Saturday | 10 January, 2009
IS's Seven Levers of Growth
CIOs and their IS organizations need to play a greater part in enterprise top-line growth. The challenge is to understand that growth and contribute in the right way
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The Levers of Growth
There are seven, and only seven, ways in which an enterprise can grow its top line:
1. Improve operations. Includes selling more of existing products to existing customer segments through improved marketing communications, better pricing and enhanced availability of product from better supply chain practices.
2. Innovate products. Ranges from new product bundling and small enhancements to inventing new products and services.
3. Exploit new and existing channels to market. Includes exploiting new electronic channels.
4. Target new customers and markets. Includes expansion into new consumer demographics, regions and countries.
5. Acquire, merge or partner with similar companies. Typically includes absorption-style integrations, where the acquirer absorbs the target's business into its processes and systems.
6. Acquire, merge or partner with others in your business ecosystem. Includes vertical integration deals that seek to unlock more value for the end customer by changing the structure of the ecosystem.
7. Create completely new businesses, including "blue oceans", where there is little existing competition. This comes about typically through corporate venturing exercises and from spotting opportunities to be "where the competition is not".
CIOs that take a leadership role in helping to grow their businesses contribute in each lever. While much of this contribution is situation specific, and therefore too broad a topic to cover here, there are some general behaviours exhibited by successful CIOs and their IT organizations that are worth noting.
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