PREPARE FOR THE B2B E-COMMERCE REVOLUTION:
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1 PREPARE FOR THE B2B E-COMMERCE REVOLUTION: FEATURING FINDINGS FROM FORRESTER RESEARCH S STATE OF B2B E-COMMERCE GLOBAL STUDY & LESSONS LEARNED FROM BDI December 6, 2013 Download handouts (PDF) : or info@mdm.com Produced by: Event Sponsors:
2 Download handouts (PDF) : or info@mdm.com AGENDA Introduction 5 minutes Andy Hoar 20 minutes Steve Grzymkowski, BDI 10 minutes Panel dialog (Tom Gale moderator) - 10 minutes Audience Q&A via Chat 15 minutes
3 Andy Hoar Forrester s Research Speakers Download handouts (PDF) : or info@mdm.com Steve Grzymkowski BDI Tom Gale - Moderating Modern Distribution Management
4 Online and Mobile Are Transforming B2B Commerce Andy Hoar Senior Analyst, Forrester Research December 6, 2013
5 Seminal Research on B2B ecommerce
6 Key Findings 2013 Forrester Research, Inc. Reproduction Prohibited
7 Key Findings Self-service tools are fundamentally changing the way B2B customers interact with companies Forrester Research, Inc. Reproduction Prohibited
8 Key Findings Self-service tools are fundamentally changing the way B2B customers interact with companies. Selling online and on mobile represent a significant new opportunity for B2B companies Forrester Research, Inc. Reproduction Prohibited
9 Key Findings Self-service tools are fundamentally changing the way B2B customers interact with companies. Selling online and on mobile represent a significant new opportunity for B2B companies. B2B companies that wait too long to implement ecommerce assume a big risk Forrester Research, Inc. Reproduction Prohibited
10 New B2B Customer Behavior
11 62% of B2Bs: ecommerce has fundamentally changed the way customers interact with us Base: 353 online B2B companies around the world
12 B2B Customers Want Self-Service Tools Base: 353 online B2B companies around the world
13 B2B Customers Want Self-Service Tools Research Online Global 62% Base: 353 online B2B companies around the world
14 B2B Customers Want Self-Service Tools Research Online Global 62% Support Online Global 58% Base: 353 online B2B companies around the world
15 B2B Customers Want Self-Service Tools Research Online Global 62% Support Online Global 58% Buy On Phone Global 51% Base: 353 online B2B companies around the world
16 Majority Of B2B Customers Use Mobile Devices To Research And Buy Products Online Research Buy Research Buy 62% 52% 54% 52% Base: 353 online B2B companies around the world
17 % of Total Mobile Will Represent 26% by % Business Internet Traffic 100% % 60% 40% 20% 0% Mobile 4% 26% Desktop 96% 74% Source: Cisco VNI May 2012
18 Significant New Opportunity
19 B2B Over Twice the Size of B2C $559bn $252bn Source: Forrester Research US Online Retail Forecast, 2011 To 2016, Key Trends in B2B ecommerce for 2013
20 Twice As Many Companies Believe B2B Online Will Grow Faster Than B2B Offline What do you expect your fastest growing sales channel to be in the next year? Direct to business partners online Direct to business partners offline Next 12 months 6% 16% Base: 353 online B2B companies around the world
21 Online-Only Customers Are More Active Than Offline-Only Customers Base: 353 online B2B companies around the world
22 Online-Only Customers Are More Active Than Offline-Only Customers Base: 353 online B2B companies around the world +1 Add items to order 59%
23 Online-Only Customers Are More Active Than Offline-Only Customers Base: 353 online B2B companies around the world +1 Add items to order Order at a higher frequency 59% 56%
24 Online-Only Customers Have Higher AOVs Than Offline-Only Customers Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online, 156 B2B companies that have been selling online for five years or more)
25 Online-Only Customers Have Higher AOVs Than Offline-Only Customers Global 37% Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online, 156 B2B companies that have been selling online for five years or more)
26 Online-Only Customers Have Higher AOVs Than Offline-Only Customers Global More than ¼ sales online 37% 52% Base: 353 online B2B companies around the world (147 B2B companies with greater than 25% of sales online, 156 B2B companies that have been selling online for five years or more)
27 Can Reach Customers More Effectively With Cross- Sell And Up-sell Offers Online vs. Offline Base: 353 online B2B companies around the world
28 Can Reach Customers More Effectively With Cross- Sell And Up-sell Offers Online vs. Offline Base: 353 online B2B companies around the world Global 54%
29 Can Reach Customers More Effectively With Cross- Sell And Up-sell Offers Online vs. Offline Base: 353 online B2B companies around the world Global EMEA 54% 47%
30 B2B Companies Can More Effectively Build Loyalty Online Than Offline Base: 353 online B2B companies around the world, 102 B2B companies in EMEA.
31 B2B Companies Can More Effectively Build Loyalty Online Than Offline Base: 353 online B2B companies around the world, 102 B2B companies in EMEA. Global 44%
32 B2B Companies Can More Effectively Build Loyalty Online Than Offline Base: 353 online B2B companies around the world, 102 B2B companies in EMEA. Global More than ¼ sales online 44% 65%
33 Opportunities 2013 Forrester Research, Inc. Reproduction Prohibited
34 Opportunities Revenue upside 2013 Forrester Research, Inc. Reproduction Prohibited
35 Opportunities Revenue upside Cost savings (including profitable only online) 2013 Forrester Research, Inc. Reproduction Prohibited
36 Opportunities Revenue upside Cost savings (including profitable only online) Loyalty building 2013 Forrester Research, Inc. Reproduction Prohibited
37 Opportunities Revenue upside Cost savings (including profitable only online) Loyalty building International growth 2013 Forrester Research, Inc. Reproduction Prohibited
38 Opportunities Revenue upside Cost savings (including profitable only online) Loyalty building International growth Category specialization (e.g. Akron Hardware) 2013 Forrester Research, Inc. Reproduction Prohibited
39
40 Traditional B2B Ecosystem (e.g. Dri-Eaz Industrial Dehumidifier) Production Brand Manu Distribution Offline Dist Consumption Buyers
41 New B2B Ecosystem Production Distribution Consumption
42 New B2B Ecosystem Production Brand Manu Distributors (private label) Distribution Online and Offline Dist Consumption Buyers
43 New B2B Ecosystem Production Brand Manu Distributors (private label) Distribution B2C Online B2C Offline Online and Offline Dist Pure Play Dist B2B Online Consumption Buyers
44 New B2B Ecosystem Production Brand Manu Distributors (private label) Distribution B2C Online B2C Offline Online and Offline Dist Pure Play Dist B2B Online Consumption Buyers
45 New B2B Ecosystem Production Brand Manu Distributors (private label) Distribution B2C Online B2C Offline Online and Offline Dist Pure Play Dist B2B Online Consumption Buyers
46 Next Steps -- POST
47 Next Steps -- POST People: Identify key customer segments and envision 2016
48 Next Steps -- POST People: Identify key customer segments and envision 2016 Objectives: Set clear and aligned goals
49 Next Steps -- POST People: Identify key customer segments and envision 2016 Objectives: Set clear and aligned goals Strategies: Employ ACTIVE strategies
50 Next Steps -- POST People: Identify key customer segments and envision 2016 Objectives: Set clear and aligned goals Strategies: Employ ACTIVE strategies Technologies: Enable successful outcomes
51 Thank You Andy Hoar Senior Analyst
52 BDI Industrial Distributor with 192 global branch operations in the U.S., Canada, Mexico, Europe and Asia, BDI services manufacturing companies throughout the world. Commitments to customer service, technical expertise and quality products have been our trademark for success for more than 75 years Products Mechanical & Electrical Power Transmission, Bearings, Linear Motion Control, Material Handling, Fluid Power, Industrial Supplies, Bulk Chemicals, Retaining/Locking Products, Industrial Hoses & Fittings, Industrial Tools, Adhesives, Sealants, Lubricants, Safety and Sealing Devices Industries Automotive, Ethanol, Consumer Food Processing, Food Machinery, Grain Processing, Meat & Poultry Processing, Fluid Power, Medical, OEM Specialty Services, Oil and Gas, Package Handling, Paper Processing, Power Generation, Waste Water 2013 Forrester Research, Inc. Reproduction Prohibited 52
53 BDI Have been accepting e-commerce orders for over 10 years Rolling out SAP, starting in Eastern Europe Replatforming e-commerce on top of SAP with Hybris and Endeca Multi-lingual Multi-currency Developed by Rosetta Recently started first pilot in Hungary Poland/Slovakia/Canada/US to follow 2013 Forrester Research, Inc. Reproduction Prohibited 53
54 Download handouts (PDF) : or info@mdm.com PREPARE FOR THE B2B E-COMMERCE REVOLUTION: FEATURING FINDINGS FROM FORRESTER RESEARCH S STATE OF B2B E-COMMERCE GLOBAL STUDY & LESSONS LEARNED FROM BDI Questions? Download handouts (PDF) : or contact info@mdm.com Produced by: Event Sponsors:
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