The B2B External Environment
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This document discusses the business-to-business (B2B) environment including key concepts like value networks, industrial distributors, value added resellers, original equipment manufacturers, and how the macro environment, demographics, competition, product/technology life cycles can impact organizations operating in B2B markets. It also references the bullwhip effect and different adopter categories in technology adoption life cycles.
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The B2B External Environment
- 1. The B2B Environment Presented by Lindsey Fair
- 4. value added resellers (VARs)
- 7. publics
- 12. product life cycle (PLC)
- 13. technology adoption life cycle (TALC) aka Technophiles aka Visionaries aka Pragmatists aka Conservatives SalesfromNewAdopters/Period Time
Editor's Notes
- innovators – had larger farms, were more educated, more prosperous and more risk-orientedearly adopters – younger, more educated, tended to be community leadersearly majority – more conservative but open to new ideas, active in community and influence to neighbourslate majority – older, less educated, fairly conservative and less socially activelaggards – very conservative, had small farms and capital, oldest and least educatedThe Early MarketTechnology enthusiasts (techies) & VisionariesThe Chasmthere are few if any remaining visionaries to sell to but pragmatists are not yet ready to adopt. Pragmatists do not see a complete solution to their problem, plus there is no group of references that have formed that they trust. In addition, they want to see the solution working live at customer sites. Revenue growth ceases or even recedes in the Chasm. Early MajorityBy their nature, pragmatists are reluctant to adopt new technology and prefer to follow the herdUp to this point, late pragmatists have delayed their adoption, waiting for the technology to gain a strong record of accomplishment and enough references from people they trust. These pragmatists finally shift en masse to the new infrastructure, and they tend to go with the market leader.Late MajorityConservatives don't see value in technology just for technology's sake. They tend to stay out of the market as long as they can, finally making the leap because they fear being left behind. LaggardsTotal Assimilation marks the end of the TALC. Even though the TALC is coming to a close, Total Assimilation is not the end of the product life cycle. Just as automobiles were in the early majority in the 1930s and were the majority following World War II, they are by no means at the end of their market. When the TALC and the PLC are superimposed on the same grid, Exhibit 2-7students should be able to see that, as the product becomes mature, the number of new users declines while the PLC shows that sales continue (for a period) to previous adopters.