Visibility into each investment is established to provide ongoing reliable investment information as well as enable the management to understand the overall portfolio health and effectiveness.
A balanced scorecard is necessary to practice holistic performance management in a structural way, allowing the most effective investment initiatives to be planned for achieving corporate goals, generating multifaceted business values.
Profitability: Every organization is different, every business initiative is also unique, there is no one size fits all formula to invest. The logical investment scenario helps an organization assess whether the new business model or initiative is the right investment to be done in the first place, and ensure the expected return on investment. Organizations have limited resources, the investment management needs to ensure that they are investing in the right business initiatives, create headroom for innovation and business growth, to reap high profitability. It’s about spending the money right, and getting the right results.
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. The wise investors collect sufficient information, leverage appropriate technologies to generate valuable insights, for predictions on how much profit the business will make, as well as how to strike the right balance of short term gain and long term perspectives, open up new channels of revenue and monetization within the enterprise, their ecosystem, and the industry. Return on Investment tells the business management how well organizational innovation investment repays the company, focusing on benefits generation.
Resource: Organizations have limited resources, many businesses took a big bite of resources to keep the lights on, only leaving very little for catalyzing innovation. The wise investors analyze business models that list all of the sources of value, cost, and risk, and contain formulas to interconnect them, for making effective investment decisions. 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? What investments, or even portfolios, should you direct more assets to? Are they diversified? What investments, or even portfolios, should be diminished? What, and where, are there resource gaps?
Business resources include technological, financial, reputational, market structure and institutional capitals and assets. The wise investors analyze business models that list all of the sources of value, cost, risk, and contain formulas to interconnect them, discover the path to where they need to move for investing innovation with growth potentiality and progressive societal impact. Checkup borrowing capacity, liquidity, ability to raise equity capital, and sustainable growth. Oversee resources of the individuals who comprise the firm (knowledge, education, training, insights, etc.). Review the organizational capital with aggregate attributes of those who comprise the company such as loyalty, teamwork, reputation, product innovation, process innovation, speed, etc. Checking up resources and achieving visibility of strategic investment helps investment management become more future-oriented.
Risk assessment: There are both opportunities and risks for every investment. High return implies high risks. A cost-benefit analysis 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. The risk assessment 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.
Wise investors make objective assessments of a variety of enterprise risks. Strategic risk is associated with specific long term goals or objectives; it is broader involving many unknowns and unknowable because it is about the future. Systemic Risks are risks external to the organization, such as political or geographical environment, industry, etc. Operational risks could be the risks that are related to daily business activities, etc. Great investors make an objective assessment of their investment portfolio for getting high ROIs; continually evaluating individuals and aggregate investments in terms of value, risk, and reward, for building a cohesive business capability portfolio.
There are both opportunities and risks for every investment. The investment assessment includes things such as resources consumption, growing tendencies, cost-benefit analysis of business capability development, etc. Visibility into each investment is established to provide ongoing reliable investment information as well as enable the management to understand the overall portfolio health and effectiveness.
Profitability: Every organization is different, every business initiative is also unique, there is no one size fits all formula to invest. The logical investment scenario helps an organization assess whether the new business model or initiative is the right investment to be done in the first place, and ensure the expected return on investment. Organizations have limited resources, the investment management needs to ensure that they are investing in the right business initiatives, create headroom for innovation and business growth, to reap high profitability. It’s about spending the money right, and getting the right results.
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. The wise investors collect sufficient information, leverage appropriate technologies to generate valuable insights, for predictions on how much profit the business will make, as well as how to strike the right balance of short term gain and long term perspectives, open up new channels of revenue and monetization within the enterprise, their ecosystem, and the industry. Return on Investment tells the business management how well organizational innovation investment repays the company, focusing on benefits generation.
Resource: Organizations have limited resources, many businesses took a big bite of resources to keep the lights on, only leaving very little for catalyzing innovation. The wise investors analyze business models that list all of the sources of value, cost, and risk, and contain formulas to interconnect them, for making effective investment decisions. 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? What investments, or even portfolios, should you direct more assets to? Are they diversified? What investments, or even portfolios, should be diminished? What, and where, are there resource gaps?
Business resources include technological, financial, reputational, market structure and institutional capitals and assets. The wise investors analyze business models that list all of the sources of value, cost, risk, and contain formulas to interconnect them, discover the path to where they need to move for investing innovation with growth potentiality and progressive societal impact. Checkup borrowing capacity, liquidity, ability to raise equity capital, and sustainable growth. Oversee resources of the individuals who comprise the firm (knowledge, education, training, insights, etc.). Review the organizational capital with aggregate attributes of those who comprise the company such as loyalty, teamwork, reputation, product innovation, process innovation, speed, etc. Checking up resources and achieving visibility of strategic investment helps investment management become more future-oriented.
Risk assessment: There are both opportunities and risks for every investment. High return implies high risks. A cost-benefit analysis 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. The risk assessment 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.
Wise investors make objective assessments of a variety of enterprise risks. Strategic risk is associated with specific long term goals or objectives; it is broader involving many unknowns and unknowable because it is about the future. Systemic Risks are risks external to the organization, such as political or geographical environment, industry, etc. Operational risks could be the risks that are related to daily business activities, etc. Great investors make an objective assessment of their investment portfolio for getting high ROIs; continually evaluating individuals and aggregate investments in terms of value, risk, and reward, for building a cohesive business capability portfolio.
There are both opportunities and risks for every investment. The investment assessment includes things such as resources consumption, growing tendencies, cost-benefit analysis of business capability development, etc. Visibility into each investment is established to provide ongoing reliable investment information as well as enable the management to understand the overall portfolio health and effectiveness.
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