What's Next? How to find future growth
When everyone in your organization is working full out on today's business, who’s working on tomorrow’s? In other words, “What’s next?” What are the new markets, categories, and/or innovations that will generate revenue streams for future growth and your organization’s continued health and viability?
The Problem of Focus
The fact is there might be no one is in the business assigned to future growth, which is partially a function of how organizations are structured and partially a function of how we compensate people. Organizations are structured to run the day-to-day business, and people focused on the day-to-day business are compensated to make sure it runs.
So, who’s focused on “What’s Next?” Not R&D, because they focus on revenue streams that are many years out. What's next for them is the 5 to 7 year, or maybe a 10 year, horizon. I am referring to projects that are shorter in term. Unless the organization focuses on them, these projects will never see the light of day.
The “What’s Next?” frustration is there for most business owners whether you work in a large company or a small one. Who has the time to focus on adjacent new products and markets? It’s hard enough to find the time to properly run the current business. And for those of you that still develop product roadmaps, the roadmap of the current business is the focus of your execution. The big point here, you’re not even being compensated on the anything else but the short term.
Look for Adjacent Opportunities
An easy way to look for new growth markets and opportunities is to look at adjacent products and services. These can more easily become an extension of the collection of your organization’s existing capabilities and competencies. By looking for opportunities to create value in accessible markets where your growth investment pays off you leverage capabilities and, more importantly, extend competencies to new opportunities. The result is increasing your return on growth investment.
Are new and adjacent market opportunities a better bet than core ones? Well let’s just say, “There is more risk.” But with more risk comes more reward, and when core opportunities are limited you need a plan of attack. The risk can be reduced and the rewards can be assured if you follow a systematic process to extend capabilities to the right opportunities.
How to Start
At Rocket Market Development, we start by focusing on an organization’s capabilities and competencies. so We need to find adjacent opportunities where we can leverage what they do best. There are three big steps:
The first is to determine where the gaps are. The second step is identifying capabilities and understanding what your competencies are. What are the current The first step is to identify capabilities of your organization?. Then for each capability, we list out the key components. Next we determine what those key components afford and what can be leveraged. When you get here you are no longer talking about a capability but now staring at a competency.
Finally, the third step is to find the best opportunities that can be supported with your unique set of capabilities & competencies. More than likely if you expand from your capabilities and competencies, the strategic fit should be fine.
So, What’s Next?
When growth opportunities are limited in the core business? Adjacent market opportunities await!