This document discusses how B2B companies can advance their e-commerce capabilities. It notes that B2B e-commerce is growing rapidly and customers now expect B2C-like experiences. However, many B2B companies still lack resources and see e-commerce as a low priority. The document recommends that companies focus on the user experience, enable their reseller networks, and find niche areas as good first steps. It also advises analyzing internal structures and balancing the needs of direct and indirect sales channels to mitigate conflicts during the transition to more customer-centric e-commerce.

1. Conquering the B2B Commerce Challenge:
Stop Navel Gazing and Get Out of Your Own Way
Mike Chuma, Director of Global Product Management
Digital River, Inc.

2. Omphaloskepsis
noun ˌäm(p)-fə-lō-ˈskep-səs

3. navel gazing
Source: some proud parent posting to the “interwebs”

4. B2B is the Next E-Commerce Frontier …
Globally, Goldman Sachs predicts nearly $1 trillion in e-
commerce transactions by 2013*
Many B2B companies project e-commerce will comprise 50% of
total sales**
In the U.S., B2B e-commerce is growing by over 34%
compound annual growth rate**
*Source: JP Morgan Chase (Goldman Sachs) “Nothing but Net: 2011 Internet Investment Guide,” January 3, 2011
**Source: Forrester “B2B E-Commerce: Going From Surviving To Thriving By Adopting Proven B2C Principles,” May 1, 2012

6. Business Buying is Changing…
Technologies Enterprises Business Technology Selection
= = =
more independent shifting stance centrally controlled
and robust
Market Driven / User Controlled

7. “The way I interact with a large corporation in a B2B
relationship has to keep pace with the way I can view
product and research on sites like Amazon.com.”
- Andrew Christmann, Gartner Blog Respondent
7

8. B2B Customer Expectations are Changing…
+70% of B2B influenced by B2C
B2B eCommerce Trends, Endeca Survey for eCommerce, 2011

9. B2B Customer Expectations are Changing…
20% said online was more influential
B2B eCommerce Trends, Endeca Survey for eCommerce, 2011

10. keeping up with your customer …
The Stages Of B2B E-Commerce Maturity
organizations still
determining their strategy
few Best Practices
B2C driving B2B innovation
June 2012, “Evaluating Your B2B E-Commerce Development”

11. “We’re still convincing people in our own company
about the value of selling online.”
- Director of E-Business, distributor
Source: Forrester Research, “Evaluating Your B2B eCommerce Development”; June 21, 2012 11

12. What’s holding you back?
1 lack of resources
2 budget constraints
3 requires 1:1 selling
4 not management priority
Question: What are the top three major obstacles to advancing B2B e-commerce in your company? (Check as many as three).
Source: B2B magazine: B2B e-commerce Barometer, August 2011

13. navigate
your
Me
channels
(mildly concerned…)
13

14. Enabling the Channel Ecosystem
Direct to Buyer
Reseller Enablement
Long Tail Channel
Enablement

15. go direct first…
> focus on user experience
> subscriptions and renewals
> find your niches

16. Transition to Customer Centric Capabilities Framework
Customer
Prospect Sales Post-Sales
Acquisition
• Contextual marketing • Product reviews • Product configurators • Customer support
integrations
• Catalogue management
• SEO • Search and display
• Pricing (volume, tiered) • License renewals
• SEM • Social media
• Product recommendations • Maintenance renewals
• Loyalty management • Robust email
• Product reviews
• Complex subscription
• Partner marketing types and models
• Partner portals
• Partner sales management

17. B2C vs B2B: Core Capabilities
B2B payments: line of credit and PO CRM integration (salesforce.com)
Enhanced estimates Buyer management and hierarchy
Reseller pricing and discounts Advanced eligibility management
Partner, reseller, distributor and key Advanced pricing and promotions
account stores

18. mitigate channel conflict
18

19. “Whereas, before we had a tough relationship
with sales, we work cooperatively with them now.”
- Director of E-Business, multi-channel company
Source: Forrester Research, “Evaluating Your B2B eCommerce Development”; June 21, 2012 19

20. balancing
act
Photo courtesy of Bob Estes
20

21. Tips to Manage the Shift
Determine your revenue and reseller Find an internal champion
landscape
Define where the “power” resides Find your “channel champion”
Analyze, analyze, analyze Know your current technology
ecosystem and it’s future
Perception is reality Be aware, be sensitive
Build your business case so its parts can
act independently
21

22. Things to remember…
• B2B e-commerce market is the next frontier
• B2B buyer behavior is evolving
• When managing channel shift stay focused
• Mitigating channel conflict requires balance, analysis and
engagement
22

23. Q&A
Mike Chuma
Director, Global Product Management
Digital River, Inc.
mchuma@digitalriver.com
mobile. +1.952.769.7101
twitter. @mchuma
LinkedIn. /in/mikechuma

24. who’s good….
24

25. focus on user experience
Circa 2002 Circa 2012
Source: “Conquering the B2B E-Commerce Challenge”, Digital River Whitepaper Series, February 2012

26. focus on user experience

27. focus on user experience

28. enable your resellers

29. focus on a niche