New Revenue Mining at a cursory level is an important annual activity for any organization. Market dynamics today change rapidly with new opportunities and competitive threats constantly emerging.
At PMPathlights we recommend two initial reviews. First, use the 6 Quick Take Questions outline from our previous blog to determine if you MAY have an opportunity. If you do, turn next to the 9 Initial Steps listed in this blog.
Note, however, that these are steps to take BEFORE engaging a broader team in New Revenue Mining. You simply need to get a bit down the discovery road before allowing New Revenue Mining to be a distraction to a broader group as dead ends OFTEN happen in new revenue mining and distraction from known revenue opportunities ALWAYS does.
The 9 Initial Steps
- Defining a Product Generically
You must remove all preconceptions to see new perspectives. Your product must be viewed by capability, not current use cases. - Create Generic Use Cases by Revenue Generation / Cost Reduction
Once the product is understood generically, core features can be constructed into revenue gen or cost reduction use cases. - Understanding Industries by Revenue Generation
New Revenue Mining is about matching to existing needs, not new market development. Early adopter buyers will evaluate on revenue creation or cost reduction. - Compare Each Generic Product Feature to How Industries Create Revenue and/or Drive Operational Efficiency
Once you understand your generic product features and how different industries drive revenue, you can mine for match opportunities. - Review Existing Competition for Each Concept Match
Good ideas often aren’t new ideas. There’s no point entering a well-established market unless there’s a disruption opportunity. - Review Potential Addressable Size of Opportunity
Once the previous hurdles are met, next look at the opportunity size. Again, any initiative would need to have a strong upside to take away investment form current focus. - Assess Disruption Index of Opportunity
Next, look at how you could disrupt an existing market space. The more disruptive you can be, the stronger the opportunity. - Evaluate Fit of Product to Need
Envision what prospects in the New Revenue Mining space would ask of your product. Can the current product configure to meet the need or are your “minimally viable product” requirements at risk of creating development demands? - Determine if Current Relationships Can Help
Finally, look at your customer and channel relationships. Can any of them help you test the market space and serve as a case study or evangelist if you are successful? Getting started is challenging. Having a “head start” in a relationship is key.
These 9 Initial Steps will quickly show if and/or where new revenue mining MIGHT be an option. Like with any such initiative, these “first-impression findings” must be followed by in-depth review but taking these first will help ensure that only real opportunities are explored.