B2B merchants navigating the digital economy have a lot on their plate aside from pivoting their services to an online format and much of it has to do with managing this transition, the experience it creates, and growing the business while maintaining existing relationships.
While business often moves much faster than normal life, the digital revolution has put it into virtual warp speed.
In other words, the typical concerns of any business yet with the added complications of a flattened competitive field and amorphous to non-existent best practices.
McKinsey has identified four major ways that B2B merchants can use to not only help them navigate the digital economy but also thrive and succeed.
Modernization of Core Processes
Experts believe that the first step towards adapting one’s business for the new digital economy is to modernize and streamline legacy processes for the new era. Whether this means moving as many core functions online and into the digital space as possible or harmonizing existing structures so that they work more closely together is a question for the individual firm but, overall, the efficiencies gained from ditching legacy systems and embracing new tech should give firms an edge in the online world.
While many B2B merchants have to deal with legacy customers and operations, the new world of hyper-fast response times and bespoke-without-effort customer arrangements will make maintaining these old agreements difficult if not unprofitable. When it comes to working with your clients, find ways to harmonize your changes with their needs but never let someone stand in the way of your company’s progress.
Differentiation in Digital Experience
Once core operations are modernized, firms can then look towards specific ways to enhance and differentiate their digital experience from that of the competition. This will take many forms but, ultimately, needs to respond to the specific needs sets of a firm’s clients. Responding to client needs and concerns faster, more efficiently, and with less input from a human workforce means that you and your team have more time to focus on innovation and iteration.
The third link in McKinsey’s chain for B2B firms that want to pivot into the digital economy is the idea of disruption. While this could come in many forms, the basic idea is that once a firm has modernized and begins the process of customizing its digital experience for customers, it begins to acquire the skills necessary for segment disruption. Disruption, in its simplest definition, means doing things in a way that is completely different from the past – so much so that its apparent advantages give your company a leg up over other firms and even force them to change their behavior as a result. Embracing both innovation and the rewards of the first-mover advantage, disruption could be the key to taking a business to the next level.
Create New Business Formats
After disruption comes iteration and experimentation. McKinsey calls this the “startup mentality.” What this means is that older, more established firms try to adapt the energy and spirit of a startup into their core business. This could be through one-off iterations on successful concepts or “companies” that explore new avenues of business or experiment with new customer segments. The idea here is that legacy firms are better able to execute ideas due to their robust infrastructures and established logistics. A good idea, in this environment, could become the next big-ticket item for a company’s bottom line and all without the risks that startup firms face.
Digital Banking Solutions by Monneo
Monneo has proven over the years as a reliable and secure provider of digital banking solutions to companies operating in the health and beauty sectors.
It is now that we would like to again reveal that the Monneo’s software platform allows a single merchant to access and control multiple Virtual IBAN accounts, executing payments in 130+ different currencies. Such technical functionalities in a business concept are extremely useful in the context of global e-commerce. Our application procedure takes just a few minutes. No physical presence of the client is required. All you need to do is complete our online application form. From there on, our customer support agents will be available to guide you through the process.
The team of Monneo holds an excellent level of expertise and years of experience. If you are interested to learn more please use the contact form below to request any additional information you may need.