Investmentplatform

The effective investment frameworks add value as they help the management make objective investment portfolio assessment.

Running a business is fundamentally about solving societal problems with continuum. The investment management needs to ensure that they are investing in the right business initiatives and create headroom for innovation, growth, and progression. It’s also important to understand that there are both opportunities and risks in every investment. 

An investment value platform provides a structure to justify critical business investments, broadens perspectives with important components, avoids pitfalls, helps the practices deliver consistent results and achieve repeatability of the outcome, improves the management effectiveness on the basis of business benefit delivery, return on investment and contribution to innovation.

Investment strategy: Innovation is the path for building competitive differentiation and driving transformative progress. It’s crucial to evaluate the impacts of investment decisions by presenting a "strategic" look to maximize the business's benefit from the investment. An effective investment platform can provide visibility into each investment, provide ongoing investment health information as well as enable understanding overall portfolio health.

The wise investors analyze business models that list all of the sources of value, cost, and risk, and contain formulas to interconnect them. In fact, achieving visibility of strategic investment helps investment management become more future-oriented and discover the path to where they need to move for investing innovation with growth potentiality and progressive societal impact. It generates predictions for how much profit the new business model will make, as well as how to strike the right balance of short term gain and long term perspectives.

Investment principles: The investment principle is usually based on value and strategy. In fact, principle, purpose, and progress are inter-related with each other. Purpose and principle clearly understood, articulated, and commonly shared, are the genetic code of investment management. The guiding principle is like the light tower, navigates crucial business activities such as investment toward the right direction and harness innovation in a structural way. If shareholders valued innovation more, more often than not, they would value companies that devote more talent, resources toward future innovation than those that optimize short term profits.

It’s not easy for a set of innovation principles that can be applied holistically as various stakeholders have different viewpoints about innovation investment. Sometimes the principal content contains natural conflict, without a method of prioritizing and implementing consistently, they become a source of contention. By following the digital principles and rules, the investment lifecycle could be viewed as resulting in emergent means of reorganizing, refocusing, rebalancing resources, and redirecting people to improve innovation effectiveness to ultimately achieve higher than expected results.

Investment resource management: Resources are limited, there are different types of resources such as funds, physical assets, people, information, reputation, resources of the individuals who comprise the firm, such as knowledge, education, training, insights, experience, etc. Often resource management becomes a bottleneck in innovation investment and management.

Successful capacity planning and resource management are critical to ensure that resources are available before they are needed. If a solid business case can be developed, the resources are often made available; An effective resource allocation scenario helps to get all related people involved, set priorities, take advantage of resources effectively, optimize cost, and keep the process transparent in order to improve innovation investment success.

Investment risk management: Managing strategic risks effectively can do more than just help a company avoid potential downsides. The management can ask good questions, do pre-work for risk assessment in the correct manner. Identify risk issues related if the initiatives cannot be easily accepted by staff about cash flow from the corporate capacity or level of trust with suppliers to provide the service. This will require that each organization believes or create its own risk matrix.

The risk assessment and management process helps investment management prioritize the activities they are committed to resourcing in addition to serving as a cross check for anything that they may have missed or are doubling up on. It’s important to integrate risk into resource prioritization and planning processes.

Investment performance checklist: For many investing managers, they need to be able to support essential initiatives with sound ROI reasoning by clarifying: Why should we invest in what you are proposing? What are the best methods for calculating ROI? How to accurately project the economic impact of the proposed innovation initiatives. ROI, Net present value, internal rate of return, and time to payback are all measurement methods. It’s important to define measures appropriate to best assess the performance; showing how well they satisfy or delight customers and generate business value.

A cost-benefit analysis simply compares an initiative cost to its anticipated financial benefit. In specific, make an objective assessment of the size, or the cost - not only the amount but the flow at the time of disbursement. Size of profit - not only the amount but the flow at the time or the cost if you do not do it, such as meeting regulatory actions. The time to complete the Implementation (post-training and post-adjustment period) Time to reach equilibrium (cost = benefit) Each organization has specific measurable goals and objectives they have to hit through investing in innovation initiatives.

The effective investment frameworks add value as they help the management make objective investment portfolio assessment including techniques such as pure health check techniques, customer feedback, business partner relationship analysis, etc, and provides a holistic picture of what is working or not. The comparisons help to review investment progress, deviations, and make more effective decisions for improving the overall investment management maturity.

Posted in: Digital Frameworks