Imagine you are a steel-maker with annual revenues of €500m. Or a retailer. Or an engineering firm. Your revenues grow by 5% each year – relatively predictably.
Just 20% of your revenues are from online sales today. And that is growing by 25% each year.
Two things about these numbers spring to my mind – though they are not always the things that would spring first to a CEO’s mind.
First, at this rate, by 2nd January 2016, the majority of the Firm’s revenues will come from online sources. Around this time, the Firm will probably need to be thinking and acting like an “Online Firm” does.
Second, at this rate, if the company as a whole continues to grow by 5% per annum, the traditional sources of revenue are actually in decline.
There is a definite culture change required when the majority of a Firm’s business is done online. It is a faster, more responsive, potentially more volatile environment. Not only does speed count, but simplicity of approach and quality of online communcation and provision of online services goes from a “nice to have” to a “must have”.
At some point, most businesses will either become “Online Businesses” or individual operating divisions or areas will do so.
The date may be nearer than you think. And preparation is not an overnight job.
Email me (mark@theconversationgroup.com) for my *rough* spreadsheet to illustrate the point. I make no claims for its robustness, clarity or quality – it’s a work-in-progress. But you can play with it and you may even find a print-out for your boss like the one below worth doing (you can also download as a pdf: Sample OnlineWhen):
