Published: 02 May 2023
When technology innovation investments are measured by financial outcomes, they act like other financial investments. By applying the key principles of value investing, technology innovation leaders can achieve long-term business success and avoid the pitfalls of short-term metrics and strategies.
Technology investments driven by emotions, such as fear of missing out (FOMO), instead of rational decisions often lead to failure. This emotion-driven investing behavior is referred to as the “Mr. Market” phenomenon.
While technology innovation leaders invest in technologies to solve business problems and stay competitive, these new technologies might not always fit the organization’s strategy.
Technology innovation investments are usually measured by short-term metrics, which may cause the loss of long-term opportunity.
Value investing is not a panacea. It has its own limitations as a risk-averse, conservative strategy.
To prioritize technology investments, technology innovation leaders should:
Create their own strategy
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