Business Value Innovation in B2B space - Part 1
B2B or the collaborative business partnership is transforming. Most of it can be attributed to great deal of opportunities emerging owing to new business models and economic influences. So B2B as a space in the enterprise business eco-system is becoming the convergence point for Business and IT to jointly create best business value in the global market place.
This transformation (that is going on and will continue in the future) is what this blogging series is going to be focused on. And to make it little more interesting, I’m adding slight complexity here, bring ‘value’ perspective as the core. So net net, we will look into a structure thought process for creating value in B2B space as the transformation is taking place. I believe it will be of great help to senior executives of enterprises that are charged with the responsibility of taking their B2B capability to next level.
To start with, we will spend some time on building the appreciation of ‘value’ itself. As per the value realization model that we use for B2B space, there are 6 core value parameters. These value parameters are the ultimate drivers/needs that typically your enterprise might be after. These value parameters are the business case justifications with which your enterprise will be putting money into B2B programs. These 6 core value parameters are:
- Cost effectiveness of the business
- Ability to Seamlessly Scale to support the Business Growth
- Business Experience Quality for all Stakeholders
- De-risking of Business Continuity and Growth
- Lead-time to Deliver Business Value
- Quality of the business
I will introduce these value parameters briefly into initial few blogs and then I will talk about the 5 key enterprise eco-system platform that will enable the value creation for the enterprise in B2B space in their own capability areas. Subsequent blogs will touch upon the opportunities that each of the enterprise eco-system platforms are providing to create various values. Let me begin by introducing the first value parameter: Cost effectiveness.
Cost effectiveness of the business
Cost effectiveness is possibly one of the major drivers (if not the most important) why your enterprise is going to put money into B2B space. Cost effectiveness refers to minimization of the cost components of the business. Cost could be either a capital expense for new business capabilities or could be operational expenses for sustenance of the existing business eco-system. Cost effectiveness is also linked to ‘value for money’ in simple terms which means money being put into various aspects of business is seen as the worth the value/outcome it is able to generate for the enterprise. In the context of B2B, cost effectiveness equation will focus on bringing down the cost components for the enterprise but I think in the evolving context of business today, cost for the partners to do business with enterprise is also going to be a very important element.
As technology-enabled business collaboration is reaching new heights, it is getting very convenient for the enterprises to collaborate. Entire partner value chain has started big time to bring ‘value demand’ into negotiation considerations from partnership perspective. So essentially when potential business partners of an enterprise consider the partnership opporutnity, cost of doing business will play a very critical role for deciding the nature and scale of the partnership.
Next blog in the series: “Ability to Seamlessly Scale to support the Business Growth”....
