What does real digital transformation look like in the B2B world?
It’s a question often obscured by buzzwords and hype. In a recent webinar, IDC’s Heather Hershey and OroCommerce’s Aaron Sheehan cut through the noise, offering practical insights, real-world stories, and a candid look at the challenges and opportunities businesses face.
Their conversation provided a much-needed dose of clarity, revealing the human side of digital transformation and the essential elements of success.
Let’s recap a few of the interesting topics they covered.
The Unexpected Rise of On-Premises Solutions
“Believe it or not, on-premises solutions are growing faster than cloud deployments,” Heather revealed. In an age where cloud computing seems to dominate every tech conversation, this might sound counterintuitive. Yet, the data tells a different story.
So, what’s driving this unexpected trend? Heather speculated that B2B organizations play a significant role. “B2B companies often prefer the control and security that on-premises solutions offer, especially when dealing with complex supply chains and sensitive data,” she explained. It underscores a broader theme: in B2B digital transformation, one size doesn’t fit all.
CEOs at the Helm of Digital Transformation
Heather emphasized that digital transformation isn’t just for the IT department; “It’s a strategic imperative led by the C-suite.” Her research shows 56% of CEOs are pushing modernization, but 44% admit it’s tough to stay on course.
A sobering example? Heather recounted a ransomware attack targeting the outdated systems of a third-party logistics provider: “The fallout was massive—not just for them, but for everyone relying on them.”
The key takeaway, as Aaron reinforced, is the importance of continuous system updates and improvements: “You can’t just ‘set it and forget it’… It’s ongoing.”
The AI Adoption: High Hopes, Mixed Results
Did you know that 98% of CEOs consider AI a priority, yet only 14% report successful AI rollouts after proof of concept?
Challenges abound: inadequate infrastructure, high costs, lack of skilled developers, and poor coordination between IT and business lines.
Results of GenAI rollouts
Source: Future Enterprise Resiliency & Spending Survey Wave 4, IDC, April, 2024. N.A = 228
Aaron shared OroCommerce’s pragmatic approach to AI. “We’re focusing on applications that enhance efficiency without replacing the human touch,” he said. “For example, our AI SmartOrder feature automates the processing of purchase orders received via email. It reduces errors and frees up staff for more meaningful interactions.”
Heather agreed, adding, “It’s about leveraging AI to handle the repetitive tasks, allowing your human talent to focus on what they do best.”
Composable Commerce: Solution or Buzzword?
Shifting gears, the conversation moved to the topic of composable commerce. Aaron questioned whether it’s becoming just another industry buzzword. While he acknowledged the merit in building systems with interchangeable components, he cautioned against viewing it as a cure-all.
“The real value comes from aligning technology with business objectives,” Aaron pointed out. “If your systems don’t interoperate effectively, composability becomes just another empty term.”
Heather agreed wholeheartedly. “We have to avoid the trap of adopting technology for its own sake,” she added. “It’s essential to focus on practical solutions that address real business needs.”
Recommendations for the Road Ahead
Heather concluded with actionable advice for B2B companies navigating digital transformation:
- Invest in Future-Proof Technology Today: Choose platforms with robust features and flexible data models that can integrate with other enterprise applications without extensive customization.
- Human-Centric AI: Leverage AI to enhance human experiences, not replace them. Focus on automating repetitive tasks to free up staff for more valuable interactions.
- Continuous Assessment: Regularly refine systems, processes, and workflows. In the fast-paced digital landscape, stagnation is regression.
- Prioritize Data Security: With the rise of AI comes an increased risk of cyberattacks. Proactive security measures are non-negotiable.
Connect and Continue the Conversation
Both Heather and Aaron are open to further discussions. You can find them on LinkedIn to dive deeper into these topics.
Curious to hear more from Heather and Aaron?
Catch the full conversation on B2B digital transformation in our on-demand webinar.
