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Digital Investments Across All of the Efficiency Metrics
In order to understand the concept of digital investments, one must first define what digital investments are? Digital Investments: The Need for Speed, Efficiency and Innovation. seventy-one percent of all CEOs plan to boost investment in digital technologies, but only about five percent of those same CEOs are spending that money on new ventures instead of upgrading existing business models.
Digital Investments is required if you want to stay ahead of your competitors and achieve your corporate objectives. These investments can be in research and development, new product development, services and support, and strategic alliances. All these require investments in new and effective technologies – especially in the fast-moving sectors of cloud and social. Digital Investments is therefore an essential way of ensuring that you maintain a competitive edge.
How do we determine the worth of a particular investment? First, we must determine the value of a particular investment. Our definition of business success will involve the evaluation of the return on investments (ROI) and the cost of capital. Achieving your business success depends on finding the right mix of investments for achieving your goals. Here are some of the areas where we see digital investments regularly make strategic sense:
Research and Development:
Investing in the r&d lets you tap into the best talent and technology available to you. It allows you to differentiate yourself from your competition. In addition, it lets you create cutting-edge innovations and put your business at the forefront of emerging markets. Making digital investments in the r&d also provides a huge amount of long-term value. So, before you invest, make sure you have carefully weighed your strategic objectives, identified the best possible return, and analyzed your target market. Invest in the next steps.
Customer Access and Efficient Customer Service:
Investing in customer support and access can often provide substantial long-term benefits. For example, an investment in an IT department may provide instant benefits once you improve employee productivity. The most successful digital investments in customer service can often pay for themselves within the first year. However, an investment in another element, such as training, might require more resources for the short-term. Invest in the next steps.
Strategic Innovation and Business Strategy:
Investing in strategic innovation makes great sense if you plan to remain competitive in your market or industry. Investing in innovations that give you an edge over your competitors can make a tremendous difference to the long-term value of your business success. Additionally, it builds long-term value by improving processes or implementing better methods. When you invest in these types of digital investments, think about the next steps.
Digital Investments across all of these elements can deliver strategic and tangible benefits to your business success. Digital investments across the board have tremendous value. However, you should also think about how you plan to manage the return on your investments. For example, do you plan to use these investments to simply reduce overhead expenses? Or, are you hoping to build a strategic advantage with digital transformation so that your company can become a leader in the market or industry?
Digital investments across all three elements of the business model can deliver significant ROI. However, each of these elements requires careful planning and management. Only then can your digital investments be effective. Consider your current ROI in your organization and ask your management team what type of ROI they think they can achieve with your current investment strategy.