Digital transformation is defined as the application of information technologies to business and operational processes, customer experiences, work team performance, transaction speed and predictive analysis. Collectively, the business performance improvements that result from these digital optimization investments are disruptive to the competitive basis and in many cases the business model of an industry or market.
B2B Digital Transformation: Key Drivers
There are three major forces driving B2B industries to a digital transformation tipping point:
- The convergence of key technologies such as cloud, mobile, ecommerce, ebusiness, artificial intelligence, IOT and others has a compounding effect on the individual impact of any single technology. The integration of these technologies will likely accelerate over the next three to five years.
- The migration of digital experiences from the consumer world to B2B expectations is moving rapidly. B2B customers now expect that their business partners will deliver equivalent buying experiences, speed, mobility and simplicity. The B2B website is the cornerstone of customer experiences and is therefore the starting point for digital transformation.
- The digital generation expectations that repetitive tasks will be automated, that they will have access to collaborative problem solving tools — and mobile access to processes and teams — is fundamental to attracting and retaining top talent. This digital workforce will continue to grow in importance over the next three to five years, making it impractical to compete for top talent or customers using legacy business practices and processes.
Collectively, the force driving B2B digital transformation will dramatically change the basis for competition in every industry. From a strategic standpoint, it is therefore essential that every B2B organization define and implement a practical digital optimization roadmap in order to protect the fundamental value of the business.