Creating a revenue generation engine in the era of discontinuity:
6 key agenda items for CROs
Article｜2025-3-25
7 minute read
How should companies face an era of discontinuity? Simply following precedents without taking action can quickly lead to a loss of international competitiveness. Sustainably enhancing corporate value means quickly understanding signs of change, questioning existing norms, and continuously enhancing the value provided to customers through self-driven transformation.
Companies need a new type of leader serving as the CEO's right-hand person to drive transformation across the entire organization and continuously enhance the value that the company provides. In today's increasingly uncertain business environment, the role of the CRO (Chief Revenue Officer) is becoming even more important.
The CRO has two main roles. The first is "maximizing the value that the company provides." The second is "maximizing revenue." In both cases, breaking down organizational silos through data-driven approaches and creating a revenue-generating engine are key. To enhance the effectiveness of transformation through these roles, companies must address six key agenda items: "Portfolio," "Insights," "Capability," "Economics," "Behavior," and "Intimacy," to drive organizational evolution. The practice of these six key agenda items is the fusion of data with human capability.
This report incorporates Fujitsu’s practical knowledge to give provide C-suite executives with a comprehensive overview of the mission of the CRO, the impact that the CRO has on revenue, and the six key agenda items the CRO should address. There is no longer a template for success. We hope that the importance of the CRO role and Fujitsu's practical knowledge will provide hints for sustainable corporate value enhancement in a discontinuous era.
*The affiliations and the content of this article are valid as of the date of its original publication.
1. Two missions of the CRO
The role of CRO emerged during the late 2000s to the 2010s. It originally developed in relatively small startups. The broad role is to oversee the entire business strengthening and expanding the revenue base by pioneering new markets ahead of competitors.
The mission of a CRO can be summarized into two "maximizations." The first is maximizing the value provided to clients. In a dynamically changing business environment, client needs are intricately intertwined, and there is a high risk that the products or services a company offers will quickly become obsolete. To address the reality of increasingly shorter product and service life cycles, it is essential to establish an end-to-end customer support system to assist in business transformation.
The second is maximizing revenue. The key is data. Visualizing deal leads, pipelines, client feedback, and market data. The front-line organization and sales department collaborate based on objective data to refine the value and services offered. Creating a system that generates new revenue thorough data-driven management that achieves overall optimization rather than individual optimization is required. Data is a common language that transcends words and customs. Without breaking down silos between organizations or among globally dispersed locations, maximizing revenue will be challenging.
A CRO should be the partner that has the greatest understanding of the customer. They have to explore issues that the customers may not even be aware of, pave the way for solutions, and collaborate deeply. That understanding comes from constantly keeping an antenna to sense changes in the market and clients, and committing to ceaselessly working on the two missions, transforming the company ahead of changes.
2. Breaking with tradition to drive growth
Many companies that continue to grow even in times of discontinuity break down organizational silos and make seamless connections, elevating their human resources, data, and knowledge into strategic assets. According to a report published by McKinsey & Company in 2023 titled "How CROs are propelling growth from the C-suite"(1*), companies in the Fortune 100 with CRO-like roles show 1.8 times higher revenue growth compared to their peers.
On the other hand, ensuring a CRO is appropriately placed presents a challenge. According to McKinsey, only 11% of Fortune 100 companies have a CRO. On that point, the company gave the following analysis: "Changing [long-established complex executive] structures takes time, and many companies are still figuring out how to navigate this new landscape. "
Positioning a CRO and maximizing their role require transforming existing organizations and management as well as behavior patterns and corporate culture, including those in the management team. Large companies, especially Japanese ones, may resist completely abandoning past successes. Fujitsu also shares this trait to some extent. Although our transformation is still underway, the management team shares a strong sense of urgency about the current situation and is taking steady steps forward.
