CHALLENGE THINKING. LEAD CHANGE
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Latest Trends in B2B E-Commerce Strategies and Tech Investment
Andy Hoar & Peter Sheldon June 2, 2015 © 2015 Forrester Research, Inc. Reproduction Prohibited
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Andy Hoar Principal Analyst © 2015 Forrester Research, Inc. Reproduction Prohibited
Peter Sheldon VP & Principal Analyst 3
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Indy 500: Start vs. Finish Start 30
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US B2B Is More Than 2X The Size Of B2C $780B
$334B Source: Forrester Research US Online Retail Forecast, 2011 To 2016, Key Trends in B2B eCommerce for 2013 © 2015 Forrester Research, Inc. Reproduction Prohibited
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US B2B eCommerce: $1.1T By 2019 $1.1T
$480B Source: Forrester Research US Online Retail Forecast, 2011 To 2016, Key Trends in B2B eCommerce for 2013 © 2015 Forrester Research, Inc. Reproduction Prohibited
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B2B eCommerce Accelerators q Competition (direct and online-only) q Need to show ROI with measurable transactions q Compelling new uses cases (e.g. mobile) q Cost savings arguments q Globalization drivers
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B2B eCommerce Decelerators q No explicit eCommerce leadership q No explicit C-level support q Heavy back-end integration q Channel conflict
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B2B buyers already use the web to research products
74% research half or more of their work purchases online
Base: 126 B2B buyers
Source: Q2 2014 Forrester/Internet Retailer B2B Buy-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
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B2B Buyers Expect To Buy More Online
56% expect to make
30% make half or
more of their work purchases online today
half or more of their work purchases online in 3 years
2014
2017
Source: Q2 2014 Forrester/Internet Retailer B2B Buy-Side Survey © 2014 Forrester Research, Inc. Reproduction Prohibited
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74%
Buying from a website is more convenient than buying from a sales representative.
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93%
Prefer to buy online when they’ve decided what to buy.
Source: Q1 2015 Forrester/Internet Retailer B2B Buyer Channel Preferences Survey (n=219) © 2015 Forrester Research, Inc. ReproducEon Prohibited
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More Self-Serve B2B Buying Experiences
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B2B Matching CompeFtors…Well Behind Amazon …
…Your B2B compeFtors 48%
BeUer
39%
Comparable Worse
14%
BeUer
Comparable Worse
17% 36% 48%
Note: Numbers may not total 100% due to rounding Base: 92 B2B eCommerce professionals Source: Q4 2013 Global B2B eCommerce Online Survey done in partnership with Internet Retailer © 2013 Forrester Research, Inc. ReproducEon Prohibited
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Becoming World Class
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Investments in B2B commerce technology are on the rise © 2015 Forrester Research, Inc. Reproduction Prohibited
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3/4’s of B2B firms are already upgrading their eCommerce platform or plan to within 3 years
Source: Forrester/Internet Retailer Q4 2013 Global B2B Commerce Online Survey © 2015 Forrester Research, Inc. Reproduction Prohibited
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By 2019, US firms will spend $2.1b on licensing commerce technology Commerce Platform Spending (US$ millions)
Source: Forrester Business technology ForecastView © 2015 Forrester Research, Inc. Reproduction Prohibited
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Manufacturing & Wholesale are driving this growth US Commerce Software Platform Spending (US$ millions) $2,500 Education and government
$2,000
Healthcare Finance and insurance
$1,500
Utilities and telecommunications Media, entertainment, and leisure Business services
$1,000
Wholesale trade Retail $500
Manufacturing Consumer products
$2013
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2019
Source: Forrester Business technology ForecastView © 2015 Forrester Research, Inc. Reproduction Prohibited
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By 2019, B2B firms will spend more on commerce technology than online retailers do
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Platform Trends
Replatform initiatives top the priority list
Source: Forrester/Internet Retailer Q4 2013 Global B2B Commerce Online Survey © 2015 Forrester Research, Inc. Reproduction Prohibited
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Commerce is just part of a broader digital experience delivery program for B2B firms
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Today most B2B firms are upgrading to the full “Suite”
PIM is a foundational necessity for B2B firms
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Many B2B firms integrate eCommerce and WCM
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B2B firms are showing an increased interest in SaaS
Source: Forrester’s Business Technographics Global Software Survey, 2014 © 2015 Forrester Research, Inc. Reproduction Prohibited
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The benefits of SaaS for B2B commerce Merchandisers are in the driving seat – no operational dependencies on IT Faster rollout in international markets Regular, vendor led “Push” upgrades IT can focus on our ERP upgrade Marketplace of “plug and play” extensions Simpler TCO – no ‘hidden’ internal costs Business can proceed without needing IT CAPEX project funding Source: Forrester’s Business Technographics Global Software Survey, 2014 © 2015 Forrester Research, Inc. Reproduction Prohibited
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B2B eCommerce is an extension of B2C
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eProcurement
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Guided selling
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Order entry & requisitions
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Organization hierarchies
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Dealer management
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Contract management
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Budget/spend management
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Configure/Price/Quote (CPQ)
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ERP Integration
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Contract pricing
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Approvals workflow
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Policy management 33
B2C
B2B
Many firms are consolidating their B2B and D2C technologies
Thank you Andy Hoar
[email protected] @andyhoar1 Peter Sheldon
[email protected] @peter_sheldon
forrester.com
