Opportunity sizing
- Buyers 74 · Revenue GBP 818,400 · Gross profit GBP 343,728 · Break-even take-up 17.5%.
Executive Intelligence · Corporate Strategy and Growth
Growth Opportunity Discovery
Surfaces opportunities from the organisation's own verified data (for example repeat findings, unused capability, unserved locations) as hypotheses for a person to accep…
Demonstration: Aldercroft Facilities Services (fictional) · Facilities management. Fictional data and a scripted answer.
The situation
- Organisation
- Aldercroft Facilities Services (fictional)
- Who is asking
- Chief commercial officer
- Industry
- Facilities management
- What happened
- The company wants to know how much new revenue is plausible from selling a new service to its existing customers.
The question asked
How large is the opportunity from selling a smart-building service to our existing customers, on assumptions we can defend?
What it reads, and who can see the result
- Customer base exportNumber of customers by size band.
- Pilot results documentUptake and price in a small pilot.
- Reads
- Counts of customers by band and pilot summary figures.
- Does not read
- Individual customers' contracts or data.
- Permission
- Commercial analytics access to aggregates.
- Who sees it
- The chief commercial officer and the CFO.
Try it
Change the assumptions. Every result and the answer below are recomputed from them, and a warning appears when a result crosses a stated limit.
- Customers who buy
- 74
- Annual revenue
- GBP 818,400
- Annual gross profit
- GBP 343,728
- Share who must buy for a 500,000 gross profit
- 17.5%
On these assumptions the service does not reach the 500,000 gross profit the committee asked for.
The answer
Simulated answer. Written for this fictional case, not produced by a live model. Only the figures in it are computed, from what you decided above.
On these assumptions the opportunity is about GBP 818,400 a year, GBP 343,728 gross profit.
74 of 620 eligible customers buying at GBP 11,000 gives GBP 818,400; after the cost to serve, GBP 343,728 [S1][S2]. For 500,000 of gross profit, 17.5% of customers would have to buy.
The share who buy rests on a pilot of 14 customers, and it is the figure that changes the answer most. The honest message to the committee is a range, not a point.
Relies on: S1 · Customer base by size bandS2 · Pilot results, 14 customers
No approval is needed for this result: it is read-only insight, and nothing consequential happens because of it.
What it produces
Next step
- Widen the pilot before committing; the take-up rate is the number to firm up.
Limits of this example
- A pilot of 14 customers is a thin basis for a rate.
- No cannibalisation of existing services is modelled.
- This is a scripted demonstration on fictional data. No model was called and no real organisation, person or result is shown.
More in Executive Intelligence
- Enterprise Health MonitorOne view of whether the organisation's governed functions are healthy, built only from verified source readings.
- Executive Priority EngineRanks what needs executive attention across modules by stated, inspectable rules (overdue, severity, deadline, owner).
- Cross-Functional IntelligenceShows how an item in one function relates to items in others, using only links that are recorded (a finding to its obligation, a handover to its training).
- Business Performance NarrativeA plain-language summary of verified readings for a period.
- Strategic Planning AdvisorA planning workspace for objectives, assumptions, initiatives, owners and review dates, as recorded by people.
- Market Expansion IntelligenceCompares candidate markets or jurisdictions using verified, dated external data and the organisation's own compliance footprint.
- Competitive IntelligenceRecords competitor facts that a person enters with a source and a date, plus approved public-source feeds.
- What-If Decision SimulatorA person changes stated assumptions and sees the effect on verified baselines through documented formulas.
The Executive Intelligence story · This capability in the full register