Revenue Architecture Alignment and the Continuum
The goal is to increase revenue with a high performing sales and marketing engine, yet what happens when your business model is changing? How do you ensure marketing and sales are aligned with your changing business model?
The answer is to align your revenue architecture with your business architecture.
In the diagram below, we illustrate how a business moves along a continuum in pursuit of margin or scale – between “Commodity Product” at one end and “Luminary Consultant” at the other. Yet, as they move left or right in response to competitive and market pressures, they change their business architecture and often fail to realign their revenue architecture to fit.
What needs to be aligned?
It is important to identify and align each of the 12 revenue architecture dimensions based on where you sit along the continuum. Typically a business will have multiple product/ service sectors at different points along the continuum.
Revenue Architecture helps you define and structure the marketing and sales operating model in order to capture customer value with lower cost and higher predictability. Marketing and sales are unified around a closed loop marketing model and “revenue value chain”. Alignment requires adjustments to brand positioning, go-to-market, people and organization, channels & partners, sales process, collateral, marketing mix, technology, web presence, metrics, and acquisition programming.
Revenue Architecture is a framework to design and deploy marketing and sales capabilities that align with your business architecture, driving top line growth and lowering the cost of revenue, with more integrated marketing and sales.