Last week, large numbers of octopuses appeared along the UK coastline — an unusual event. They were probably following prey that had moved west from warmer southern waters. As UK seas warm, they offer octopuses a richer source of food.
Companies, too, must continually find new sources of "food" to survive in a changing world. Existing revenue streams inevitably weaken over time, eventually creating a gap between actual revenue and business targets. This is normal — and predictable if you understand your market and business. Before a revenue stream begins to decline, you must decide whether to phase it out or renew it through new offerings, production methods or distribution channels. If the market no longer offers potential, phase it out and create or acquire a new revenue stream. In most cases, however, the existing stream can be renewed incrementally. How does that work?
First, calculate the expected revenue gap over several years against the targets set by the funder. Once you know the required revenue and margin, you can determine how much you can invest in creating new revenue. You can then define an investment programme and a delivery roadmap with clear deadlines. Achieving the target may require dozens — or even hundreds — of projects, but that is execution. The roadmap is what matters most: always deliver on time.
In this model, the business defines the roadmap of launches and technology delivers the solutions. Technology here includes the entire ecosystem. A roadmap for New Revenue Creation should be seen in this concept as an internal and external contract.