Strategic Asset Investments

Strategic Asset Investments

Jul 5, 2018 Business, Finance by admin

The Global CIO Survey reports that 57% of technology is used to support fundamental business operations, while only 26% of the spending focuses on needed business changes.  A mere 16% supports innovations that will power the business into a successful future.  In a world where technology has become a critical component of business operations, technology is a key differentiator and an enabler of success.  At Spur we invest in companies creating the innovative and disruptive technologies of the future that offer clear and sustainable competitive advantages that will drive their growth.

Successful businesses optimize value by adopting a portfolio approach to technology investments by using a strategy similar to a stock portfolio.  Some high risk investments may deliver outstanding but risky results, while other more conservative investments are likely to lag behind but give consistent results.  Spur measures the performance of technology investments in terms of value, risk, and reward delivering the best ROI.

Focus investment on assets and technologies that enable specific business goals such as revenue growth, efficiencies or  improving market share.  A spending balance across innovation, growth, productivity and maintenance coupled with a mix of targeted investments based on business objectives, time constraints and risks will yield an excellent outcome.  A multi-year strategic technology investment plan that allows for growth, change, and improvement. It is easier to identify technologies that help specific initiatives when there is an overarching vision to provide clarity.

Some key questions to consider:

Are there opportunities for growth or significant improvements in certain functional areas?

How new technologies create a competitive advantage?

Are there any new business risks requiring technology investments that can’t be ignored?

Which investments will either grow revenue, improve profits, or reduce risks the most?

As technology becomes even more pervasive, long-term investments make the difference between being a thriving vs. static business. The key is to reach management consensus with a realistic view of the benefits, costs and impacts for each investment decision. Yet just writing a big check is not enough.  Technology investments must also be strategic–and at the same time focused on the most important competitive initiatives–so they deliver the expected impact on the bottom line.

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