Return on Investment should be expanded into a broader perspective which usually cannot be measured fully in time and dollars.
It’s important to understand the multipath logic underneath, do return on investment analysis, clarify the multifaceted value it projects to create
Cost-benefit analytic logic of business investment: The management needs to enhance investment-strategic alignment by clarifying: What investments, or portfolios should you direct more assets to? Are they diversified? Each organization has specific, measurable goals and objectives they have to hit through investing. Return on investment is a ratio, a percentage of the dollar amount your company gains from investment efforts over what it initially spent in simple terms,
Great investors make an objective assessment of their investment portfolio for getting high ROIs. The cost-benefit analysis simply compares a project's cost to its anticipated financial benefit. It helps an organization assess if the business initiatives with associated technology or other future oriented perspectives is the right investment to be doing in the first place, for ensuring the expected return. Technically, to capture emerging business trends and make wise investment, develop predictive models and identify leading indicators to forecast business and staffing requirements.
Interdisciplinary logic of investment: There are different variables in investment related decision-making. Evaluate each of the variables from the perspective of current value or projected value. If cost benefit analysis is a sort of linear logic. Then in reality, to assess the multifaceted value (beyond economical value) of investment more objectively, it’s critical to clarify the nonlinear logic as the very clue hidden in varying circumstances across disciplinary domains horizontally for making wise investment. That requires an in-depth understanding of the business models, customers, and the markets the business operates in, understanding of the competitive landscape, keeping a medium/long term investment and performance horizon in mind.
Return on Investment should be expanded into a broader perspective which usually cannot be measured fully in time and dollars such as employee satisfaction, creativity, teamwork or culture evolution, etc. Interdisciplinary logic enables management to figure out what are the best methods for calculating ROI by raising questions, thinking outside the box, having a strategic understanding of the “to be” state of the company and holistic understanding of “as is” state of the organization. Insightful managers are able to review investment progress, deviations, and make more effective decisions for improving the overall investment management maturity.
Integration logic of portfolio investment: Business portfolio management is the foundation to build a set of organizational capabilities to enable strategy management. The management needs to make an objective assessment of the investment portfolio relative health status (risk, value, strategic importance) of each of the portfolios by prioritizing right and linking the business strategy to investment goals or business benefit. Besides financial results, it’s also important to leverage integration logic for evaluating the overall business value of a portfolio from investment perspectives, such as quality, stakeholders satisfaction, cultural impact, societal value, etc.
There are different types of investment portfolios, each with a different purpose and function. You integrate when a justification can be made for doing so. It’s crucial to clarify logic underneath by doing analysis of total cost, total value, and total impact to them, truly facilitating meaningful dialogues, enabling better, faster decision making and effective portfolio management to ensure that the strategy potential is achieved solidly. It’s about investing money, resources, talent effectively in achieving high ROI, and getting higher than expected performance results.
The business ecosystem is full of opportunities and risks. The success of investment is usually based on how to solve certain problems, enable business growth, play the number game wisely to demystify the puzzle of investment. The Return On Investment value proposition should be an overall assessment based on the combination of cost, schedule, quality, performance, and satisfaction of the customer, and stakeholders.
Great investors make an objective assessment of their investment portfolio for getting high ROIs. The cost-benefit analysis simply compares a project's cost to its anticipated financial benefit. It helps an organization assess if the business initiatives with associated technology or other future oriented perspectives is the right investment to be doing in the first place, for ensuring the expected return. Technically, to capture emerging business trends and make wise investment, develop predictive models and identify leading indicators to forecast business and staffing requirements.
Interdisciplinary logic of investment: There are different variables in investment related decision-making. Evaluate each of the variables from the perspective of current value or projected value. If cost benefit analysis is a sort of linear logic. Then in reality, to assess the multifaceted value (beyond economical value) of investment more objectively, it’s critical to clarify the nonlinear logic as the very clue hidden in varying circumstances across disciplinary domains horizontally for making wise investment. That requires an in-depth understanding of the business models, customers, and the markets the business operates in, understanding of the competitive landscape, keeping a medium/long term investment and performance horizon in mind.
Return on Investment should be expanded into a broader perspective which usually cannot be measured fully in time and dollars such as employee satisfaction, creativity, teamwork or culture evolution, etc. Interdisciplinary logic enables management to figure out what are the best methods for calculating ROI by raising questions, thinking outside the box, having a strategic understanding of the “to be” state of the company and holistic understanding of “as is” state of the organization. Insightful managers are able to review investment progress, deviations, and make more effective decisions for improving the overall investment management maturity.
There are different types of investment portfolios, each with a different purpose and function. You integrate when a justification can be made for doing so. It’s crucial to clarify logic underneath by doing analysis of total cost, total value, and total impact to them, truly facilitating meaningful dialogues, enabling better, faster decision making and effective portfolio management to ensure that the strategy potential is achieved solidly. It’s about investing money, resources, talent effectively in achieving high ROI, and getting higher than expected performance results.
The business ecosystem is full of opportunities and risks. The success of investment is usually based on how to solve certain problems, enable business growth, play the number game wisely to demystify the puzzle of investment. The Return On Investment value proposition should be an overall assessment based on the combination of cost, schedule, quality, performance, and satisfaction of the customer, and stakeholders.
0 comments:
Post a Comment