Is a company’s resistance to invest in longer term innovation endeavors setting them up for an eventual fall?
Ironically this aversion to longer term investment is especially prevalent on the business side of tech companies, the exact people who you would think openly embrace deep well thought out innovation investments. The countering force is their desire to gain investor validation (private or public capital) and thus are focused on presenting favorable short-term KIPS (return on net assets, return on invested capital, and internal rate of return) as proof that they’re using existing capital efficiently, writes to @IlanMochari. Ideally you want to balance both, so whats the solution? Ilan found a potential one from Alan Michael Kane, the cofounder of Phunware a developer of mobile applications. He argues that we need to look at overall revenues, over time. This works because, “…innovation is not merely the creation of new products and services; it’s the creation of new products and services that your existing or prospective customers are eager to pay for.” says Ilan.
This was just one issue. Read the full article then let me know what you think?