How to Better Manage Strategic Investment

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How to Better Manage Strategic Investment

There IS a better way for your company to manage its investments and PACE’s new eBook, “How to Better Manage Strategic Investment Using the Profitability Analytics Framework” shows you how.

Some topics and key concepts in this eBook include:

• Investment strategy in an internal decision-support context must consider both tangible and intangible investments. Four categories of intangible investments are discussed along with examples on how to include them in the investment management process.
• In the strategy validation phase, it is creation of causal quantitative models of the organization’s resources and processes is key. These models can be used to validate the strategic plan and the possible scenarios in developing the final strategic plan quantitatively and then later provide insight into the execution of strategy in the face of economic reality.
• Investment modeling should be done in two parts: a quantitative operational model and a monetized financial model.
• The emphasis of monetary modeling should be on economic reality and long-term profitability versus profit as defined by accounting standards.
• ?Only those investments required to preserve the resources consumed in operating the organization at its current level of business should be treated as expenses and incorporated into the measurement of product and service cost.

Click here to download the eBook (free)

Thank You to Our Sponsor

We would like to thank for sponsoring this document and supporting the?We would like to thank?Huron?for sponsoring this document and supporting the Profitability Analytics Center of Excellence. Sponsorships enable PACE, a non-profit organization, to continue researching, writing, and publishing articles and eBooks. All of our content is free to use and all members of PACE are volunteers.

Articles Related to this Topic

• Don't Ignore the Investment
• Expenses vs. Investments Intangible Investments: A Pathway to Profitability and Growth
• Estimating the Return on Investment (ROI) from Activity-Based Costing (ABC)
• Digital Assets and Customer Data: How to Evaluate Them as Fixed Assets
• Measuring Customer Profitability

Podcasts and Webcasts Related to this Topic

• Intangible Investments: An Important Pathway to Profitability and Growth?Spotify Apple Google YouTube
• Resources, Activities, and Improving Profitability? Spotify Apple Google YouTube

Case Studies Related to this Topic

• Building Internet Fiber Network Services and Capturing Investment Value??
• LePetomane Gas??
• Plastic Film Extrusion, Inc.??

The Profitability Analytics Center of Excellence (PACE) is a?non-profit community of volunteer professionals?dedicated to helping organizations make better, more informed business decisions through the use of data analytics employing integrated, causal models.?Focusing exclusively on how to enable better managerial decision-making within organizations through the use of such models, PACE is the go-to source for people looking for independent and impartial (vendor and methodology neutral) information in this area. Find many more articles at?www.profitability-analytics.org?.