Making decisions by allocating financial
resources to the areas of highest return on investment, not necessarily the highest profit, was
revealed superior way to use financial capital for strategic success. Marketing is similar.
Customer segmentation, for example, is a 20th-century development, and allowed organizations
to allocate their resources not just equally to all customers, or to the customers with the highest
sales, but rather to the customers with the greatest impact on the organization’s competitive
success.
Thus, finance creates organizational value by enhancing decisions th