Chasing Digital

CHAPTER 7Investment management

It’s not because things are difficult that we dare not venture. It’s because we dare not venture that they are difficult.

Seneca

 

According to KPMG, since 2010 there has been a steady rise in venture capital money invested globally, from US$10 billion in the first quarter of 2010 to US$39.4 billion in the third quarter of 2017 — a compound annual growth rate of 21.6 per cent. Unfortunately, this capital has made its way to anywhere but the pre-digital incumbent. No doubt you’ve seen how a fledgling start-up can raise $1 million in a few weeks with a glossy-looking pitch deck and a few handshakes. For a similar project to be approved within a pre-digital incumbent, it could take months of waiting for the ‘right’ moment in a budget cycle, numerous meetings, endless documentation and an abundance of stakeholders to manage, most of whom may not understand your proposition. In other words, it’s an uphill battle to secure funds within an existing business unit.

There’s no two ways about it: you need capital to execute on some or all of the recommendations set out in this book. Investments in data, platforms or systems of intelligence can be significant. Staying relevant in the face of digital disruption requires speed and agility, and without the right investment mentality and processes in place, you’ll find yourself stymied as opportunity slips right past.

In this chapter, we introduce an investment management mindset designed to help you make quick ...