Saturday, October 1, 2022

Investmentroi

Return On Investment value proposition should be an overall measurement based on the combination of cost, schedule, quality, performance, and satisfaction of varying stakeholders, to ensure business long term success.

Venture investment is a complex business activity to catalyze business growth. The corporate investment management needs to ensure that they are investing in the right business initiatives by taking a scientific approach, creating headroom for innovation and business growth. 

The logical investment scenario helps an organization assess whether the business improvement or people delight associated with emerging trends is the right investment to be done in the first place, and ensure the expected return on investment.

Investment management presents the value proposition as an “asset under construction”: Without investment, without business growth. One of the crucial tasks for business management is to make objective investment justification, evaluate return on investment, identify where budget, talent, and other resources & assets are focused vs. neglected, to ensure that the organization spends the money in the right way.

It's important for the management to clarify what investments you should direct more assets to by identifying and evaluating investments in a way that solves problems with priority, driving business value in terms that business stakeholders understand. Return on investment tells the business management how well an investment repays the company. Solid investment portfolios help the business open up new channels of revenue and monetization within the enterprise and their ecosystem, to get higher than expected business results.

Investment management evaluates the impacts of investment decisions by presenting a "strategic leverage” to maximize the business's benefit from their investment:
Great investment managers ask insightful questions about the impact of ideas, the practicality and scalability of business models, cost/risk analysis, return on investment, etc, oversee the full set of business requirements to ensure the cohesiveness. So they can make wise investments and improve return on investment by articulating what the pros and cons of each investment option are for today and the proposed tomorrow, and to determine all the customers, users, and stakeholders and obtain their involvement, to make better investment justification.

The challenge for business investment management is to reinvent business continually by looking forward, looking ahead and being proactively looking for opportunities for business growth. Ensuring visibility into each investment is established to provide ongoing investment health information as well as enable understanding overall portfolio health. For all critical business investments, generate clearly defined business cases, look for investments to be justified and governed on the basis of business benefit delivery.

Investment management needs to ensure that they are investing in the right business initiatives as “change/innovation catalyst”: Organizations not only need to survive today, but also thrive for the future. It's Important to create headroom for innovation and business growth. Invest in great ideas and generate unique business value to fit for the strategic goal of the company; invest in people with talent, invest in the trend - the new technology, advanced knowledge and practices. All those investments, like seeds, can grow innovation fruits, rejuvenate corporate culture, enhance effective idea generation-selection-implementation cycle, lift the organization up to growth trajectories, etc.

Great investors advocate entrepreneurship/intrapreneurship activities, strike the right balance of short-term gain and long-term perspective, and put emphasis on investing in people-centric innovation. It’s important to make an objective assessment of their investment portfolio, achieve business initiatives portfolio agility to anticipate and respond to changing market conditions, and build unique organizational competency. An innovative organization needs to discover the new path for business growth by taking entrepreneurship activities, continues to generate fresh ideas, moves ideas through their life cycle to achieve first to market, and delivers innovative solutions to tailor customers’ needs.

Investment is both art and science. Organizations need to make sure that enough resources are available to deliver the programs, talented professionals are put in the right positions, the processes are goal driven, to ensure higher than expected results. The Return On Investment value proposition should be an overall measurement based on the combination of cost, schedule, quality, performance, and satisfaction of varying stakeholders, to ensure business long term success.

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