Good to have clear priorities !
Before you answer the next question, it’s important to clarify some definitions of what constitutes as a disruption, a threat and an opportunity…
the three(3) key drivers for transformation.
DISRUPTION: Businesses need to keep transforming and adapt to their ecosystem, in order to overcome disruptions, which may come from all angles. You should be conducting a PESTLE analysis (included with guidance in the ROADMAP workbook) to understand all the possible political, economic, societal, technology, legal or environmental disruptions that could impact a company and its performance. eg. Look at the wider impacts of climate change and the CORONAVIRUS pandemic.
THREAT: There are equally known threats from competitor offerings or from changing consumer and customer behaviors. These could lead your user uptakes, and related revenues and profits to slide (decrease) as customers and/or users flock to alternative services. This situation could happen independently or in conjunction with mounting costs… thus posing a threat to a business model and the very survival of the business in the longer term.
OPPORTUNITY: Companies may also choose to be proactive and innovate new services to capture new market opportunities with speed to market. Choosing to fill the gaps in the market strategically or tactically, can enable a company to capture new customers and form a strong brand from being first to market with their innovation. The approach taken can achieve great results… no matter how big or small the innovation or investment required to make it a reality. eg. Tesla’s Mission Model strategy (See the Mission Model case study example in the BOOK).
All of these… are key reasons that should account for why changes and transformation projects should be funded, and thus support prioritzation, decision making and the accounting for a return on investment (ROI).