Thursday, August 21, 2014

The Go-to-Market Revolution
Igniting Growth with Marketing, Sales, and Pricing

MAY 02, 2014by Rich Hutchinson

Great way of understanding how you should consider redesigning your fundamental capabilities.

Whether you ask a company’s CEO or its investors, they’ll likely identify revenue growth as the single biggest driver of corporate profit and shareholder value. 
Over the long term, revenue growth powers 75 percent of total shareholder return (TSR) for the upper-quartile value creators of the S&P 500. Even in the short term, growth accounts for nearly a third of TSR for these out-performers—double the boost from improving margins or cash flow. A growing business also empowers employees, attracts top talent, and helps fund expansion, transformation, and more growth. 
Growth is an imperative. But it needs to be profitable growth—and that is not a given… 
… In the recent era of uncertainty and financial constraint, many companies have focused on efficiency. They have energetically cut costs, even in the “go-to-market” commercial functions crucial to driving revenue—sales, marketing, pricing, branding, and customer insight. These companies have achieved productivity gains, but they've reached the point of diminishing returns. We’re learning again that we can’t cut our way to growth…. 
…A small set of successful companies are taking a different path. They are transforming their commercial functions and capabilities to create an engine of short-term revenue growth and long-term profit. They are doing so with little risk. These near-term victories are “self-funding” the creation of strategic capabilities. 
These leading companies are taking advantage of what The Boston Consulting Group calls the “Go-to-Market Revolution…
…The rich opportunities—and the perils of failing to act—emerge in the details of the three historic and concurrent tides of change driving the Go-to-Market Revolution:
Customer PathwaysThe first tide is the rapid recent evolution of what BCG calls customer pathways. The ways consumers learn about and buy products have shifted dramatically and quickly, triggered by changes in technology, communications, and media.
Advanced Data and AnalyticsThe second driver of change could be called the go-to-market arsenal. It is the rapid and transformative evolution of “smart” data, advanced analytics and modeling, and other tools capable of increasingly sophisticated approaches in segmenting and analyzing information and reaching customers.
Global and Emerging Markets
The final driver of the Go-to-Market Revolution is globalization, which creates two fundamental commercial challenges:
....First, globalization has changed the competitive landscape in every market…
.. ....Second, globalization in emerging economies has been accompanied by rapidly expanding wealth. Consequently, emerging markets represent a huge source of growth.

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