Investing in Innovation or Optimizing Operations

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When deciding whether to invest in innovation or optimize operations, it is crucial to assess the company’s specific needs. Investing in innovation without first optimizing operations can result in significant revenue and productivity losses. Additionally, department heads are likely to compete for investment in their areas, making it essential to adopt a data-driven approach. Involving both department heads in the process ensures transparency, allowing them to review the data and participate in the decision-making process. This collaborative approach helps determine the most beneficial allocation of resources and ensure cross-functional buy-in.

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