From Cost Center to Revenue Driver: The CMO's New Role in Innovation

Pssst! Maybe you’ve noticed this already but we thought we’d discuss an evolution that's quietly reshaping the (semi-filled) corridors of tech companies: "Marketing Powered Innovation". This isn't your typical buzzword of the week but it’s really an indication of the changing winds blowing through the CMO’s office.

Historically, the Marketing department has worn the 'cost center' badge, playing its part in ‘making things pretty’, organizing the tradeshows and events, and leading campaigns. (ALL marketers know this perception is a tremendous, insulting under-appreciation for the essential, complex, and often thankless work we do…sigh.) As such, Marketing, particularly the CMO, has also worn a target on its back when times got tough…or a scapegoat was needed to blame for negative corporate performance. 

Now, in a fresh twist, the Marketing department is emerging as a force for recognizing and leveraging untapped potential currently buried in an organization's existing arsenal of products and services. Think of Marketing Powered Innovation as sort of a bridge: a connection between what exists and what's possible (the ‘what if’) without wading through the muddy swamp of traditional R&D and new product introduction cycles.

Marketing is forging a new role–that of “Igniter and Executor of Opportunities” and “Generator of New Revenue Streams”. It’s evolving into a profit center, not just a cost center. And that’s a good thing. 

It's crucial to understand this doesn’t sideline or diminish the invaluable contributions of the official Innovation function. Instead, it's all about collaboration. Marketing Powered Innovation amplifies, not overshadows other functions. Think of it as a Salsa dance of synergy where Marketing identifies the rhythm and opportunities, while R&D provides the deep beats and the baseline. The result is a spicy harmony of innovation that can keep the pipelines–both of revenue and of innovation–flowing steadily. 

What does this mean for CMOs? This: Your role is expanding. You're now at the intersection of recognizing potential and actualizing it. Translating market insights into actionable strategies, and reshaping market categories is now part of the playbook. A holistic, customer-centric approach to innovation is the game, and Marketing's role in it is more pivotal than ever.

If this intrigues you, stay tuned. The world of Marketing Powered Innovation is growing and evolving, and there's much more to uncover.

See our next post: The Rise of Marketing Powered Innovation in Tech: Why CMOs Should Take Notice

© 2023, Claroti, Inc. Claroti is an innovation strategy and go-to-market consultancy enabling technology companies to create sustainable, profitable business growth through pinpointing and solving unmet market needs. We do this by identifying technologies, use cases and applications, audiences, and adjacent markets emerging in the next one to three years and reinventing, reusing, and recasting the company’s existing products, services, and business models to meet those opportunities (Marketing Powered Innovation). This reimagining of already ‘on the shelf’ offerings enables rapid go-to-market that drives competitive advantage and increased revenue generation with limited incremental investment and no R&D. Claroti helps companies unlock untapped potential in their existing products and services to create new streams of revenue.

Disclosure: This post was AI + human-generated, however, the ideas and underlying gist are original and generated by the human author. The organization, grammar, and presentation may have been enhanced by the use of AI.