To Compete, You Must Transform: The Importance of Transforming Your B2B Digital Strategy
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1 To Compete, You Must Transform: The Importance of Transforming Your B2B Digital Strategy May 24, 2106 Madhukar Kumar VP, Cloud Product Business Group, CX Oracle Andrew Cole, Director of Digital Content, WBR Research Asad Durrani, Chairman & CEO, Aaxis Commerce
2 Topics Key Findings on the State of B2B Digital Transformation The Case for Accelerating Transformation Imperatives and Best Practices for B2B Success Q & A Via Chat Copyright 2015, Oracle and/or its affiliates. All rights reserved. 2
3 Survey Methodology 1% 101 survey respondents mostly representing manufacturers and distributors 9% 7% Manufacturer Distributer 42% of respondents reported revenues of more than $1billon annually 10% 49% Other Retailers & Department Stores Computer Systems & Data Processing Services Responses gathered in April and May of % Healthcare & Biotechnology Copyright 2015, Oracle and/or its affiliates. All rights reserved. 3
4 The growing importance of B2B e-commerce 100% 90% 80% 70% 60% 50% 37% 34% 39% 31% 40% 30% 20% 50% 44% 44% 41% 38% 24% Somewhat Agree Strongly Agree 10% 0% B2B ecommerce is gradually becoming more important B2B ecommerce is critical to our business advantage and results Accelerating digital transformation is a strategic priority for our executives My company wishes to be considered a leader in digital business within our markets/industry 14% 12% My company is shifting to digital faster than our competitors B2B ecommerce is a threat to our sales organization and distributors Fast-tracking digital transformation is a strategic priority for the vast majority of B2B companies. Technologies will be critical to that process. Copyright 2015, Oracle and/or its affiliates. All rights reserved. 4
5 Which stage of digital transformation is your business in? 40% 38% 35% 30% 25% 26% 20% 17% 19% 15% 10% 5% 0% Stage 1: Exploring opportunities for digital transformation Stage 2: Defining digital strategy development process Stage 3: Building, testing, and launching digital capabilities Stage 4: Optimizing digital and innovating ahead of the curve Copyright 2015, Oracle and/or its affiliates. All rights reserved. 5
6 Contrasting the obstacles to delivering the best possible omni-channel ecommerce experience: 60% 55% New Data 50% 40% 48% 44% 41% 40% 41% 41% 34% 33% 30% 20% 28% 27% 24% All Respondents Digitally Mature Companies 10% 0% Complexity of our business Organizational and process challenges Limitations of current ecommerce platform and systems Lack of integration with back office systems Too much reliance on IT Time required to deliver innovations B2B companies cite the complexity of their business as the biggest obstacle to delivering the best possible omnichannel ecommerce experiences. Copyright 2015, Oracle and/or its affiliates. All rights reserved. 6
7 In which of the following are ways you are looking to upgrade your ecommerce experience? Add more rich content and imagery such as video Making product listings clearer, easier to find, and more enticing Building out or improving mobile accessibility Improving the overall user experience Improving SEO and discoverability Enabling audience segmentation and personalization. 64% 64% 63% 62% 60% 59% Better integration with our back-end systems 47% Improving product or service recommendations 43% Improving the quoting and ordering process flow/adding bulk orders Modifying platform to serve multiple types of buying decision makers 32% 34% Better integration with our customers back-end systems Becoming more consistent across international markets 26% 25% 0% 10% 20% 30% 40% 50% 60% 70% New developments in cloud technologies, web content management systems, and other tools support B2B customers unique demands for flexibility, accessibility of information, and enhanced experiences. Copyright 2015, Oracle and/or its affiliates. All rights reserved. 7
8 Contrasting technology priorities over the next 18 months Content Management (CMS / WCMS) 43% 45% Product Information/Content Management 38% 40% Marketing 28% 38% ecommerce Platform (upgrade or replacement) 24% 38% Mobile/Responsive Design 35% 38% Web site analytics 34% 34% All Respondents Quoting Digitally Mature Companies 27% 28% Onsite Search / Navigation 14% 27% A/B Testing 24% 27% Multichannel integration 17% 22% Order Management/Back End Integration 20% 24% New Data 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% While all respondents agree that content management tools are an essential component of the B2B digital transformation, many are still scrambling to build out the most fundamental digital tools, such as marketing and ecommerce platforms. Copyright 2015, Oracle and/or its affiliates. All rights reserved. 8
9 Recap of Survey Findings Fast-tracking their digital transformation is a strategic priority for the vast majority of B2B companies. However, 40% of B2B organizations worry that they are behind the competition. B2B companies must invest in new technologies to support the flexible omnichannel experiences buyers require. Through new cloud and content management technologies, B2B companies can support their customers expanding requirements. B2B companies cite the complexity of their businesses as the biggest obstacle to better ecommerce experiences. Critical internal challenges remain, but the technologies to support digital transformation are more accessible than ever. Copyright 2015, Oracle and/or its affiliates. All rights reserved. 9
10 AAXIS COMMERCE As a Creative Technology Agency, we specialize in driving business results using data insights and technology to orchestrate highlyengaging customer experiences. Asad Durrani, Chairman & CEO, Aaxis Commerce Copyright 2015, Oracle and/or its affiliates. All rights reserved. 10
11 15 Years in Commerce. 500 Commerce & Digital Marketing Experts on Staff. B2B Strategists & Solution Experts. Copyright 2015, Oracle and/or its affiliates. All rights reserved.
12 Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 12
13 AAXIS B2B Insights 1. Key B2B industry trends to watch and learn. 2. How to compete in acquiring and keeping customers. 3. Tangible best practices B2B industry leaders focus on. Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 13
14 B2B Buyer Trends 73% 89% 57% B2B Buyers research products & pricing using Google. B2B Buyers are researching company websites before calling a sales rep. B2B Buyers say most of the purchase decision is finished online, before talking to a sales rep. Research by Frost & Sullivan 2015 Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 14
15 B2B Engagement Trends 74% 93% 76% B2B Buyers say buying from a website is more convenient than buying from a sales representative. B2B Buyers prefer to buy online, once they ve decided what they need. B2B Buyers say Easy To Find and Descriptive Products is #1 website goal. Research by Frost & Sullivan 2015 Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 15
16 Leaders vs. Laggards 42% Grainger.com Sales ~$4.2B 10% B2B Industry Average ~10% of Sales are transacted online in B2B industry on average. B2B industry leader Grainger generates 42% of all sales from online. Research by Frost & Sullivan 2015 Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 16
17 Amazon & Disruption 2.3M 80% Low Amazon Business has added over 2.3 million products to it s Amazon Business site, in the past 3 years. Grainger expects its customer sales origination to shift from ~50% to 80% in 4-5 years. Industry wide, pricing is transparent and the cost for buyers to switch MFGs or Distributors is low. Research by Frost & Sullivan 2015 Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 17
18 Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 18
19 Win by Acquiring Customers Online 1. Expand online advertising and presence, and make sure to target the right audience. 2. Identify your customer Persona groups and personalize content and offers. 3. Segment personas by what s important for them to make their jobs easier. Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 19
20 Win with Retention 1. Make it easy to do business with you. 2. Automate manual and repetitive tasks with self-service capabilities. 3. Elevate the role of customer-service and sales from order taker to solution consultant. 4. Help customers do their jobs better. Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 20
21 Win with Execution AAXIS Digital Maturity Index measures where customers are today, in terms of level of digital sophistication, and creates a strategic framework to advance and drive more revenue in stages. LEVEL 1 Stable Platform Implement Enterprise Level Platform Basic integrations. Digital ecosystem stable. Support and operations model is working. LEVEL 2 Metrics Driven Refine Commerce growth strategy Baseline KPIs Define user personas and segments Define personalization and content strategy Master basic capabilities of the platform LEVEL 3 Advanced Optimization Optimize the business KPIs. Optimize customer segments. Optimize content targeting. Omni-Channel Experiences - Ensure consistent content across ALL channels and touch-points LEVEL 4 Intelligent Automation Omni-channel understanding of customers. Automate personalized, omnichannel engagement. Derive actionable insights from big data. Programmatically drive functionality on your site with real-time, big data insights. Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 21
22 B2B Best Practices ~$13 billion in annual revenue. ~$1+ billion annual online revenue. Copyright 2015, Oracle and/or its affiliates. All rights reserved.
23 Growth Strategy Have a strategy and a plan for how you re going to run and grow your business online, before you launch. Know what resources, and what partner you ll need to drive customer acquisition, improve conversion rates, and increase customer lifetime value and loyalty. Omni-Channel Digital can and should enhance customer engagement in all channels. Focus heavily on mobile experiences. innovate traditional off-line channels with digital resources shift the role of customer service reps for mere order takers to sales and solution consultants. What s your advice? Copyright 2015, Oracle and/or its affiliates. All rights reserved.
24 What s your advice? Customer Retention To attract and keep valuable customers, understand their needs and persona profiles. Do this before you get started on designing your solution. By focusing on how you can make it easier for your customers to do business with you and be more effective at their own jobs, you will design a winning B2B solution. Data & Integrations At the heart of all customer experience is clean, actionable and accessible data. Focus on enriching, cleansing and organizing your product and commerce related data and make it available enterprise wide. This means investing in either a PIM or MDM solution. System Architecture & Performance Look for opportunities to simplify the number of pieces in your digital ecosystem, while focusing on the performance needed to support the speedy experiences all online users have come to expect. A slow page can often equate to a lost customer! Copyright 2015, Oracle and/or its affiliates. All rights reserved.
25 Get a complimentary B2B Assessment AAXIS will help you define the best strategic and technological approach to grow your online business, according to your organizational needs, budget and readiness. Go to: aaxiscommerce.com/b2bhelp Copyright 2016 AAXIS Commerce. All rights reserved. Confidential. 25
26 Imperatives for B2B Success Madhukar Kumar VP, Cloud Product Business Group, CX Oracle
27 Market Dynamics Create Operational Challenges Technology Innovation & Agility Transparency & Simplicity New Operating Models Journey Focused Customer Experience Copyright 2015, Oracle and/or its affiliates. All rights reserved. 27
28 Most Important B2B E-Commerce Success Criteria 49% 47% 43% 37% 36% 29% 27% 20% 4% % of customers buying online New customer acquisition Online revenue Conversion rate Customer retention Lowering cost Average order Customer to serve customers value lifetime value Average number of line items Copyright 2015, Oracle and/or its affiliates. All rights reserved. 28
29 Aspiration to Execution Gap 35% 23% 15% 16% 20% Today In 3 Years 1% 12% 5% 3% 10% 8% 9% 9% 5% 3% 7% 7% 4% 2% 11% 0-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% Over 80% Copyright 2015, Oracle and/or its affiliates. All rights reserved. 29
30 Back to Basics for Revenue Growth 79% of the buying journey is completed without a vendor 44% can t match misspelled terms with right product Copyright 2015, Oracle and/or its affiliates. All rights reserved. 30
31 Keys to Tailoring the Buyer Experience Content in Context Simplified Workflow Custom Entitlements Easy Approvals Automated Billing Copyright 2015, Oracle and/or its affiliates. All rights reserved. 31
32 Managing Complexity for Success Seller Business User Empowerment ERP Integration Buyer Online Self-Service Workflow Automation Differentiated Experience Growth Growth Enabled Infrastructure Total Control Over Experience Copyright 2016, Oracle and/or its affiliates. All rights reserved. 32
33 Addressing the Challenges REVENUE EXPERIENCE COMPLEXITY Discoverability Usable Relevance Personalization Visibility Simplicity Internal Complexity Customer Complexity Growth Complexity Copyright 2015, Oracle and/or its affiliates. All rights reserved. 33
34 CX Cloud Suite: Complete CX Solutions & Unified Platform SOCIAL STORE FIELD SALES CONTACT CENTER MOBILE FIELD SERVICE WEB Financial services Communications High tech Consumer goods Life sciences Retail CX INDUSTRY SOLUTIONS Manufacturing Automotive Healthcare CX APPLICATIONS Professional services Hospitality Utilities Travel and transportation Media & entertainment Education & research IOT MARKETING SALES CPQ COMMERCE SERVICE SOCIAL MARKETPLACE UNIFIED CX PLATFORM CUSTOMER MASTER ANALYTICS & DATA VISUALIZATION DATA AS A SERVICE APPS PERSONALIZATION PLATFORM SERVICES INTEGRATION SECURITY Confidential Oracle Internal Copyright 2015, Oracle and/or its affiliates. All rights reserved. 34
35 What Success Looks Like Deployed in 7 countries across 2 major businesses 93% Electronic Order Entry (switch from phone & fax) Multiple platform consolidation Give business users more control 50% increase in online orders 2.5x performance improvement Zero failed orders Launched in 6 months Direct to consumer initiative to bring information to residential customers Deployed Oracle Commerce Cloud Give business users intuitive tools to manage content and commerce experience Interface to Oracle E-Business Suite for inventory and pricing Copyright 2015, Oracle and/or its affiliates. All rights reserved. 35
36 Take The Next Step How Oracle and Aaxis Commerce Can Help Digital Business Assessment Digital Business Strategy and the Business Case for Action Digital Business Technology Roadmap Understand The Possible Copyright 2015, Oracle and/or its affiliates. All rights reserved. 36
37 Q&A For More Information: oracle.com/goto/b2b-ecommerce aaxiscommerce.com/b2bhelp Madhukar Kumar, Oracle: Assad Durani, Aaxis Commerce: Copyright 2015, Oracle and/or its affiliates. All rights reserved.
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