Thursday, February 17, 2022

Initiateinvestment

The value-based investment needs to be driven by concepts like accelerated innovation, collaborative value or collective advantage and multi-layer ROIs, open up new channels of revenue and monetization for solving complex problems and advancing human society.

Contemporary societies have the very characteristics of information abundance, hyper-connectivity, interdependence, full of opportunities and risks. 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 wise investors analyze business models that list all of the sources of value, cost, and risk, and contain formulas to interconnect them, deciding whether or not an investment is worth making.

Business value model generation and purpose: Business value models are decision aids and investment tools being used for assessing the value of an investment objectively in order to achieve high ROI. Business value is multi-faceted, it’s interesting to see how business value is in the eye of the beholder. Strong business cases articulate how the business initiatives situates the organization within a growing and highly profitable product market niche. Wise investors make an objective assessment of what value this investment provides the business," and how to improve ROI.

A "Business Value Model" is neither a business model nor a business architecture model, it is a model used for assessing the value of an investment to the business. Also, do not confuse the means with the end, describe the business initiative’s benefits and costs flow, learn how to leverage reliable information in deciding have to define investment portfolio strategies to make smart investments for achieving high ROIs, to ensure that all business investments and meaningful business activities should strive to build tangible business capabilities to achieve ultimate business goals.

Evaluation based on projections for multifaceted business value and future revenues, cash flows, income: Insightful investors make an objective assessment of the investment portfolio by asking good questions: Why should we invest in what you are proposing? How to accurately project the economic impact of the proposed innovation initiatives. Not all business value is directly related to ROI. Besides financial benefits such as economic value or shareholder value, there are other forms of value such as employee value, customer value, supplier/channel partner/alliance partner value, managerial value, and societal value, etc.

Before the investment is made, the requester should be required to identify specific measurable results from the investment, the delivery timeline, and the specific methodology to be used to measure the results. ROI, Net present value, internal rate of return, and time to payback are all measurement methods. It’s important to define measures appropriate to predict and assess the future revenue; showing how well they satisfy or delight customers, generate multidimensional business value, and support the business objectives by delivering services and solutions in time to the market perspective.

A balanced investment portfolio leverages emerging trends to solve problems, and ensure you are investing in the right business initiatives, create headroom for innovation and business growth: When you are looking at creating digital options and making smart investment, it's about exploring new business models, then it is not just the value of the investment which matters, rather it is the breadth of vision and the depth of understanding.

In the organizational setting, make sure the executive team first understands what it needs to drive future business growth and improve cash flow, take a lead role in identifying, assessing, designing, coordinating, implementing, and revising opportunities for transforming the business. Put the framework in place to review diverse parameters, then determine what capital investments will catalyze innovation, and accelerate the changes you want to see in KPIs, make the evaluation based on a set of well-defined parameters, and project future revenue.

Every organization is different, every innovation initiative is also unique, every industry is different, investors are also different, there is no one size fits all formula to invest. The value-based investment needs to be driven by concepts like accelerated innovation, collaborative value or collective advantage and multi-layer ROIs, open up new channels of revenue and monetization for solving complex problems and advancing human society.

 

 

 

 

 

 


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