Webcast

Why Do B2B Companies Always Make These 3 Same Mistakes?

A debate on whether B2B companies should take unconventional approaches to people, processes, and technology decisions, or stick with tried-and-true methods that leverage internal expertise and proven structures.

Key takeaways

  • Korn Ferry research found that the greatest issues companies face do not come from lack of superior technology but from top-down structures, inability to experiment, limited change management capabilities, risk-averse culture, and inability to work across silos.
  • Only 45% of B2B companies measure e-commerce efforts based on near real-time metrics like sales and clicks. The question is what the other 55% are doing, since monthly planning cycles cannot support the iteration digital commerce requires.
  • Successful e-commerce leaders share four characteristics: a pioneer mentality willing to adapt and take risks, high emotional intelligence to inspire employees, ability to deal with ambiguity, and a preference for challenge over structure.
  • Speed is the only common denominator of success in digital projects. The moment you print a thousand-page RFP, it is already outdated. Companies that adapt faster to market changes and customer behavior win, whether they are traditional or disruptors.
  • Four elements are required for a minimum viable B2B e-commerce launch: B2C-like search and navigation, consumer-grade product display, accommodation for B2B workflows like approvals, and pricing consistency across channels.

B2B companies repeatedly make the same mistakes in people, processes, and technology decisions. The question is whether success requires unconventional approaches that break from established patterns or tried-and-true methods that build on internal expertise and proven structures.

The research on what drives success

Korn Ferry surveyed hundreds of leading B2B companies with successful digital transformations and found that the greatest issues do not come from lack of superior technology. The obstacles are top-down structures, inability to experiment, limited change management capabilities, risk-averse culture, and inability to work across silos.

The research identified four characteristics of successful leaders: a pioneer mentality willing to adapt and take risks, high emotional intelligence to inspire employees, ability to deal with ambiguity, and a preference for challenge over structure. Too often, companies put leaders in charge who lack these characteristics.

On processes, only 45% of B2B companies measure e-commerce based on near real-time metrics. The question is what the other 55% are doing. Monthly planning cycles cannot support the iteration that digital commerce requires.

The debate format

Team Unconventional featured Katherine Monasebian from Stanley Black and Decker, Tim Fabian Besser from German building materials distributor deineBAUSTOFFE, and Alex Graf from Spryker. Team Tried and True included Paul Stubitsch from IBT and Apryl Erickson from HID Global.

Round 1: Sourcing talent for e-commerce

Apryl Erickson argued that complex businesses require internal talent who understand the nuances. Consultants and outside experts take months to ramp up. She shared an example where a CPQ project required extensive knowledge transfer, and product managers complained when they had to repeat the process with new vendors a year later.

Paul Stubitsch agreed that industry-specific knowledge is the hard part. His company brought in subject matter experts for content, search, and marketing, but understanding the nuances of the industry and getting that to surface on the web is where the real work happens.

Tim Fabian Besser argued for external hiring based on three factors: time, opportunity costs, and business model. Teaching motivated people skills that others have developed over years takes too long. If digital revenue streams are core to the future business, you need people with digital expertise.

If the digital aspect of your business is really important, teaching even motivated people a skill within weeks or months where other smart people already have a yearlong learning curve just takes too long.

Tim Fabian Besser, Deina Bosaf

Katherine Monasebian shared her experience as a B2C transplant. The consumerization of B2B is real. E-commerce does not fit the constructs of large manufacturers where precision, long lead times, and efficiency drive operations. The infusion of B2C talent brings the speed and agility that digital requires.

The winning formula has been to get digital ninjas, surround them with the top internal talent, make sure they have the humility to know what made the company great and what they do not know, and the hunger to learn.

Katherine Monasebian, Stanley Black and Decker

The audience voted 52% for external hiring.

Round 2: Processes and reporting structures

Apryl Erickson argued that e-commerce should share developers with IT to avoid rowing boats in different directions. Creating separate teams risks creating a fiefdom rather than alignment.

Tim Fabian Besser disagreed, noting that working on digital products is forward-thinking, customer-centric, and focused on UX. IT work is more internally oriented. His company strictly divided the teams and found it successful because the product team could focus on what mattered to customers.

Katherine Bahamund Monosavian agreed that customer-facing technology is entirely different from back-end systems. The delivery model matters: agile development with MVPs and iteration does not work when business gives requirements to IT and waits a year for delivery. Digital leaders need to manage technology directly.

On physical location, Katherine noted that emerging businesses need time to incubate without antibodies attacking them. Her team is fully virtual, which provides flexibility and access to global talent. April countered that the pandemic taught the value of collocation, though virtual alignment can substitute for physical proximity.

On reporting, Katherine argued that incubating businesses need to report to the CEO with strategic and financial accountability. Once critical mass is achieved, digital proficiency can permeate throughout the company. Paul Stubich reported to an oversight committee that included the CEO.

The audience voted that e-commerce should report through the business side.

Round 3: Technology decisions

Apryl Erickson argued that complex B2B order-to-cash processes require 80% of functionality working well before you can be agile. You cannot get all the way through complex ordering if you do not have critical mass upfront.

Paul Stubitsch agreed, noting that SMB distributors need pre-integrated technology because they lack resources to manage integration of individual tools. That said, if search is not working, they will replace it. The approach is buying largely pre-integrated upfront.

Tim Fabian Besser took the opposite view. E-commerce requires flexibility because you cannot predict what users will do in two to ten years. Traditional RFP processes that take one to two years are far too slow. Open systems with good APIs enable adaptation without massive upfront commitments.

Alex Graf argued that speed is the only common denominator of success in digital projects. The moment you print a thousand-page RFP, it is already outdated. Corporate planning capabilities do not save established companies in digital environments. The only differentiator is adapting faster to market and customer behavior.

You cannot predict market changes or customer behavior anymore. The tools we learned in business administration studies that gave us the impression we can plan everything ahead and mitigate risks are not working anymore in this environment.

Alex Graf, Spryker

The audience voted 52% for temporary or over-time technology purchasing.

The verdict: Unconventional wins, but balance matters

Team Unconventional won all three rounds, though the technology round was nearly tied. The debate revealed several nuances despite the overall verdict.

First, external hiring works best when digital talent is surrounded by internal experts who understand the business. The combination creates a winning formula.

Second, reporting structure matters less than having a seat at the CEO level with real accountability. Whether through business or IT, the key is strategic and financial responsibility.

Third, the minimum viable product for B2B e-commerce requires four elements: B2C-like search and navigation, consumer-grade product display, B2B workflow accommodation, and pricing consistency across channels. Without these basics, launching guarantees failure.

Fourth, speed is the currency that matters most. Companies that cannot experiment, iterate, and adapt faster than competitors will lose share to disruptors who can. The three mistakes are interconnected: wrong people lead to wrong processes which lead to wrong technology choices. Breaking the pattern requires challenging conventional B2B approaches.

Frequently asked questions

Should B2B companies hire externally or promote internally for e-commerce leadership?

The audience voted 52% for external hiring. The unconventional argument holds that B2B buyers are also B2C consumers, and the consumerization of B2B requires people with digital commerce experience who can drive cultural change. The traditional argument contends that complex B2B businesses require deep domain expertise that outsiders take months to learn. The winning formula may be hiring digital talent and surrounding them with internal experts who understand the business.

Should B2B e-commerce report to the business side or IT?

The audience voted for business side reporting. However, practitioners noted that the more important factor is whether e-commerce has a seat at the CEO level with strategic and financial accountability. Some successful structures report through oversight committees that include the CEO. The risk of keeping IT at bay is missing innovations that technologists could bring, like advanced data analysis capabilities.

Should B2B e-commerce teams have dedicated developers or share with IT?

The debate split on this question. The unconventional view argues that customer-facing technology is fundamentally different from back-end systems, requiring agile delivery methods and business outcome focus that traditional IT project management cannot provide. The traditional view holds that shared resources prevent teams from rowing in different directions and create alignment across the organization.

Should B2B companies buy e-commerce functionality upfront or over time?

The audience voted 52% for temporary or over-time purchasing. The unconventional argument is that you cannot predict customer behavior or market changes, so you need flexible systems that can adapt. The traditional argument holds that complex B2B order-to-cash processes require 80% of functionality working well before you can be nimble. Pre-integrated technology reduces the burden on SMB distributors without large IT teams.

Should B2B e-commerce teams be located at headquarters or separately?

The debate found nuance in this question. Emerging businesses need time to incubate without antibodies from the core business attacking them. Separate locations or reporting structures can provide that autonomy. However, the pandemic taught that collocation has value, and virtual alignment can achieve similar goals regardless of physical location. Some teams are fully virtual to access global talent.

What four capabilities are required for a minimum viable B2B e-commerce launch?

First, B2C-like search and navigation that lets buyers find products without knowing part numbers. Second, consumer-grade product display with images and content. Third, accommodation for B2B workflows like passing orders from requesters to procurement for approval. Fourth, pricing and product consistency across channels. Launching with different prices online than in other channels guarantees failure.

Sources & methodology

  1. Korn Ferry B2B digital transformation study (from Billion Dollar B2B E-commerce book)
  2. IDC e-commerce metrics research (45% near real-time measurement)
  3. Gartner B2B digital commerce forecast (30% revenue increase, 20% cost reduction)
  4. Harvard Business Review Why Startups Fail (April/May edition)
  5. Master B2B Un-Webinar debate panel
  6. Spryker
Andy Hoar Andy Hoar
Co-Founder, Master B2B

Andy is a Co-Founder of Master B2B, founder of Paradigm B2B and author of the book Bot2Bot: The New Future of B2B Commerce. Andy is one of the leading global authorities on B2B commerce strategy.

Brian Beck Brian Beck
Co-Founder, Master B2B

Brian is a co-founder of Master B2B, Managing Partner of Amazon agency Enceiba, and author of the book "Billion Dollar B2B Ecommerce." Brian has also been C-level digital commerce executive with two decades of experience.

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