Using Strategical approach the B2B platforms can reform the supply and demand chain globally.
The world is currently grappling with COVID 19, thus pushing many businesses to shift their focus from traditional business model to Business-to-Business (B2B) Model. However, even before the COVID 19 outbreak in the world, the B2B model was already reforming business globally.
A report by Forrester has forecasted the increase of the US B2B eCommerce market by $US1.8 trillion by 2023. A B2B Model includes business interaction between two business organizations to offer products and services. It includes B2B between Manufacturer and retailer, Wholesaler and Retailer, and Supplier and Manufacturer.
The employee’s interaction between two businesses through social media channels, allows interested parties to learn about the Products and services offered by the other, initiate contact, and buy the products through e-procurement.
B2B Model allows any business organization to revamp its set up, reform its strategies, and invest in its growth by partnering with different business platforms. This initiates a competitive edge amongst the business organizations, which enabled them to provide improved products and services to customers.
A Mckinsey Insight survey shows that in the global market, 45% of the B2B decision-makers are highly optimistic for the economy to return to normal in the coming months, 96% of B2B companies have shifted their GTM model during COVID 19, and 64% of them believe that the new model is more effective than the older one.
Digitization of B2B Model
A report by Mckinsey Insight suggests that Digitization in B2B has enabled the revenue growth by up to five times and up to eight times the Earnings Before Interest and Taxes (EBIT) growth by up to eight times of their peers.
However, not many B2B models have ventured towards increased revenue. For them to succeed they must crack down the digital code imperative for their business. The interdependence of one service over others cater to create a network that facilitates the buyers and consumers to buy more B2B products in the same place.
A report suggests that this could be exhibited by deploying the use of data analytics to compute commercial operations and for achieving sustainable growth in sales.
For example, the Amazon Web Services (AWS) after offering the cloud infrastructure to their customers have now started facilitating Amazon Personalise a machine learning Technology similar to be used by AWS. This has enabled its customers to personalized products and content using the Application Programming Interface(API).
Optimizing the Customer Data
In any business model, maintaining customer data enables the suppliers to know about customer preferences and choices. However, segmenting the convoluted data to understand customer demands and services can be a daunting task.
However, establishing an inbuilt platform based tool for securing data enables the providers, and suppliers to augment the products and services according to the customer’s satisfaction.
A report suggests that the use of internal and external data and the use of different channels for serving different types of customers would guide the provider or supplier to reform strategies to assort customers and choices. This in turn will provide a wide range of opportunities where new technology can be applied.
A step towards tomorrow
For any B2B company to succeed digitally, they must monitor the strategies of the platform companies along with they are making decisions. The B2B companies must also improve their operational agility to seize the opportunities. This enables them to become independent of the B2B platform provider, thus operating without any protocol that platform providers might offer.
Looking out for talent while operating digitally into the B2B model, would help any company to excel in their operations. This will also provide scope for innovations, and new strategies to meet customer demands.