Whether you’re a mom-and-pop plastics manufacturer that’s been around for 50+ years or a multinational distributing giant, chances are that your business looks a little different today than it did 10 years ago.
A global economy has interwoven supply chains. New technologies have opened doors some would’ve never thought possible. And rapidly evolving consumer preferences have forced many businesses into a game of catch-up. But many business-to-business (B2B) sellers are lagging behind their direct-to-consumer (DTC) counterparts when it comes to adoption of new technologies.
While some sellers continue doing business with fax machines and filing cabinets, their more digitally-mature competitors are blazing past, paving the way to the future with new operational and institutional technologies that are improving both the buyer and seller experience.
"The way B2B buyers shop is changing, and B2B merchants need to adapt. Buyers are turning to online channels to research, compare, and purchase products. B2B merchants need to have a strong online presence and offer seamless omnichannel shopping experiences, across the entire buying lifecycle, from purchase to service, to keep buyers loyal or risk losing market share", states Lance Owide, B2B General Manager, BigCommerce.
But what makes one company more digitally mature than another? Digital maturity is more than a simple assessment of how many tools a company uses or how fast a sale can be processed. Digital maturity is a measure of digital integration through all aspects of a company’s workflow.
Throughout this article, we’ll review the different stages of business digital maturity — and some key opportunities for growth. We’ll then look at Nine Keys to Success, which provide a more detailed viewpoint into technological integration. Then, we will take all the information you’ve learned about your business’s digital maturity and show you how you can create a solid roadmap to future success.
How is Digital Maturity Measured
Digital maturity is a measure of how integrated digital processes are in your business, how technology aligns with overall business strategy, and how the people within your organization see technology impacting day-to-day operations. A recent report by Accenture found that 72 percent of businesses that actively assess their digital maturity levels experience accelerated growth compared to those that do not engage in such evaluations.
We’ve broken down B2B digital maturity into two aspects: a business’s digital maturity score and the Nine Keys to Success. The digital maturity score breaks down maturity into three specific areas:
- Digital processes. Your business’s adoption of digital technologies for internal operations.
- Technology alignment. The rate at which data can be shared between departments of your organization.
- People. Measures the culture of digital or technological innovation within your organization.
Across each of these areas, businesses should measure themselves against our Nine Keys to Success, which measure innovation, leadership, budget, technology, data, reporting, communication, process optimization, and internal operations.
The Keys to Success are key aspects of a digital maturity score. Digital processes could include innovation, reporting, and process optimization. Technology Alignment could include technology, budget, and data. While People could include leadership, communication, and internal operations.
Using these two scales, your business can identify its challenges and opportunities, then create an action plan to grow their business.
The Luddite
Luddites have a general lack of awareness or acceptance of the benefits of technology, and are resistant to adopting new technologies.
- Digital processes.
- Most business is still done on paper.
- Technology alignment.
- Little to no online presence or digital marketing efforts.
- Limited employee understanding of how digital technologies work, or how digital technology can improve workflows and the business overall.
- People.
- Little to no opportunity for change or digital growth.
- "This is the way we’ve always done business and always will” mindset.
An example might be a mom-and-pop manufacturer that has been doing business with the same five or six local companies for sixty-plus years. They see no need to introduce any technology other than the fax machine they purchased thirty years ago, and the four or five computers still running Windows 98. As the old saying goes: “The best time to plant a tree was 20 years ago. The second best time is today.” The fact that you’re reading this article already shows that you suspect your business could be doing more to grow. Now take that momentum and start advocating for some change.
Laggards
Laggards may be generally aware of digital technologies and their benefits, but have no real plan in place for how to adapt to the changing digital landscape.
- Digital processes.
- Beginning to explore digital solutions, but no real implementation strategy.
- Using manual processes and spreadsheets for managing back-office operations.
- Technology alignment.
- Basic online presence with minimal use of digital marketing or social media.
- People.
- Few digital champions within the company, and little interest in advancing to full potential.
An example would be a paper distributor relying solely on phone orders and manual processing that lacks an online ordering platform, data analytics, or efficient inventory management systems. Often, the biggest hurdle for digital innovation comes from the top. A “this is how we’ve always done it” mindset can be an asset in some instances, but it can also hamper innovation, often at the expense of success.
Many individuals who have been with a company for a long time — sometimes since its founding — may feel like they’re being pushed out or moved aside as companies adopt new technologies. It’s imperative that these individuals both understand and accept that new technologies aren’t here to push anyone aside. Instead, technology is here to help improve operations and make everyone’s day-to-day easier, and ultimately improve sales.
One thing is for certain, though. You have to start somewhere, and deciding that you need to modernize is often the first step.
Where do you go from here? It can often be as simple as digitizing order management or creating a website for your business. While your digital transformation won’t be done tomorrow, you should rest assured that you’re taking a step in the right direction.
Followers
Followers may be experimenting with various digital tools, but face challenges integrating new technologies with legacy systems due to technical limitations with existing systems and internal teams.
- Digital processes.
- Experimenting with digital tools and processes.
- Pilot programs to test functionality and integration.
- May be using rudimentary digital tools to manage back-office operations.
- Technology alignment.
- Basic online functionality.
- Some social media presence and digital marketing efforts
- People.
- Teams are working to build organizational effort and willing to adopt new technologies
An example could include a manufacturer that offers a basic online product catalog but lacks features like secure self-service portals for customer accounts, automated order processing, or integration with customer relationship management (CRM) systems.
If your organization is already aware of its digital shortcomings, then chances are you’re not sure how to proceed down your maturity journey.
Instead of worrying, find an ecommerce expert who can help accelerate your digital transformation. Whether that individual is a B2B consultant or someone brought on full-time depends on your business needs, but having someone who knows the technology — in addition to your business — can be a huge asset on your maturity journey.
The Middle Ground
The Middle Ground is often where most B2B businesses sit when it comes to digital maturity. While they have begun integrating digital tools into their day-to-day operations, individual teams are often siloed in their technology use, making it difficult to scale as an organization.
- Digital processes.
- Growing comfort level with digital tools and solutions.
- Some implementation of digital solutions in a few business areas.
- Beginning to explore SaaS and cloud technology (ERP, OMS, IMS, etc.) for managing back-office operations.
- Technology alignment.
- Interactive website with some online functionality.
- Targeted digital marketing strategy.
- Some data gathering, but little ability to analyze and act on insights.
- People
- Leadership sees the benefit in digital advancement, but change is often challenging due to legacy platforms or inter-organizational silos.
This could entail, for example, a wholesaler with a basic B2B ecommerce platform, but limited investment in marketing automation tools or personalized customer experiences for different business segments. Investment is key for a brighter future.
There are two schools of thought when it comes to technology. The first: “We don’t need more tools, we just need to work with what we have, better.” The second: “We need more tools to help us work smarter, not harder.”
While neither is inherently right or wrong, you will need tools to integrate your systems and start gathering the right kinds of data to make them work. This means an investment in the right tools for your needs. What if they’re not the right tools? Well, then you’ll just have to work through growing pains.
Will this CRM platform really be the one that finally solves your problems, or will you switch to another in a year’s time? There’s only one way to find out: do your research and take the leap. No business’s digital transformation is perfect.
There are going to be hiccups, and there are going to be failures, but that doesn’t mean that you’ll never find success. The Middle Ground is often the most challenging point for businesses to get through in their digital transformation, and often where many businesses stall. Working through these growing pains can and will give your business a competitive advantage in the long run.
The Leader
Leaders see wide-scale adoption of digital technologies in their everyday operations. While processes and departments are integrated, there are still some barriers to data gathering that slow down analytics and the organization’s ability to act quickly upon the data they gather.
- Digital processes.
- Seamless user experience across all digital channels.
- Omnichannel marketing and selling strategy.
- Wide-scale use of digital technologies across the organization
- Technology alignment.
- Unified data gathering and analytics strategy across the organization.
- Data is driving many — if not most — of the decisions within the organization.
- Many automated workflows between departments.
- People
- There is a culture of innovation throughout the organization and a unified approach to technology adoption.
A distributor with a robust B2B ecommerce platform featuring self-service options, secure payment gateways, and integration with advanced inventory management systems. They may also offer value-added services like customized logistics solutions.
While the Middle Ground may be the most challenging point for your business, the Leader position may be the hardest point for you to see beyond. Asking yourself how your business can do better may draw a blank. You may not be sure how you can go that extra mile and finally become the visionary in your field.
The answer isn’t always easy. That’s why it may be beneficial to bring in outside help to find some of those gaps in your business’s roadmap. Find out where or how data might be falling through the cracks. Listen to unsung voices within your company, and reward those who strive to innovate. While it may seem like you’ve done all you can do, there is always another rung on the ladder to success.
The Visionary
Visionaries have experienced full digital maturity with widespread application of digital technologies and processes. They are consistently seeing the operational benefits of digital integration, and have a significant competitive advantage against other businesses in their space.
- Digital processes.
- Always on the cutting edge of technology and innovating processes.
- Exceptional customer experience across all touchpoints, offline and online.
- Technology alignment.
- Integrated ecosystem with all departments sharing data in real-time.
- Always finding time and space to try new things and integrate them in with existing, tested frameworks.
- People
- Constant digital innovation is embedded in the company’s core.
- The company is viewed as a digital leader among its peers.
A manufacturer that utilizes artificial intelligence (AI) for demand forecasting and automated supply chain management. They might also offer customized product configurations and data-driven insights to sell to their B2B customers.
The difference between a Leader and a Visionary may not be immediately clear. The main difference is that Leaders need to be reminded to ask questions, to innovate, to find those new opportunities. Visionaries, on the other hand, do it intuitively. They are always on the lookout for the latest and greatest, and aren’t afraid to fail along the way.
Customer Example: MKM Building Supplies
BigCommerce customer MKM Building Supplies is a visionary company that wanted to truly transform their operations. Putting their digital transformation into our Digital Maturity Framework, we can see the following:
- MKM had a clearly defined, data-driven B2B digital strategy focused on customer segmentation, personalized experiences, and frictionless online ordering.
- MKM utilized a composable commerce architecture, which allowed them to integrate best-in-breed B2B ecommerce functionalities (product information management, customer portals, marketing automation) to create a highly customized and scalable platform.
- MKM fostered a culture of continuous learning and innovation. They invested heavily in training their employees on the latest B2B digital technologies, and empowered them to leverage data insights to improve customer service and product recommendations.
This visionary B2B company is seen as a leader in the industry. Here's how their approach might be perceived by the market:
- Their data-driven, composable commerce platform allows them to offer a hyper-personalized buying experience for different customer segments, exceeding what traditional B2B ecommerce platforms can achieve.
- By leveraging data analytics to anticipate customer needs and personalize product recommendations, they build stronger customer relationships and loyalty.
- Their commitment to continuous learning and a composable architecture allows them to quickly adapt to changing B2B customer needs and industry trends.
MKM Building Supplies transitioned from a traditional model to a composable ecommerce platform. Their experience demonstrates the significant impact this approach can have on sales, customer satisfaction, and overall business growth. This visionary example takes that concept even further, showcasing a company that not only implements the technology but also fosters a data-driven culture and continuous improvement mindset.
By following this approach, B2B companies can position themselves as true leaders in the digital age, attracting investment, talent, and most importantly, loyal B2B buyers.
