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. Unleash their potential. (Research and Markets) Digital transformation initiatives. They prioritize opportunities according to their potential value and develop a venture portfolio. Meanwhile, 27% would spend over $500,000. Meanwhile, 27% would spend over $500,000. De-risk. They free up cash for investments in data, technology, and talent; they think big, they act fast, and they are prepared to adapt their stance as the market evolves. The average organizational maturity for B2B companies averaged just 27, putting them near the “laggard” range. As of September 2018, Ping An’s top start-ups were collectively valued at more than a quarter of a trillion dollars. We believe we are at a digital inflection point, where B2B sales operations going forward will look fundamentally different from what they were before the pandemic. We review digital transformation frameworks from the world’s top digital transformation consulting companies. In a pilot, a margin increase of up to 50 percent was observed, while no volume was lost. In a new survey of more than 1,700 C-suite executives, we learned that the average … For the … Digital transformation … Digitization has made providing consistent, high-quality customer interactions a competitive differentiator, no matter the channel. The B2B organizations that we work with generally see the swiftest DQ bump by first picking one or two high-value customer segments and mapping their decision journeys in full to understand how these customers buy, what channels they use, what influences their decision making, and what turns them off. B2B leaders are doing things differently. Where will (or could) it come from in the future? Initiatives are less likely to be anchored in customer needs and often falter from insufficient investment. Increasingly, suppliers see digitization as an opportunity to restructure the value chain, especially when it comes to distribution (Exhibit 5). While that might not be surprising—B2B companies, after all, generally contend with a more complex environment, longer deal cycles, lengthy RFP processes, the involvement of many vendors, decision makers, and influencers—comparing the scores of B2B and B2C companies was helpful in order to reveal and better understand those areas where B2B companies could most profitably improve. B2B leaders create an organizational structure that supports their digital transformation. It ’s merely a necessary action that mid-size and big companies should undertake to stay competitive. 1 ning to adopt customer-centric thinking, prompted by the consumerization of health insurance. Press enter to select and open the results on a new page. They are not only rapidly following as their customers are going online, but also dramatically transforming their marketing functions into digital- and data-driven machines that engage … 2019 McKinsey EMEA Data Summit in Barcelona. Effective presales activities—the steps that lead to qualifying, bidding on, winning, and renewing a deal—can help B2B companies achieve consistent win rates of 40 to 50 percent in new business and 80 to 90 percent in renewals.6 Companies that have previously relied on intermediaries take advantage of digital channels to build direct relations with end customers. In our 2016 survey, the rate of success was 20 percent; in 2014, 26 percent; a… cookies, up to five times the revenue growth and up to eight times the EBIT (earnings before interest and taxes) growth of their peers, McKinsey_Website_Accessibility@mckinsey.com, an opportunity to transform the customer experience, improve satisfaction, prevent churn, and reduce the cost to serve, Traditional company, new businesses: The pairing that can ensure an incumbent’s survival, Research by the McKinsey Global Institute, Analytics translator: The new must-have role, Building agile capabilities: The fuel to power your agile ‘body’, Perpetual evolution—the management approach required for digital transformation. During the past five years, Ping An has focused on digitally enabled growth. 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 We have the largest health portal, Good Doctor, in China. Please try again later. Data-driven pricing is among the most common applications in this area. In tests, the iPad tool shortened the selling process by about 30 percent and increased conversion by 8 to 10 percent. Most recently, Ping An has decided to set aside 1 percent of group revenue to finance start-up ventures that operate as autonomous entities. “At McKinsey, digital transformation means two things at the highest level: transforming the core, which is taking what we do today and leveraging technology to do it better, faster, cheaper, more effectively; and new business building, which really is stepping out of the core and creating something that didn't exist. 2. That data helped the company identify which prospects were most likely to buy its products, which resulted in a 3 to 5 percent improvement in win rates. Blockchain technologies come with a wide range of potentials for industries. 3 > The ‘Four Ds’ of Digital Transformation according to McKinsey & Company. Press enter to select and open the results on a new page. Once … B2B marketers who want to move towards digital transformation must first understand the potential impact that several key pillars of digital thinking have on their role. MVP is a version of a new product (or service or process) that allows a company to collect the maximum amount of validated learning about customers with the least effort. Using agile methodology and design thinking, the team reinvented the customer journey and created a seamless online process for ordering, tracking, and query management. perspectives Magazin, January 18, 2018, perspectives.infraserv.com. collaboration with select social media and trusted analytics partners Take the example of a leading manufacturer of agricultural products with annual revenues in the magnitude of $20 billion. The company now controls almost the entire value chain (except for on-site installation), from product design to distribution to licensed electricians. Learn more about cookies, Opens in new … 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 … According to a study by Altimeter, The … The project team identified a total opportunity exceeding $100 million annually. At the Netherlands-based bank ING, for instance, corporate clients have a single point of access to real-time account overviews, customized reporting, and the ability to execute payment and hedging transactions wherever they are in the world.4 Detailed information on the use of cookies on this Site, and … Electricians rate the supplier 4.9 out of 5 on Trustpilot. More than 90 percent of B2B buyers use a mobile device at least once during the decision process,3 Practical resources to help leaders navigate to the next normal: guides, tools, checklists, interviews and more. This approach breaks the digital-transformation process into bite-size chunks that are easier to isolate. If the app flagged that procurement was likely to be engaged, reps could press a button and generate tailored punch lists and other add-ons designed to meet procurement specifications and simplify the RFP process for internal buyers. tab. Transforming B2B organizations to improve digital experience Any customer-experience program should start with an inventory of customer needs, a leadership commitment to governance, … Please use UP and DOWN arrow keys to review autocomplete results. These are the areas in which digital leaders excel and where B2B companies can do better. Digital-ready B2B brands are more resilient and confident about their future prospects. 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.. By focusing on the digital practices that our research shows to be most tied to customer and financial success, B2B players will be able to create and sustain significant long-term value. > Whether ‘transformation’ is a realistic short-term objective. 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 … NAVIGATING THE DIGITAL B2B LANDSCAPE Right now, digital transformation in B2B is … If you would like information about this content we will be happy to work with you. 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. They often treat overall strategy and digital strategy differently. One telecom company, for example, wanted to shave its traditional product-development time—more than six months from start to trial—to include additional weeks of training and internal pilots. 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. Using internal benchmarks and outside economic research, account executives developed concrete business cases that described the specific returns CEOs could expect from increasing their companies’ wind-energy usage, right down to illustrating which geographies and properties offered the optimal locales for turbine placement. We believe that it's a requirement for long-term success. If you would like information about this content we will be happy to work with you. 2. 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. At an electronics manufacturer, for instance, marketers could tell when a prospect opened an email, but their customer-relationship management systems had no way of tracking how long a customer spent reading that email or what action they took next. People create and sustain change. B2B buyers who interact with multiple channels, such as field sales, online web stores, and so on, spend more than those who only purchase from a single channel. Our research shows that six digital practices have an average DQ of,. To optimize commercial functions and achieve sustainable sales growth or margin improvements only in! 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