of investment is usually based on how they enable business growth and support the business objectives by delivering measurable services and solutions in time to the market perspective.

The digital world moves into a hyper-connected and interdependent relationship under “VUCA” business new normal, it’s a healthy management discipline to gain a comprehensive value stream view, leverage value models to make wise investments, manage portfolios of business initiatives to achieve multidimensional business value effectively. 

All investments and meaningful business activities should strive to build tangible business capabilities to achieve ultimate business goals.

Investment- strategic alignment: Visibility into each investment is established to provide ongoing reliable investment information as well as enable understanding overall portfolio health and effectiveness. The management needs to enhance investment-strategic alignment by clarifying: What investments, or even portfolios should I direct more assets to? Are they diversified? What is the relative health (risk, value, strategic importance) of each of the portfolios? What, and where, are there talent gaps? What investments can we make that lead to staff and customer satisfaction? How can I better communicate to and partner with the business to improve the portfolio’s value? Which benefits will be achieved through addressing the key business drivers? Can these business benefits be measured and quantified? What outcomes can the sponsor expect to achieve through investment in the proposed initiative? Make sure the # and financial investment of the projects that are aligned with at least one strategic objective over the total portfolio.

Capability mapping- holistic investment: There are both opportunities and risks for every investment. There is an element of uncertainty with respect to unknown risks. The comprehensive investment assessment includes things such as resources consumption, growing tendencies, cost-benefit analysis of business capability development, etc. In many circumstances, business management probably wouldn't know where to invest in new capabilities. even if the organization thought there was any value justification for making the investment. For instances, organizational managers need to be the digital visionaries to derive the most value out of the innovation investments by translating the promise of technology to strategic and competitive advantage for the company.

To improve long term business competency and realize business vision, forethoughtful organizations leverage the investment framework approach to make holistic investment decisions, generate business cases and look for investments to be justified and governed, scale up and broaden their ecosystems and revenue streams to become more responsive and flexible; they continually evaluate aggregate investments in terms of value, risk, and reward, for building a cohesive business capability portfolio.

Objective assessment of the investment portfolio via nonlinear logic for achieving high ROIs: Each organization has specific, measurable goals and objectives they have to hit through investing. Return on Investment is a ratio, a percentage of the dollar amount your company gains from investment efforts over what it initially spent in simple terms, it’s the company’s payback. Great investors make an objective assessment of their investment portfolio for getting high ROIs.

The return on investment should be achieved and can be measured if there is a marked improvement in optimizing processes, delighting customers or employees, applying emerging technologies, managing risks to an acceptable level and grasp growth opportunities to achieve tangible business results. Follow “SMART” principles to measure the return on investment result. not just cost. Cost is a component of value, but ultimately what matters most to an organization is value. Use hard numbers if you can, measure the right things, and measure them right.

The success of investment is usually based on how to solve certain problems and enable business growth, play the number game wisely to demystify the puzzle of investment. The success of investment is usually based on how they enable business growth and support the business objectives by delivering measurable services and solutions in time to the market perspective.

Posted in: Digital Maturity,KPIs