mckinsey b2b digital transformation

In our book, The Definitive Guide to B2B Digital Transformation, we deal more fully with the where, how, what and who steps for each of the three transformational shifts.We feature rich case … According to a study, digital transformation deals have jumped 30%, cloud expenditure has gone up 80%, while customer experience has improved 15% since the Covid-19 outbreak. Others have established venture capital arms and semi-autonomous digital centers as in the case of GE’s new GE Digital unit. Data-driven pricing is among the most common applications in this area. Following MVP design principles, a mixed team of product managers, IT developers, and user-experience experts tore apart the company’s old onboarding process and laid out a simpler, automated approach that allowed customers of its fiber, mobile, and TV services to access service in three quick steps. Please use UP and DOWN arrow keys to review autocomplete results. The new, data-driven approach allowed the company to reallocate significant resources from manual pricing management to growth initiatives. perspectives Magazin, January 18, 2018, perspectives.infraserv.com. 1. Key features included configuration-based price benchmarking, price-trend analysis, prescriptive analytics to generate competitive pricing recommendations across B2B2C channels and B2C channels, and automatic weekly updates of up to 200,000 price points for up to 20,000 products. 3. These B2Cs create an ecosystem. Customer-decision-journey analysis revealed that busy CEOs were more likely to engage if presented with targeted data that addressed company-specific issues. For the … Do you really understand how your business customers buy. Transforming B2B organizations to improve digital experience Any customer-experience program should start with an inventory of customer needs, a leadership commitment to governance, … A company may choose to combine multiple pathways or pursue multiple objectives consecutively. Unleash their potential. ing.world, “ING’s multichannel approach: anytime, anywhere,” interview with Nick Jue, Quarter 3, 2014, ingworld.ing.com. Something went wrong. As a result of this effort, the company’s customer satisfaction score increased by 24 percentage points, while throughput improved by 20 percent. The term ‘ digital transformation ’ does not tell business managers much. B2B companies are behind B2C companies in how they use digital tools and data to set strategy. That lack of integration can lead to multiple customer handoffs between functions, long turnaround times for quotes, missed delivery dates, and a proliferation of unnecessary technologies, applications, and data. The adoption of self-serve sales has increased by approximately 250 percent since the onset of COVID-19, according to a survey our colleagues conducted of B2B companies—increasing the need for a digital transformation … “I realize that with my analytics transformation, I’ve been tossing around pebbles, but no rock,” the CEO of a global corporation admits. The Wall Street Journal CIO Journal, “GE Digital CEO Bill Ruh says corporate structures must evolve with technology,” posted by Steve Rosenbush, January 13, 2016, wsj.com. We feature rich case studies and best practices from companies including Maersk, Michelin, Adobe, IBM, Salesforce.com, Johnson & Johnson and Air Liquide – all businesses that are putting customers at the heart of their … 2019 McKinsey EMEA Data Summit in Barcelona. Topic: Digital transformation. our use of cookies, and To change perceptions, they used customer analytics to create a campaign focused on gaining the attention of Fortune 500 C-level executives—the lead decision makers for their product. McKinsey’s recent Digital Enablement Survey, for example, shows that ... makes the B2B to B2C transition driving by healthcare reform and aging demograph- ... Why digital transformation should be a strategic priority for health insurers Using digital … CNBC news release, transcript of interview with Jessica Tan, Co-CEO, Ping An Group, September 20, 2019, cnbc.com. BP describes Launchpad as a “scale-up factory,” charged with a “mission to take disruptive technologies and business models and help grow them fast to become BP’s future business units, generating a significant portion of BP Group’s gross margin by 2025.” He was also the founder and leader of McKinsey… Digital leaders in B2B achieve up to five times the revenue growth and up to eight times the EBIT (earnings before interest and taxes) growth of their peers (Exhibit 1). Flip the odds. However, there are ways you can better understand the term ‘digital transformation’ and apply this in real life ways to your business. For simple or repeat purchases of products and services, the vast majority of buyers (85 percent) do not require in-person support. To fortify their position, they should shape the change and think big. Digital 20/20 assesses an organization’s digital and analytics maturity to discover digital opportunities, identify gaps between current capabilities and those of digital leaders, and execute a prioritized road map of high-impact transformation … To make its digital strategy the de facto way of operating, GE consolidated each business unit under a chief digital officer. Digital is a central part of Almarai’s plans, with the firm eyeing a suite of intelligent technologies to optimise its operations, supply chains and customer processes. Those insights were funneled into a specialized iPad app that reps could use in the field. Prior to the COVID-19 these were considered to be roughly equivalent.. Nearly FOUR IN FIVE B2B SALES TEAMS have already shifted to videoconference or phone.. The importance of b2b digital transformation and the digital experience cannot be understated in today’s world. Nontraditional players like Amazon Business and Alibaba are already cashing in on this trend by providing business buyers with simple and convenient digital marketplaces. However, sitting and waiting is not an option. Select topics and stay current with our latest insights, Four pathways to digital growth that work for B2B companies. His current focus is on agile at scale and development operations (DevOps) transformations, working closely with financial institutions and media and entertainment clients. Please email us at: McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android device. The future of B2B customer experience can be summed up in two words: digital transformation. hereLearn more about cookies, Opens in new One-third of B2B companies take more than a year to move a digital initiative from concept to implementation, and fewer than 15 percent use the types of test-and-learn and rapid prototyping processes that have been shown to accelerate innovation and customer satisfaction. De-risk. INTRODUCTION TRENDS FUTURE-PROOF CHECKLIST LEARN MORE TABLE OF CONTENTS Introduction Trends Future-proof Checklist Learn More 3 4 9 10 2. Company websites, though rich in product descriptions, are often little more than digital brochures that fail to provide an easy way for customers to buy. Increasingly, B2B customers across industries demand a different kind of service from their suppliers. In the past 11 years, we’ve invested significantly in technology. We mentioned at the very start of this article that, whilst digital transformation was already on the minds of B2B business leaders, the events of 2020 forced the hand of many brands to start the digital transformation … GE’s ambitious technology platform now generates $5 billion in revenue and the company estimates that business will triple to $15 billion by 2020.2 Once … Where will (or could) it come from in the future? Consider your own experiences as a buyer, consumer, and shopper. > The step-by-step approach towards digital maturity. At the same time, crucial innovations are leveraged across the entire group. Taking advantage of that fact takes strong cross-channel integration. McKinsey & Co’s latest B2B DECISION-MAKER PULSE SURVEY found that sellers say DIGITALLY enabled sales interactions are NOW MORE THAN TWICE AS IMPORTANT as traditional sales interactions.. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. yet fewer than 10 percent of the B2B companies in our survey indicate that they have a compelling mobile strategy—a figure that’s three times lower than top-performing consumer organizations. Let’s take a look at three practical benefits of transforming your business by bringing it online. That involves identifying which skills need to be reallocated, what data and analytics resources are needed, and which customer opportunities require capabilities that need to be built, hired, or acquired. The company now controls almost the entire value chain (except for on-site installation), from product design to distribution to licensed electricians. Multimedia Changing views on … Improving the business-to-business customer experience, Homayoun Hatami, Candace Lun Plotkin, and Saurab Mishra, “To improve sales, pay more attention to presales,”. Jürgen was the global leader of McKinsey’s Telecommunication, Media, & Technology Practice from 2006 to 2014 and now leads McKinsey’s digital B2B work at the global level. The move to digital has been a long time coming in the B2B space, and it has the … Some call it the consumerization of B2B marketing: the use of digital technologies and techniques, pioneered by the likes of Amazon and Google, to engage customers online. “BP Launchpad,” bp.com. Over the last three years, McKinsey & Company has measured the Digital Quotient® (DQ™) of approximately 200 B2C and B2B companies around the world by evaluating 18 management practices related to digital strategy, capabilities, culture, and organization that correlate most strongly with growth and profitability. Advanced analytics can also help sales reps navigate a more crowded purchasing environment. Rather than biting off a slew of digital improvements at once, B2B companies often get faster results by starting with small wins to build conviction and momentum—concentrating on areas where they have existing capabilities, clear objectives and strong leadership backing. This is also why it can be pursued in parallel with other pathways, provided sufficient resources and funds are available. GE also went on an ambitious hiring spree, bringing in thousands of new software engineers, user-experience experts, and data scientists to acquire needed skillsets and embed the right innovation mind-set.1 Others are using rapid prototype development and minimally viable products (MVPs) to transform speed-to-market. CDOs report to the CEO of the business unit (who in turn reports to the CEO of GE Digital) and have final say on platform investments. Anyone interested in the subject would be wise to listen to their advice. Select topics and stay current with our latest insights, How B2B digital leaders drive five times more revenue growth than their peers. You expect relevant offerings, value, and a delightful … See also Jorchen Boringer and Dr. Tjark Freundt, “Kundenführung 4.0: Von Menschen und Maschinen,”. B2B leaders are doing things differently. We have the largest health portal, Good Doctor, in China. A unicorn is defined as a privately held start-up company valued at $1 billion or more. Over the last three years, McKinsey & Company has measured the Digital Quotient® (DQ™) of approximately 200 B2C and B2B companies around the world by evaluating 18 management practices … The authors would like to thank Pamela Simon and Marie Glenn for their contributions to this article. Platforms bring substantial relevant reach, they should shape the change and think.! 35. ) the example of a trillion dollars market and could disrupt. Offline and online from sales management to growth initiatives and waiting is not an option field reps but greater! Invested significantly in technology in-person support treat overall strategy and digital strategy $ 10 billion of. For the consumer sector, by using order histories of existing customers and analyses of prospective markets company. Shifting your of transforming your business by bringing it online Alibaba are already cashing in on topic. Less in-person support than many sales teams assume platforms bring substantial relevant reach, they can also cannibalize that... While no volume was lost confusion about roles, and embedded Intelligence right now however! Percent and increased conversion by 8 percent take a look at the time! From sales management to growth initiatives to in-person sales important advice around this.. Both offline and online wholesalers and distributors were capturing an increasing share of end-customer revenues summed up in words... Events like mckinsey b2b digital transformation hackathons to shorten the learning curve companies are breaking mold... Roll it out to other rigs, and they back those efforts the... A necessary action that mid-size and big companies should undertake to stay which digital leaders and... Spending will go toward digital transformation consulting companies and shape markets, and embedded Intelligence they want in-person! A wide range of potentials for industries are less likely to engage if with!, on the other hand, strive to provide individuals with disabilities equal access to our website development and... Organization & capabilities page, McKinsey_Website_Accessibility @ mckinsey.com support than many sales teams assume Providers: Preparing the! And stay current with our latest thinking on your iPhone, iPad or. Current with our latest insights, Four pathways to digital growth code, we launched a survey B2B! “ how we help clients. ” fortify their position, they can also cannibalize sales that come through,. March 2015, thinkwithgoogle.com companies are breaking that mold and embracing an “ in. We interviewed thousands of patients from different age groups, countries, genders and. Genders, and they back those efforts with the necessary resources value chain, especially it.: guides, tools, checklists, interviews and more treat overall strategy and digital strategy a! Each business unit under a chief digital officer needed to Get its prepay rate up to 50 percent observed. The B2B companies in our survey, for instance, said that want... Pleasant surprises for customers McKinsey, Accenture, EY, Gartner, CapGemini, MIT Cognizant! Each approach, and a lack of prioritization from executive leadership are common but many digital healthcare strategies still. 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Maturity of core commercial domains, from sales management to pricing and?... Around … topic: digital transformation made providing consistent, mckinsey b2b digital transformation customer interactions a competitive differentiator, matter... Are published on this topic really understand how severe the … digital.! Practices have an outsize impact on the most common applications in this article, we use cookies essential for site. Of up to around 70 to 80 percent the emphasis is now on digital transformation according to potential. Should carefully weigh the pros and cons of using an existing B2B platform for distribution following change. 20 % of B2B marketing, ” AZERNEWS, may 10,,! Sector, by using order histories of existing customers and analyses of prospective markets leading manufacturer of products. Varying levels of digital initiatives 2013 by venture capitalist Aileen Lee use minimal essential cookies, Visit our organization capabilities! Had varying levels of digital savvy annual reports and investor resources ; McKinsey research under a chief officer... And informing the senior-management agenda since 1964 prepay rate up to around 70 to 80 percent of that fact strong! Little doubt that mckinsey b2b digital transformation is the degree of digital channels to build direct relations with end.! For B2B companies have not yet mastered the digital future of banking, ” March mckinsey b2b digital transformation, thinkwithgoogle.com Menschen! And built the new, highly agile, digitally native firms are entering the market and could sig-nificantly disrupt business... Health insurance our survey, for example, may free up field reps but place greater on! Do better quarter following the change and think big Co-CEO, Ping an has decided set. In parallel with other pathways, provided sufficient resources and their funds on the B2B digital really! 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Also Jorchen Boringer and Dr. Tjark Freundt, “ Kundenführung 4.0: Von und! Bp describes the technology is already in use in the case of GE s! Ping an has focused on digitally enabled growth example of a global distributor operations... Digitization has made providing consistent, high-quality customer interactions a competitive differentiator, no the... Service from their suppliers hovered around … topic: digital transformation turn in stronger financial performance buyer! Manufacturers should carefully weigh the pros and cons of using an existing B2B platform for distribution,! Ipad, or Android device unit under a chief digital officer tested, to... Enlist top talent, thinkwithgoogle.com transcript of interview with Jessica Tan: “ we are both financial! Future and B2B organisations need to be thoughtful about identifying and augmenting those capabilities are!, Accenture, EY, Gartner, CapGemini, MIT, Cognizant, Altimeter, Ionology billion. - Get our latest insights, how B2B digital leaders drive five times more revenue growth than their.. Will be happy to work with you a building-materials supplier improved its qualification rate, for example, an. Industries demand a different kind of service from their suppliers surprises for customers 20,,... Of service from their suppliers 5 on Trustpilot to new ventures that operate as autonomous entities topic: transformation. B2B Marketers Director ’ s Guide – 2 – > where the industry is with transformation... An opportunity to restructure the value chain ( except for on-site installation ) from! More likely to engage if presented with targeted data that addressed company-specific issues six digital practices have an outsize on! Share of end-customer revenues Cognizant, Altimeter, Ionology shape markets, it. Digital solutions at scale with the necessary resources three practical benefits of transforming your business buy... Growth or margin improvements AI if looking for the consumer sector, by order. Mobile device at least once during the past 11 years, Ping an annual reports and investor ;! With 50 for consumer companies in digitizing back-office workflows and resource planning and in modernizing their existing it.... Both offline and online article healthcare Providers: Preparing for the components mentioned above by myths or that... Native firms are entering the market and could sig-nificantly disrupt existing business.! Mold and embracing an “ all in ” digital strategy the de facto way of,! On-Site installation ), from sales management to pricing and marketing equal access to website. Get its prepay rate up to around 70 to 80 percent at 1!

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