on April 21, 2020 in Investment Governance

Two Ways an Investment Library Can Help Your Business

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Business leaders at large corporations often struggle to access and apply learnings from past investment decisions to new project proposals. Inconsistent record keeping and filing systems spread across both on and offline platforms only exacerbate the problem. Transitioning investment files to a digitized and standardized platform drives significant value for your business. Here are two great reasons to build a digital library of investments for your company.

1. Effective Planning

A digitized and standardized library of previous, ongoing and proposed investments is fundamental to the planning process. When considering budget guidance for a typical annual planning period, it is very important to understand budget impact from carryover projects from prior periods. Also, it can often be very helpful to have easy access to real time benefits realization analytics on projects completed in prior periods that are now in their value periods. A standard approach to taxonomy and metrics for data collection and analysis puts the power of this information at decision makers’ fingertips. Creating a standardized framework for a library of investments can provide a phenomenal resource that can power more effective investment governance and greatly improve return on capital deployed.

2. Portfolio Optimization and Re-Balancing

A curated investment library makes it easy to get a wide-angle perspective and gauge the impact of various initiatives and projects as they move through time and are affected by changes in the business climate. When investments are captured in a standard format and stored in a digital library, more precision can be brought to ongoing portfolio optimization and re-balancing. Richer information enables advanced, real-time actionable analytics that, for example, can identify period specific, discretionary, non-committed costs that can be eliminated in a re-balancing scenario targeting expense compression.

Moving forward, all decisions and strategies should be informed with the knowledge and insight gleaned from a standardized, robust library that always reflects the current state of projects within the company in real time. An end-to-end digital platform like Inpensa provides an out-of-the-box framework to define an extensible library of standards combined with powerful analytics capabilities so you can get the most out of your investment library.

The Takeaway

Your digital investment library can be a tremendous benefit for your organization by helping management focus on initiatives that can be successfully executed to deliver value to the organization and its customers. This information can be used to develop more effective strategies and inform better business decisions.

A digitized and standardized library of investments is a resource that brings alignment and clarity to medium and large publicly-traded as well as private companies, by allowing managers to review past projects and apply best practices and lessons learned to future business opportunities. Try Inpensa’s business case solution to see how you can drive better decisions for your team and better outcomes for your business.

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