Monday, December 5, 2022

Investment

 Investment management should involve more planning, more compromise on budget expenditures, and changing outlooks on profit margins as a result.

Businesses become more dynamic than ever, there is an element of uncertainty with respect to unknown risks. Organizations are at different stages of the business development cycle. oftentimes, the management probably wouldn't know where to invest in new capabilities. 

Businesses need to build their own navigation system, and improve return on investment, either creating a new business model or taking other business initiatives for solving problems effectively.

Look for investments to be justified and governed on the basis of benefit delivery in a consistent way: To improve long term business competency and realize business vision, corporate management needs to broaden their investment perspectives, leverage emerging trends for exploring business investment opportunities. Forethoughtful organizations 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

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. Through logical scenario planning, ineffective investments could be avoided if they ultimately turn out to be unnecessary, an effective investment portfolio can be justified on the basis of benefit delivery consistently.

# and financial investment of the business initiatives are aligned with at least one strategic objective over the total portfolio: In an organizational setting, the focal point is to calculate which business initiatives provide the greatest return, and which would be invested in the future. You need to know your organization and what you're getting from your investments. Then, you can make informed decisions moving forward. Organizational value is an informal term and could mean different things to different people. Logical ROI analysis with solid financial numbers can articulate the prospective business value persuasively.

VALUE is not something that can easily be measured and is very subjective. 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 grasping growth opportunities to achieve tangible business results.

Cost optimization and investments affect business productivity and customer experiences positively:
Business cost can be categorized into operational cost, financials (budget, expenses, service costs, etc), people cost, vendor cost, etc. Assume you're going to allocate the cost of investment across several revenue-generating groups, whatever the cost is estimated to be, they will then need to determine the net increase in revenue at current margins needed to offset the cost of the business.

It’s always important to optimize cost, eliminating waste. The adjustments should be made to these business spending numbers by shifting the spending figures after closely evaluating the key business performance metrics in a micro and macro environment to achieve cost optimization for the business.

To survive and thrive for the long-term perspective, the risk assessment and management process helps investment management prioritize the activities they are committed to resourcing. Investment management should involve more planning, more compromise on budget expenditures, and changing outlooks on profit margins as a result.

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