Thursday, June 23, 2022

Investmentcrossdisicplinarily

Venture investment is an interdisciplinary pursuit and cross domain effort.

In face of rapid change and fierce competition, the success of investment is usually based on how they enable business growth and support the business objectives by delivering customized solutions in time to the market perspective. Investment is art, science, and philosophy, and put emphasis on investing in people-centric innovation. 

Great investors advocate innovative mindset, fresh ideas, entrepreneurship or intrapreneurship activities, strike the right balance of short-term gain and long-term perspective. Insightful investment managers not only invest in excellent business models, more importantly, but they also invest in top talented people, how to unleash their potential, create new businesses and advance human society.

Science of investment: Venture investment is a complex business activity. The investment management needs to ensure that they are investing in the right business initiatives by taking a scientific approach, creating headroom for innovation and business growth. The investment managers will be able to quickly learn and build on the idealization work of others, clarify investment goals, craft a good strategy by doing in-depth analysis of opportunity, risks, and calculate return on investment with a certain level of accuracy.

Scientifically speaking, the logical return on investment analysis helps an organization assess if the emerging business models or other innovation initiatives with associated technology or other creative perspective is the right investment to be doing in the first place, to ensure the expected return. Technically, develop predictive models and identify leading indicators to forecast business and staffing requirements, track skills and performance, enforce resource management, optimize cost, and maximize the human capital investment.

Art of investment: Business investment is a sophisticated activity that requires the art of vision and communication. Both data and gut feeling are important. Good investors ask thought-provoking questions to embrace great feedback and diverse perspectives, stimulate imagination and inspire creativity. In fact, a great investor is the one who often has all great questions but not all answers. Inquisitiveness is one of crucial qualities of insightful investors to show intellectual curiosity, critical thinking skills, and strong logical reasoning skills.

Great investors are innovators themselves, it’s actually necessary to have a certain degree of chaos to break down some old rules or outdated processes for investing innovation with the free spirit. Some innovation investors leverage the Socratic Method to ask a series of questions, encourage idea exchange and bring collective insight into the issue at hand, spark imagination, stimulate creative energy. They perfect the art of innovation investment by listening, inquiring, advocating fresh ideas, designing competitive landscapes, lubricating professional relationships, building alliances, balancing the needs and wants of varying stakeholders, etc.

Philosophy of investment:
Fundamentally, all innovation efforts lead to discovering truth and making progression. It is important to bring the philosophical perspective to deepen understanding of the investment portfolio, explore the purpose of running a new business, clarify the very goal to take an innovation initiative. Philosophy comprises logic, aesthetics, ethics, metaphysics, ontology, and epistemology, all of which are perhaps important lenses to understand fresh ideas, scrutinize business models, and improve investment decision effectiveness.

Philosophy has the influence of generating “big ideas” or looking deeper into breakthrough innovation. We are encouraged to look for an experience of truth, the unfolding of wisdom by those who have gone beyond traditional thinking and conventional wisdom. Philosophy is methodical and has deliberate processes for raising questions, identifying faulty reasoning, or thinking outside the box for either generating or examining great ideas. That is the philosophical perspective of innovation investment.

Venture investment is an interdisciplinary pursuit and cross domain effort. There are different variables in investment related decision-making. Evaluate each of the variables from the perspective of current value or projected value. All investments and meaningful business activities should strive to build tangible business capabilities for achieving ultimate business goals, overcoming common challenges or advancing human societies.






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