Thursday, October 27, 2022

Initiativesofinvestment

The best point of view is to perceive investment as structural management activities, capable of delivering multifaceted business value.

Every organization is different, every investment initiative is also unique, there is no one size fits all formula to invest. Good investment approaches help their businesses open up new channels of revenue and monetization within the enterprise, their ecosystem, and the industry. 

The objective of business investment oversight is to provide visibility of the business initiatives that are supporting the company's strategy and expediting business growth and transformative changes.
 

You should spend to make a return; invest to generate differentiated business value: The focus point should shift to assess whether the business improvement is the right investment to be done in the first place, which business investment would provide the greatest return; and which should be invested in the future. The evaluation needs to be based on financial metrics and projections for future revenues, cash flows, and return on investment, etc.

 Make sure the investment management first understands what it needs to drive future business growth and improve capital flow. The logical investment scenario helps to assess whether the business models associated with emerging trends is the right investment to be done in the first place, and ensure the expected return on investment. Make sure the # financial investment of the business initiatives are aligned with at least one strategic objective over the total portfolio.

It's also important to show the clear business goals of the investment with critical elements such as returns and risk assessment.
The Return On Investment value proposition should be an overall measurement based on the combination of cost, schedule, quality, performance, and satisfaction of varying stakeholders. But to take the step further, understanding the satisfaction of customers, stakeholders is what allows the measurement of multidimensional values investment can bring up to the business.

 Identify related risk issues about investment, The risk assessment and management process helps investment management prioritize the activities they are committed to resourcing. What are the best methods for calculating ROI? How to accurately project the economic impact and multifaceted value of the proposed initiatives. It’s important to align resources and talent scientifically, go beyond short-term gain, take a calculated risk and make a long-term investment. So organizations have a better opportunity to shift from surviving to thriving mode.

It’s important to continue to make an objective assessment of the investment portfolio: The business ecosystem is full of complexity and uncertainty, it’s important to understand that there are both opportunities and risks in every investment. usually return on investment and risks are proportional. The best judgment or a qualitative approach is given for assessing the investment portfolio. When people speak about making an investment for generating new revenue, visibility into each investment is established to provide ongoing investment health information as well as enable understanding overall portfolio health. 

There are both opportunities and risks for every investment. The insightful management needs to check up: Are the investment portfolio diversified? What investments, or even portfolios, should you direct more assets to? What, and where, are there talent gaps? What is the relative health (risk, value, strategic importance) of the portfolios? How to improve the overall effectiveness and maturity of an investment portfolio.

The business ecosystem is full of opportunities and risks. The best point of view is to perceive investment as structural management activities, capable of delivering multifaceted business value. The success of investment is usually based on how to align resources, talent, processes to enable business growth, and play the number game wisely to demystify the puzzle of investment.

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