Let me summarize this reality another way: “Companies that do not yet exist will build products not yet conceived using materials not yet in existence with methodologies yet to be defined. Are you ready to reinvent to keep up?
— Jim Carroll
Original 2021 statement: 50% to 80% of the revenue that a company will generate by 2030 will come from a product or service that does not yet exist today
What Jim has written about this
From “Reinvention: The Critical Element in Your Disruptive Business Strategy” (September 2021)
This resulted in the reality that in an era in which much of your future revenue will come from products or services that don’t yet exist, your legacy might very well be your death sentence!
What are the driving trends that define a need for regular, continuous revenue reinvention? There are many. Product lifecycles have become shorter; market longevity is not guaranteed; new competitors emerge faster; customers display less loyalty. These trends and many more mean that you don’t have any guarantee that the product or service that you are offering today will be in demand tomorrow - or even relevant.
I recently spoke at a leadership meeting for a global organization, where the CEO spoke of a future in which the company’s success would come from what he called “chameleon revenue” — the sales derived from entirely new product lines. The chart he presented said it all: the organization’s future consisted of a steady decrease in baseline revenue and accelerating revenue streams from markets it currently does not participate in.
From “Your Future isn’t What You Think It Is: Are you Reinventing Fast Enough?” (July 2022)
This resulted in the reality that in an era in which much of your future revenue will come from products or services that don’t yet exist, your legacy might very well be your death sentence!
What are the driving trends that define a need for regular, continuous revenue reinvention? There are many. Product lifecycles have become shorter; market longevity is not guaranteed; new competitors emerge faster; customers display less loyalty. These trends and many more mean that you don’t have any guarantee that the product or service that you are offering today will be in demand tomorrow - or even relevant.
I recently spoke at a leadership meeting for a global organization, where the CEO spoke of a future in which the company’s success would come from what he called “chameleon revenue” — the sales derived from entirely new product lines. The chart he presented said it all: the organization’s future consisted of a steady decrease in baseline revenue and accelerating revenue streams from markets it currently does not participate in.
From “Apple - 60% of revenue from products less than 4 years old!” (January 2011)
Yet much of the discussion overlooked a significant factor: 60% of Apple’s revenue came from products that didn’t exist three years prior to the earnings release, according to an analysis of Apple’s revenue by mobile app developer Asymco.
Clearly Apple is on a very significant innovation roll here, but there are lessons to be learned for other organizations. If product life cycles are collapsing in your industry, do you have the capability and wherewithal to generate revenue where revenue hasn’t existed before? Are you prepared to bust into new business models so you can enter markets where you haven’t participated before? Do you know how to add service and other revenue streams to commodity product lines so that you can generate additional revenue from previously stale product lines?
For years, I’ve been preaching to my clients that their ability to survive and thrive in the future is going to come from their ability to generate new sources of revenue and adapt — I covered the issue about a year ago in a column on the concept of chameleon revenue (Netwatch, December 2009). Apple’s numbers indicate that the trend might be picking up steam.
Read the full pieces on jimcarroll.com:
Reinvention: The Critical Element in Your Disruptive Business Strategy
Your Future isn’t What You Think It Is: Are you Reinventing Fast Enough?
Apple - 60% of revenue from products less than 4 years old!