What is the Purpose of an Investment Management System?

An investment management system is a plan of action undertaken by an organization to ensure that its infrastructure and other allied assets are employed to deliver a desired standard of service. Such investment management systems are usually employed where the available assets are co-dependent in nature and are as such meant to work cohesively for the achievement of optimal results.

Purpose

The main purpose of an investment management system is to clarify how a given standard of service will be given with the use of designated assets in a manner that is both justifiable and optimal. The term ‘optima’ attempts to describe a scenario where a superior standard of service can be best achieved at a minimal overall cost. Justifiably, on the other hand, has to do with a full presentation of all the costs and benefits for scrutiny purposes so as to gauge the effectiveness and efficiency.

Basics

An organization undertakes an investment management system to have a workable system that looks into the three main aspects of investment management system: maintenance, upgrading and operation. Once the framework for these three tasks is set, it becomes easier for an organization to fully understand the nature of its capital assets and respective values. An organization also becomes better placed to make sound investment decisions.

Planning

One of the most relevant purposes of an investment management system is to help an organization make informed planning decisions. A sound investment management system gives a useful framework that helps measure overall performance and gives vital information to help in internal short and long term planning.

Benefits

An investment management system is successful when the desired standard of service translates into measurable benefits that can be monetary, social or environmental. While it might be hard to quantify some of these benefits, it is important to give some kind of assessment that will indicate if the investment management system is worth the ongoing costs with respect to the benefits accrued.