Chart of the week: New business to drive revenue growth in next five years

Almost double the number of executives see new-business building as a key priority for driving their revenue growth, according to a new survey.

McKinsey & Company’s 2021 Global Report on new-business building polled 1,178 business leaders and found they expect half their revenues to come from new products, business and services by 2026.

A total of 55% said this was among their top three priorities now – nearly double from 28% who said the same in 2018-20.

More than 80% of respondents consider it a crucial factor to prepare for disruptions or demand shifts. 

A significant 62% said they are focusing on creating new businesses to generate multiple revenue streams. Another 24% felt this is critical for their company’s financial health and will be their main source of new revenue growth.

What’s behind the figures?

The urgency to build new business has become a global phenomenon.

Factors that have made it a top strategic priority for organisations include:

• Developing new revenue streams
• Adhering to sustainability goals
• Adapting to technological change
• Changing customer expectations and demand
  

Sustainability in particular is key to new-business building. Almost 92% of the respondents said they want to meet the demand for sustainable products and services while another 42% wanted to make sustainability a core part of their business proposition. 

The uncertainty brought about by Covid has triggered many of these changes. Organisations can no longer depend on the traditional ways to generate revenue – they need to adapt and evolve with the increased use of digital technology and shifts in buying behaviour.

What does it mean for organisers?

A similar pattern can be observed in the B2B events industry where customers want more digitally-infused experiences.

Organisers are working on ‘Smart Events’ that can provide more value to their attendees, drive conversions and generate revenue.

ExpoPlatform CEO Tanya Pinchuk said:: “A Smart Event is an in-person event with extensive use of technology, where we simplify the visitors’ and exhibitors’ journey and make participation more effective.”

Visitors and exhibitors attending trade shows and exhibitions no longer expect the same old in-person interactions as before. They want value that can be measured and improved. 

This is possible only by analysing the millions of data points with digital tools and advanced AI algorithms.  Learn what this means by reading our guide to Smart Events.

As an organiser, you will also need to make sense of how future events are being reinvented using data science and AI. Download our free ebook the AI Blueprint to get further insights, tips and advice on this topic.  

We hope you enjoyed reading this article and found it useful. At ExpoPlatform, we want to help you build better events and communities. Please get in touch and ask for a demo here. Thank you.