Are you a CEO? If so, growing revenues is one of your two priorities, the other being growing profits. If you are not a CEO, then you are working for your CEO to help accomplish one of those objectives.
So, if your CEO wants to grow the company’s top-line, and if you are an IT Line Manager or Executive, your responsibility is to put together the necessary IT Infrastructure to help accomplish that goal.
There are only three ways to grow your company’s top-line:
Increase No# of Customers
Increase Transaction Size ($$)
Make Customers to buy frequently
No# Of Customers X Purchase Frequency X Avg. Purchase Price = REVENUE
The above three metrics are the business end-goals. But you cannot directly influence the number of customers you have or their transaction sizes or their frequency of purchases. You need certain “Business Drivers” that you can directly influence to reach those end-goals.
Typically, you have two Business Drivers at your disposal:
Execute better than your Competitors
Be early to spot new opportunities
Depending upon the Industry you operate in, the type of products and services you offer, your market leadership position and the market maturity, your business strategy to grow revenue could vary. And, IT should play a very important role in your strategy. Look at the below pyramid. All business activities in your organization typically fall under any of the three layers.
The ‘Operational’ and ‘Tactical’ layers of the above pyramid correspond to the 1st business driver – to achieve operational excellence in order to execute better than your competitors. And, the ‘strategic’ layer corresponds to the 2nd business driver – to spot emerging opportunities and funnel it back to the bottom two layers to push the organization forward. With the 2nd business driver, you can run experiments to identify business break-thrus that can help you offer atleast 10X Value Proposition over your competitors.
So, where does your business driver lie in the above stack? Do you have the ‘right’ IT Infrastructure that include the right set of products, services and solutions to activate those drivers?
Information Technology (IT) is increasingly becoming Business Technology (BT), and the IT Executives are increasingly becoming Chief Innovation Officers, taking more active role in driving the top-line growth for their organizations. TCO is starting to go out of IT; ROI, NPV, Economic Value Add is coming back in.
Solutions that can significantly contribute to your top-line growth are,
Procure Cutting-edge IT Products
But where will you start with?
You can take an incremental approach to develop your IT Infrastructure, Or, Rip your current Infrastructure and replace with a better one
Both approaches has its own pros and cons, and only when you put it in a business context would you be able to arrive at the right decision.
To develop and execute on a business strategy using the power of technology is indeed a challenge. ENTERPRISE IT has been offering technology Consulting, Solutions, Products and Services across operational, tactical and strategic layers to help grow several organizations, both large and small.