THE REVENUE OPERATING SYSTEM
A System For Generating Sustainable And Scalable Growth And The 100 Technologies That Will Enable It
The overwhelming customer preference for digital channels – amplified by a revolution in AI and an explosion in new digital devices and innovations – has made selling a capital intensive, digital, and data-driven team sport. Today, we’ve reached a tipping point where the cost, complexity, and interdisciplinary nature of selling has broken the back of traditional models for managing the customer cycle. Sales, marketing, and operations leaders struggle to coordinate the teams, systems, channels, and data that support modern selling. These dynamics have fundamentally reshaped the allocation of growth resources, operating budgets and capital investment. They are also redefining how businesses create value. This 91-page analysis found:
- Investment in front line sellers is growing. The cost of arming a customer-facing employee with the information, automation, and digital channel capabilities they need to compete in 2022 is rising. Spending per employee is on a trajectory to exceed $10,000 in technology and related services..
- Operating and capital budgets are being reallocated to owned digital selling channels and the systems, data, and operations that support them. Investment in owned and earned digital channels have taken share from paid media and promotions to command two thirds of growth operating investments.
- Significant financial value can be created by creating a system for scalable and consistent growth. The market value of the top 100 technologies enabling the Revenue Operating System has grown to nearly $1 Trillion. Sixteen “Revenue Operations Unicorns” valued at over $1 Billion have emerged from this group. VC and Private Equity investors poured $4.7 Billion in new investment into these firms in 2021 to fuel product innovation.
- The commercial technology ecosystem is converging around a more coherent system of growth. Thirteen mergers and acquisitions have occurred in this growing and dynamic community in the last 12 months, as narrowly defined point solutions and software categories converge around a more interconnected system for growth. The categories converging around this system include Sales Enablement, Sales Engagement, Sales Performance Management, Marketing Automation, ABM, RevOps, Customer Data Platforms, Revenue Intelligence, and Configure Price and Quote (CPQ) categories.
The current situation is unsustainable and unprofitable. To help solve the problem, the Faculty of the Revenue Enablement Institute propose a framework – the Revenue Operating System – as a better model for aligning the people, process and technology that underlie growth. It’s designed to align revenue teams and the systems, operations, and processes that support them across the entire revenue cycle. To help business leaders unlock more growth from the expensive data, technology and channel assets , this report will:
- The evolution of the modern sales and marketing investment mix;
- A Revenue Operating System for harnessing the power of these systems to drive consistent and scalable growth;
- The 100 technology platforms that are enabling the Revenue Operating System;
- A forecast for how these technologies will converge and evolve to form the modern commercial technology stack;
- A blueprint to help reimagine and knit together your commercial technology portfolio to gain advantage
- Seven smart actions to help you rationalize, connect, monetize, and better leverage the people, process and technology ton ways that create revenue, profits and firm value.
You can also learn more about the management and operating systems underlying these principles in the new book: Revenue Operations: A New Way to Align Sales and Marketing, Monetize Data, and Ignite Growth (Wiley, 2022).