Selecting the best opportunities to capture seems to be a straight-forward resource allocationResource allocation problem. Because money, people and time resources are always scarce, most firms want to use them for their most promising projects. This logic has led many leadership teams to wrongly apply the same analytical frameworksAnalytical frameworks they would use to evaluate any other capital project, like investing in a new IT system, plant or office building. These tools tell them to select only the few opportunities that promise to generate more economic value than other investments, with the usual adjustments for riskiness and time.

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Deciding Which Opportunities to Capture

  • George S. Day

摘要

Selecting the best opportunities to capture seems to be a straight-forward resource allocationResource allocation problem. Because money, people and time resources are always scarce, most firms want to use them for their most promising projects. This logic has led many leadership teams to wrongly apply the same analytical frameworksAnalytical frameworks they would use to evaluate any other capital project, like investing in a new IT system, plant or office building. These tools tell them to select only the few opportunities that promise to generate more economic value than other investments, with the usual adjustments for riskiness and time.