B2B eCommerce Implementation Challenges
Are we getting anything with B2B eCommerce Implementation?
Let us first define what B2B eCommerce & it,s challenges. Business-to-business (B2B) is a transaction process between one business and another, such as a wholesaler and retailer. Transaction happens in the supply chain. Where one company will purchase items from another to be used in the manufacturing process.
B2B E-Commerce challenges
Late in 2018, the B2B e-commerce market exceeded $1.134 trillion—above the $954 billion it projected for 2018 in a forecast released in 2017. That’s about 12% of the total $9 trillion in total US B2B sales. It is expected this percentage to climb to 17% by 2023.
According to PMI, The PMI Project Management Fact Book, Second Edition, 2001. The U.S. pays $2.3 trillion on projects every year, or one-quarter its total domestic product, and the world as a whole spends nearly $10 trillion of its $40.7 total product on projects of all kinds.
Butler, Steve, “IT Spending,” Analyst Views, February 2004 says, worldwide IT spending continues on growing, and Forrester Research predicts that U.S. IT spending will grow by another 5.7% in 2005, to reach $795 billion.
In 2003, the average senior project manager in the U.S. earned almost $90,000 per year, and the average Project Management Office (PMO) Director earned more than the average Chief Information Officer ($118,633 vs. $103,925). (PMI, Project Management Salary Survey, Third Edition, 2003)
B2B eCommerce businesses are enjoying 12% cost advantage for picking, packing, shipping, transportation and logistics, and 25% for most companies. That is a huge cost disadvantage.
Companies find that despite a heavy investment in B2B eCommerce like adding web shopping carts and stores, 95% of their B2B customers use manual processes that include email, fax, and phone call, which increases the costs per transaction to over $16 per sales order. Manual costs have many other disadvantages, and employees are reduced to data checking, data entry, and verification. 5% of companies have found that their clients are using their B2B eCommerce platform.
New technologies integration to digital surroundings is closely connected to the growth of any business. However, the robust implementation within business systems sometimes is a big challenge.
A lot of eCommerce businesses encounter the same challenges when choosing new technology. Let us talk about all the difficulties faced.
Our clients come to us asking about the latest technologies, and their most significant interest is to know which one will be worth choosing and which is not. After that, they want to know the most dependable way to integrate that new technology into the current system they are using.
In helping many clients with these, we have collated as many as we could all the challenges they encounter. Most of them pass through the same problems and have to choose various viewpoints to succeed.
Here are Common Problems and Challenges:
Over 31 percent of IT projects were canceled before completion, costing over $81 billion in the U.S. alone.
IT projects have a terrible track record.
A 1995 Standish Group study (CHAOS) found that only 16.2 percent of IT projects were successful in meeting scope, time, and cost goals.
Choosing new technology for technology’s sake( Finding the perfect software)
There are a lot of ERP systems possible. It can be difficult deciding which one to advance in or what is best for the business. Many are overwhelmed with this new thing. Not even thinking if it is a perfect fit for whatever process they have in their business. This creates problems for them like when they realize that what they got is not working as expected. This then leads to expense issues as, for some, there are termination charges plus another out of pocket in getting a new one.
Not giving importance to the users needs Creating a Vision
The reason, why businesses choose to embrace new technology, is to level up and have growth. Problem faced here is that the software they have chosen is just a replication of what they currently use. They seemed not to have good planning to understand what they truly need to know which best software fits their needs. Poor planning like not having a robust goal, how is it really going to be used? They end up wasting expenses as it did not add anything to what they already have.
Right implementation and integration of new technology | eCommerce challenges
To enjoy the advantage of new technology has to offer is what some thought it just is. That just by buying new technology, it gives them the upper hand. They miss the part that proper incorporation into the system they have is essential And not having training and doing it on their own brought a lot of problems like errors and confusion.
Commitment from managers | eCommerce challenges
Some of the business’s higher-ups are not fully committed to the implementation of the new software. They do not cooperate with the key person to know that they have to be fully involved, and are essential in making decisions. The system can only be as good as those who are using it. Admittedly this wasted a lot of their software budget.
Poor staff training for the new technology | eCommerce challenges
Another concern is that there is no planned training for their people. They did not add it up to the costs of implementing their new technology. . Having a new technology requires training for those who will use it. Since not everyone is a fast learner and good at technology. This leaves too many mistakes from the first time users, while some are costly since training is expensive.
Not Monitoring Data | eCommerce challenges
Not because it is “technology” you will leave everything up to it. It gives the data that they need but they failed to do the monitoring. It may be exhausting to monitor data and see progress but they forgot that monitoring is an efficient way to see where they’re at on the road in achieving their goals.
Security exposures | eCommerce challenges
Implementing the new technology you have chosen is not the end of it all. Having a new system means you have more exposure to security weaknesses. Apparently, some of the clients I run into were not well prepared for this. They did see that as a priority at first and just got too excited with the new system and did not take time to learn how to quickly respond in that kind of situation. Security in this issue has been compromised, and of course, this again wasted and costs a lot of money.
Maintenance is part of every technology we are using, even the cars we are using needs to be maintained and even our houses. Same as with this new technology you are getting. This becomes a challenge as they did not carefully assess their vendor about the maintenance and how much it costs. For some, it can be too pricey, and some are not. With this said, some end up spending a lot for this, some just felt obliged to pay for it because it is needed and are now beginning to give them problems or the system is acting up. This also plays a crucial part when selecting software.
About the Author:
Shella Ross Mapendan – writer, together with Amjad “AJ” Khan Mohammed (owner) of aimINSIGHT Solutions have been helping small to medium size companies in their Digital processing transformations.
They have developed an innovative process that combines technology with a library of best practices, resulting in a solution that is affordable, easy to implement, and will significantly extend your current business software capability.
“Camibot from aimINSIGHT is a series of bespoke applications designed to reduce the burden of repetitive tasks for employee teams and assist with EDI process automation.”