They should be prepared to reinvent the way they serve their customers, either by redesigning the customer experience or establishing a direct channel. Use minimal essential Digital transformation … To better understand how both customers and sellers are reacting, we launched a survey of B2B … 1 our use of cookies, and We use cookies essential for this site to function well. Please use UP and DOWN arrow keys to review autocomplete results. We strive to provide individuals with disabilities equal access to our website. tab. De-risk. 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. McKinsey is a thought leader when it comes to digital transformation. DQ leaders, on the other hand, strive to create an organizational structure that supports their digital transformation. 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 More effective targeting insights helped the company increase sales by 8 percent. And while sales teams are working harder to navigate deals that stretch longer and involve multiple influencers and buyers, they often lack (or are unable to apply) the analytics needed to manage the sale profitably, understand who the real decision makers are, and what sorts of outreach might prove persuasive. The start-ups are given the independence they need to pursue promising opportunities in an agile, flexible fashion and to enlist top talent. It is used both to identify Ping An health-insurance policy holders at hospitals and to speed up online applications for loans (“iLoans”). Many B2B customers now expect the same kind of convenience, speed, flexibility, and transparency they are used to from shopping on popular consumer platforms. As a result, top-quartile B2Bs across sectors have an average DQ of 44, compared with 50 for consumer companies. Jordan Blum, “BP gets into the startup biz with its new Lytt company,” Houston Chronicle, May 8, 2019, houstonchronicle.com. For instance, Chris guided a large bank through a digital and agile at-scale transformation, has led the DevOps for a number of leading banks in Europe, and helped build a new digital business for a flower distribution company by reinventing how flowers and plants are sold B2B using a digital … Key features included configuration-based price benchmarking, price-trend analysis, prescriptive analytics to generate competitive pricing recommendations across B2B2C channels and B2C channels, and automatic weekly updates of up to 200,000 price points for up to 20,000 products. McKinsey Sales & Channel Management, “How we help clients.”. That targeted, data-driven campaign helped Vestas achieve a ten-times improvement in conversion rates. Overcoming pandemic fatigue: How to reenergize organizations for the long run, What’s next for remote work: An analysis of 2,000 tasks, 800 jobs, and nine countries. Digital-ready B2B brands are more resilient and confident about their future prospects. Key success factors: In our experience, corporate start-ups increase their odds of success when they have the following freedoms: In addition to the strategies and skill sets that are specific to the different archetypes, our analysis of top digital performers in B2B has revealed four enablers that help create strategic advantages, de-bottleneck digital transformations, and deliver impact at scale (Exhibit 6): For manufacturers and providers of services, digitization is at least as much an opportunity as it is a threat. More than 90 percent of B2B buyers use a mobile device at least once during the decision process,3 The authors would like to thank Pamela Simon and Marie Glenn for their contributions to this article. The present working paper summarizes selected findings of the macro-economic simulations conducted as part of the study "Shaping the digital transformation in Europe", which assess the potential impact of disruptive digital technologies on the economy and society in the EU and its member states. In this archetype, companies use their understanding of the industry to develop new ventures, disrupt their own existing business models, and unlock new revenue streams, typically using a stage-gate financing approach. The battle against COVID-19 start digitizing core processes before they experiment with new business models in... A result, top-quartile B2Bs across sectors have an average DQ of 44, compared 50... 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