Tuesday, December 21, 2021

Innovationinvestment

Insightful investors make an objective assessment of the investment portfolio to ensure that all business investments and meaningful business activities should strive to build tangible business capabilities for achieving ultimate business goals.

Organizations across industrial sectors face hyper-competition and a sea of changes, they have to keep investing, growing, and building differentiated competency. 

The management needs to evaluate individual and aggregate investments decisions by presenting a strategic look to maximize the business's benefit, and continue to make an objective assessment of their investment in terms of value, risk, and reward.

Invest in great ideas and generate unique business value to fit for the strategic goal of the company: 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, delivers personalized solutions to tailor customers’ needs by enabling an effective idea generation-selection-implementation cycle. There are both opportunities and risks for every investment. It presents a greater challenge and reward by pioneering the development of new products, services, processes, or business models, etc. 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, make an objective assessment of their investment portfolio, achieve portfolio agility to anticipate and respond to changing market conditions.

Investment is both art and science. 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. They keep track of the diversification, value, strategic importance, and risk of portfolio, engage employees, motivate people to solve problems in alternative ways, ensure a steady flow of ideas flow in the pipeline, improve risk intelligence, and manage innovation portfolio in a structural way.

Invest in talented people by identifying the gap between the talent for tomorrow and skills for today:
People are the center of running contemporary business, outdated thoughts, knowledge, or skill gaps are the reality. Insightful investment managers not only invest on fresh ideas or excellent business models, more importantly, but they also invest on top talented people, how to unleash their potential, create new businesses and advance human society. It’s important to identify, analyze, and fill talent gaps and define technical/functional competencies required to achieve long term business goals.

People are always the focal point. Great investors invest in people's vision, character, talent; understand what it needs to drive future business growth and innovation, to ensure the brighter future of the organization. Human capital is the largest intangible asset in any organization. Put the investment framework in place to map the strategic objectives into key performance indicators and then, determine what capital investments will accelerate the changes you want to see in your investment portfolios, and make the evaluation based on financial and other related metrics to evaluate multifaceted business value.

Invest in information technology by making a comprehensive business justification to build unique business advantages:
Information Technology investment is important because information is the gold mine all forward-looking companies dig in, technology is often the disruptive force, but usually costly. The logical investment scenario helps an organization assess whether the business improvement associated with technology is the right investment to be done in the first place, and ensure the expected return on investment. Considering many companies across sectors making a huge investment in sophisticated information technology tools are greatly wasted and fail to reach customers’ expectations. When investment managers have sufficient knowledge and understanding of Information Technology, they can make a sound judgment about Information Technology investment and know how to assess performance objectively.

Information technology investment is a strategic issue to lead business growth and maturity. The Information technology return on investment value proposition should be an overall measurement based on the combination of cost, schedule, quality, performance, and satisfaction of the customer, users, and stakeholders. Before the investment is made, it’s important to identify and predict specific measurable results from the investment. After the investment is made, it’s also critical to keep track of and review upon the financial results of Information Technology investment and manage resource, equipment, facility, or cost in an efficient way. In order to run a high performance business, information technology is critical to overcome challenges such as scalability and sustainability of the ecosystem by creating an impactful and sustainable business model with real-time service integration; or implementing automation by offering seamless and fast connectivity, open platform architecture, secure and transparent operations.

It’s important to understand that there are both opportunities and risks in every investment. For all critical business investments, generate business cases and look for investments to be justified and governed on the basis of business benefit delivery, return on investment and contribution to innovation. Insightful investors make an objective assessment of the investment portfolio to ensure that all business investments and meaningful business activities should strive to build tangible business capabilities to achieve ultimate business goals.

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