B2B

How To Build a Profitable

E-Commerce Strategy
MICHAEL CUNNINGHAM

MICHAEL CUNNINGHAM is the founder and CEO of Harvard Computing Group, an international business
and technology consulting firm. He is a sought after speaker for international events and a regular author of
articles about Web business and e-commerce. Mr. Cunningham is also the author of Smart Things to Know
About e-Commerce.

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 B2B - Page 1

MAIN IDEA
The advantages of business-to-business (B2B) e-commerce are so compelling and the potential rewards so obvious that this literally
may become the last frontier in the business world. At stake will be the trillions of dollars of business which will be transacted by
businesses over the Internet in the next few years.
The imperative, therefore, is to get involved in B2B commerce. In such a dynamic and fluid marketplace, best practices are evolving
rapidly. The business organization that waits until a clear path becomes clear will find by that stage, its competitors will already be
firmly entrenched. In other words, since everyone is learning how to do B2B successfully in real time as they go along, it’s getting
actively involved in the game that counts rather than waiting until things settle down.
In the final analysis, B2B isn’t anything new. What is new is the speed at which better and more effective communication links are
being built between firms. That empowers B2B to reduce transactional expenses, aggregate buying power and exploit the
efficiencies of digital marketplaces. In short, B2B is the greatest opportunity yet in online business.

1. The Fundamentals of B2B E-Commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2

At its very heart, B2B is all about staying competitive while the dynamics of large industries and traditional
ways of doing business are undergoing rapid and dramatic change. The emergence of the Internet as a
common platform for the conducting of business worldwide creates a new set of rules and an entirely
different set of players to those who existed before.
2. The New B2B Focus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
Business-to-business e-commerce focuses on delivering everything that’s needed to close a deal via the
Internet – information, negotiation and order processing. The actual delivery of the product or service may
take place in the real world, but every other aspect of the transaction is negotiated and finalized via the
Internet in a B2B market.
3. B2B Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3
The B2B market is extraordinary – it has so many available opportunities, so many companies moving into
the field and numerous successes and inevitable failures. Yet despite the headlong rush, several best
practice factors are now starting to emerge which characterize the high-quality B2B markets.
4. Building B2B Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 4
In an electronic marketplace, no single company is likely to have the time or resources to do everything
themselves. Instead, there will be a reliance on forming partnerships and strategic alliances to access the
necessary capabilities and skills. In fact, building and maintaining effective alliances is becoming one of
the key skills of the B2B era.
5. The Three B2B Building Blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5
The three key building blocks of any new B2B business will be:
1. Applications
2. Services
3. Software
Successful B2B business builders have generally adopted a customer-centric perspective on each of
these elements and focus on how to create and deliver the customized experience the client wants.
6. How To Design a B2B Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 6
To successfully put together a B2B project, the correct infrastructure must be developed. A robust and
viable B2B infrastructure will have these key elements:

A Viable 1 Corporate Culture

B2B
2 Go-to-Market Plan
Infrastructure
3 Sales & Distribution Plan
4 Marketing Strategy
5 Service & Support Plan
6 Content Plan
7 Integrating Technology Plan

7. Building a B2B Business In Real Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 8

At some point, planning the B2B business must cease and making it happen must commence. While that’s
happening, the marketplace itself will also be constantly changing. Therefore, the key management
challenge in implementing any B2B business plan is retaining the planning flexibility to make changes on
the run and the nerve to act quickly enough.

1. The Fundamentals of B2B E-Commerce
Main Idea
At its very heart, B2B is all about staying competitive while the
dynamics of large industries and traditional ways of doing
business are undergoing rapid and dramatic change. The
emergence of the Internet as a common platform for the
conducting of business worldwide creates a new set of rules and
an entirely different set of players to those who existed before.
Supporting Ideas
While the business-to-consumer (B2C) e-commerce
applications have tended to grab the media spotlight, B2B will be
many times larger. For example, some research companies
forecast that by 2004, B2C sales will be $184 billion while B2B’s
revenues will top the $2.7 trillion mark – and may be as high as
$7.3 trillion.
The B2B marketplace will be made up of:
n The sale and transfer of goods before they reach the
consumer – through exchanges, auctions and other activities.
n Joint ventures and outsourced business activities.
n Financial transfers and transactions.
n The establishment and operation of subcontractor networks.
n New product development services.
n Supply chain activities and related transactions.
n Delivery of support services.
n Negotiation of contractual arrangements.
Obviously the Internet is the foundation or the enabling
technology which makes B2B feasible. The other prerequisite
for the B2B marketplace to grow is the availability of online tools
and processes by which business can be conducted more
efficiently.
The key tools and processes of the B2B marketplace are:
n Business rules – a common set of acceptable practices by
which transactions can be completed.
n Processes – the technical standards, protocols and support
systems everyone uses in common.
n Technology – a shared system and infrastructure (including
security systems) which everyone has access to.
The B2B marketplace will have a wide variety of participants,
including:
n Portals – gateways that will serve as the starting point for
many B2B transactions.
n Exchanges – digital marketplaces arranged around common
themes or area of focus, like a specific supply chain.
n Infomediaries – creators and resellers of content for targeted
industries and user groups.
n Procurement marketplaces – where vendors and suppliers
can exchange information and do business.
n Auction sites – where available business can be offered to the
highest bidder.
n Companies with Web enabled supply chains.
n Businesses acting sometimes as vendors and other times as
buyers.
In short, B2B marketplaces will be sufficiently large and
attractive that participation will be broad and deep. Over time,
virtually all business entities will become active participants in
one or more B2B marketplaces.
B2B - Page 2
So what will be the practical benefits of B2B e-Commerce?
n Reduced costs for goods and services.
n Access to a broader range of products.
n A reduction in the need to carry inventory.
n The ability to control procurement costs.
n More effective quality control systems.
n Enhanced control over suppliers.
n Elimination of intermediaries who do not add value.
n Reduced manufacturing cycle times.
n Shortened sales and delivery cycles.
n The ability to interact with companies based anywhere in the
world cost effectively and efficiently.
n Increased revenues.
n Improved cash management systems and processes.
Key Thoughts
“If you own, operate or participate in any business, B2B
e-commerce is going to be very important to you in the next two
years. Don’t relax – we’re talking two Internet years, or about fifty
to sixty calendar days. This is a market so important that no one
can afford to be left out. Business-to-business e-commerce is
the largest gold rush international commerce has seen for
decades. It may be the largest ever.”
– Michael Cunningham
“These are new times with new rules and new players.
Business-to-business e-commerce will become a main
underpinning of the strategy, operation and technology systems
of companies. No other way of doing business has had such far
reaching effects, so many dimensions that influence the
business process, the marketplace and how businesses work
together with their business partners.”
– Michael Cunningham
“Why does B2B make so much sense? Simply, it is the only way
for businesses to use technology in a strategic manner to
improve their operations. B2B is particularly useful in
streamlining interactions with new and existing partnerships.
The emergence of B2B e-commerce will have a far-reaching
effect on everyday business.”
– Michael Cunningham
“Before the Internet, the benefits of supply-chain management
were considered significant enough for companies to invest in
specialized networks and infrastructure to link members of the
chain together. The Internet now connects these groups in a
common system at a much reduced cost and sophisticated and
expensive communication systems are no longer necessary. As
many firms have already made the investment to create these
interdependent relationships with suppliers and business
partners, the Web offers a unique opportunity to extend and
improve these systems.”
– Michael Cunningham
“All the disintermediation worries that existed in the early days of
the Internet are back. The difference this time is that they are
real. Companies and organizations are gearing up not merely for
incremental change, but for a completely new set of rules. This is
not simple automation of a supply-chain process, purchase of
office supplies on the Web or electronic travel. It’s far bigger.”
– Michael Cunningham

2. The New B2B Focus
Main Idea
Business-to-business e-commerce focuses on delivering
everything that’s needed to close a deal via the Internet –
information, negotiation and order processing. The actual
delivery of the product or service may take place in the real
world, but every other aspect of the transaction is negotiated and
finalized via the Internet in a B2B market.
Supporting Ideas
The basics of developing a B2C e-commerce marketplace are
actually quite straightforward:
1. Build and attract a community of visitors.
2. Give everyone relevant information about their area of
interest.
3. Present products or link to online marketplaces with ranges
of products that will be of interest to consumers.
4. Allow visitors to make comparisons on price and delivery
options.
5. Take the order and provide the requisite fulfillment
processes.
The growth and development of B2B online marketplaces will be
different, if for no other reason than because market behavior
and consumer behavior are so different. For example, many
consumers like to comparison shop using the Internet but
finalize the transaction in a traditional store. This is much less
desirable behavior for a business.
Specifically, B2B e-commerce markets:
n Are long-term relationship based – with many critical
business-to-business relationships outlasting the respective
careers of the people involved.
n Focus on seamless systems – which move transactions
intelligently through all the stages of the sales-to-delivery
cycle.
n Use branding not to create awareness but to create the right
impression for the business – so other businesses will feel
confident about the reputation and past performance
standards of the other company.
n Attract new entrants who already know how the market
operates – and who have something to offer which will
improve the status quo dramatically.
n Feature more complex marketing – because the needs of the
business customer will often be more complex than a simple
purchase decision.
n Put a premium on collaboration – allowing market participants
to share information efficiently through common databases,
link external and internal networks and generally manage
knowledge as efficiently as possible.
Key Thoughts
“Anyone familiar with B2C technologies can see that there is
much that B2B firms can leverage from the consumer sector, but
understanding the target industry and how it works remains the
nub of any real opportunity for business-to-business operations.
In B2B, less is more. Fewer processes, fewer actions, smaller
numbers of participants taking value out where none is added.”
– Michael Cunningham
B2B - Page 3
3. B2B Best Practices
Main Idea
The B2B market is extraordinary – it has so many available
opportunities, so many companies moving into the field and
numerous successes and inevitable failures. Yet despite the
headlong rush, several best practice factors are now starting to
emerge which characterize the high-quality B2B markets.
Supporting Ideas
Good B2B markets:
n Are agile – the participants remain paranoid and therefore
think and respond to new developments rapidly.
n Rely on partnerships – so that participants can get assistance
in the marketing, strategy, industrial development, sales and
distribution areas.
n Leverage existing business relationships to create new
business opportunities around original and creative ideas.
n Are international rather than U.S. focused.
n Understand supply chains intimately, and align all the
resources of the network behind getting to target markets
quickly and efficiently.
n Allow companies to leverage their brands – using brand
awareness as a way to limit new entrants.
n Offer multi-dimensional business models – embracing
business exchanges, sponsorship arrangements,
subscriptions, sponsorships, advertising arrangements,
content relicensing, online stores and application services.
n Build a client base first and then seek opportunities to
leverage that asset later.
n Enhance customer loyalty by continuing to add more value on
an ongoing basis.
n Have sufficient resources to be able to withstand the
competitive enticements and give-aways which other B2B
markets may be willing to offer in the future.
n Carry out market research, testing, prototyping and
introduction of new services continually.
n Learn new techniques and evolve over time to meet the
changing needs of market participants.
Examples of B2B companies that exemplify many of these best
practices include:
• Staples.com – office supplies
• HardDollar.com – construction industry
• GlobalSupplyNet.com – janitorial supplies, affinity programs
• Travelocity.com – travel services
• ebay.com/business_exchange/ – business online trading
• MeetChina.com – facilitation of trade with China
• VerticalNet.com – more than 50 vertical markets
• ProSavvy.com – consulting services
Key Thoughts
“Many firms moving into B2B fall under the category of an
existing business that has the vision and determination to
change the way things are done in its industry. These
organizations are changing existing operations and focusing on
moving to a new space in the marketplace. They are moving new
products to a new sector. Even with industry-specific knowledge
and an established product line, these transformations are
demanding and fraught with risk.”
– Michael Cunningham

4. Building B2B Alliances
Main Idea
In an electronic marketplace, no single company is likely to have
the time or resources to do everything themselves. Instead,
there will be a reliance on forming partnerships and strategic
alliances to access the necessary capabilities and skills. In fact,
building and maintaining effective alliances is becoming one of
the key skills of the B2B era.
Supporting Ideas
In B2B, time-to-market is of prime importance. There is most
often a substantial early premium or first-mover advantage.
Therefore, speed has a major impact on the way partnerships
are formed and run.
Good and long lasting B2B partnerships:
n Deliver win-win benefits for all the parties involved.
n Produce results quickly – thereby discouraging competitors
and creating momentum.
n Often get doubled up or layered, so multiple business
initiatives can be tried in parallel.
n Have varying control mechanisms and approaches.
n Reduce risks for each of the partners involved.
B2B partnerships and alliances also come in a variety of forms
and involve both inside partners (who participate in developing
the business plan) and outside partners (who assist solely in the
tactical implementation of the plan). For example:
n Outsourcing arrangements – with partners who will take
responsibility for various parts of the supply chain.
n Sales partnerships and affiliate programs – which expand
market share by teaming up with partners with established
consumer relationships.
n Financial partnerships – with people who become part of the
ownership structure of the business.
n Distributor arrangements – to extend the market and
geographic reach of the firm.
n Industry-specific partnerships – with others who bring specific
skills, know-how and experience to bear.
In B2B, finding and establishing the appropriate roster of
suitable partners and then getting the mix precisely right will be
difficult. The B2B firms that get these factors exactly right,
however, then position themselves to move forward far more
rapidly than competitors who attempt to do everything
themselves.
In addition, the ideal roster of partners will vary over time. For
example, the activities which B2B partners may be providing will
vary according to the development phase of the overall B2B
project, in this way:
Project Phase Ideal Partner Activities
n Funding
n Market opportunity research
Planning n Development of the e-Strategy
n Business development planning
Research n Market testing
n Prototyping
B2B - Page 4
n Develop requirement budgets
n Testing of first generation systems
Specifications
n Selection of developers with skill sets
n Selection of suitable hosts
n Integrator selection
Development n User testing
n Establishment of hosting alliances
n Press relations
n e-Marketing
Launch n Print marketing
n Advertising
In short, the development of a successful B2B organization is
complex and demanding. Bringing everything together in the
time frame available is a challenge, especially if experienced
B2B staff are not available. By involving partners in each stage
as required, the fundamentals can be put in place and the B2B
project placed on a strong foundation.
Key Thoughts
“There is a reason the very successful Internet firms are working
at a frenetic pace, both in terms of their decision making
processes and in terms of the number of hours involved. The old
rule of thumb that time means money has a totally new meaning
in today’s valuation world.”
– Michael Cunningham
“Anyone in business will tell you that good people, a great plan
and a hot market can make a company a huge success. Next on
the list of important factors is the selection of excellent business
partners. In the B2B world this is doubly important.”
– Michael Cunningham
“In the past organizations spent months and sometimes years
building their partnership networks. A strong partnership
network used to be considered a strong barrier to the entry of
others into the marketplace. Although this may still hold true, the
way companies go about forging these networks will be different
– that is, if they want to get there while the party is still going on.”
– Michael Cunningham
“New-age partnerships require enterprises to have a fluid way of
looking at the world. They have to be ready to change not only
one thing, but many things simultaneously. Maintaining a fluid
view of the partnership approach will keep companies thinking
about the real issues for success. An organization that can
regroup, reorganize and respond quickly has the edge. Although
there is no substitute for good old fashioned planning, in a
volatile environment, different tools, behavior and partners will
provide necessary flexibility.”
– Michael Cunningham
“In today’s e-business world, most firms understand that the run
for market share, mindshare and customers is a sprint every day
of the week. Joining forces and leveraging the power of many
becomes a foundation for most operation’s strategies.”
– Michael Cunningham

5. The Three B2B Building Blocks
Main Idea
The three key building blocks of any new B2B business will be:
1. Applications
2. Services
3. Software
Successful B2B business builders have generally adopted a
customer-centric perspective on each of these elements and
focus on how to create and deliver the customized experience
the client wants to enjoy.
Supporting Ideas
1. B2B Applications
The ideal B2B site will be compelling and keep the customer fully
engaged. Accomplishing that usually requires the site to be:
n The first place the client thinks to look.
n Extremely relevant to the way the client does business.
n Offering services or products that are precisely what’s
needed – increasing loyalty.
n A highly customized experience.
n Scaled upwards or downwards to meet the client’s evolving
needs and requirements.
Achieving all this is the job of the application framework put in
place at the B2B site. Most likely, these applications will be
delivered in a number of discrete layers:
n Layer 1 – Intranet or business-to-employee (B2E) systems.
This will be the internal network, with e-mail capability,
browser software, Internet access and so forth. Most
companies tend to bundle all these applications together on
an organization wide intranet.
n Layer 2 – Back-office systems.
These are the systems needed to run the business – financial
accounting, inventory management, order entry, human
resources, etc. Also included will be the enterprise resource
planning systems. B2B generally places a high premium on
the ability of any firm’s back-office systems to be compatible
with those used by partners and other market participants.
n Layer 3 – The B2B destinations themselves.
The upper, most visible layer, will be the B2B portals,
exchanges, auction sites, vertical application marketplaces,
etc. These destinations become the online place where
clients do business together.
Due to the fact many of these applications have already been
developed for the B2C markets, it is now possible to outsource
many B2B applications as prebuilt components. By accessing
and adopting these components rather than building from
scratch, significant amounts of development time can be saved.
That allows the B2B company to get to market sooner, although
it may require some trade-offs in the area of customization.
2. B2B Services
Most firms entering the B2B marketplace find it more cost
effective to use a hosting provider rather than undertake
themselves everything that’s involved in setting up a dedicated
data center.
B2B hosting companies:
• Offer packages of services and site hosting capabilities.
• Set up high performance servers and bandwidth.
• Guarantee 24 hours a day 7 days a week uptime.
• Offer an upgrade path and the ability to scale up later.
B2B - Page 5
In addition to the hosting companies, a number of B2B
application service providers have also come into existence.
These companies not only provide hosting capabilities but also
packages of services B2B companies typically require. All these
services and applications are available on an as-needed basis –
lowering the ingoing capital requirements for new B2B
participants.
3. B2B Software
Many B2B specific software packages are now available
off-the-shelf. For example, corporate portal system software has
recently been released. This provides an infrastructure which
links data resources, security and applications in a common
framework. That, in turn, allows many different applications to
use the same desktop interface.
Similarly, many large software companies now offer full-service
B2B packages designed specifically for new B2B market
entrants. In addition to the software required, these packages
often include strategic consulting and business plan
development.
Systems integrators offer another viable option. Integrators are
specialists in the development of new B2B systems. They have
expertise and technical know-how, combined with hands-on
experience. Integrators should also be well positioned to advise
what elements can be purchased pre-built, and which parts of
the overall system will require a customized approach.
Key Thoughts
“Given that many market requirements are tied to client control
and creating the best possible experience for the end user, the
word customization is used extensively by vendors and
suppliers. Customization means that the information and
application tools delivered to the end user are tailored
specifically to create the experience the client wants to enjoy.
Enjoy is a good word. People who are enjoying a site (are
provided with useful and relevant information for the job) are
likely to stay, and having people stay is what the B2B world is all
about. If people do leave, the second most important element in
B2B comes into play – getting them to come back for more.
Accomplishing this goal means staying in the client’s face,
keeping the client interested for long periods of time, which
means making the site both relevant and compelling.”
– Michael Cunningham
“The Internet has changed everything for business, and B2B is a
valuable occupant of this new space. We now have a medium
that allows us to do so many things that we are limited literally
only by imagination.”
– Michael Cunningham
“The Internet as a business-to-business medium is boundless
and allows us to make progress in seconds, not months, days or
hours. It serves not only for distribution, but also as an
infrastructure for communication and collaboration. In the past,
sales and marketing were based largely on sophisticated but fat
distribution chains. These led from manufacturers to the end
customer, with most of the money and margin being absorbed in
the process. But business-to-business e-commerce is fast
becoming the new standard way of doing business. No other
vehicle creates the value, opportunity and mechanisms made
available by B2B. Interestingly enough, until telepathy becomes
a common form of communication there is likely to be no faster
way of establishing business relationships for the near term.”
– Michael Cunningham
 B2B - Page 6

6. How To Design a B2B Business should be available in electronic format, so the achievement of
Main Idea various milestones and any amendments to be made along the
way can be updated and circulated immediately.
To successfully put together a B2B project, the correct
infrastructure must be developed. A robust and viable B2B
B2B 3 Sales & Distribution Plan
infrastructure will have these key elements:
Infrastructure
B2B 1 Corporate Culture
Infrastructure B2B requires that sales and marketing strategies be aligned far
2 Go-to-Market Plan more carefully than for traditional businesses or even in B2C
situations as the B2B sales cycle is usually longer and more
3 Sales & Distribution Plan
complex.
4 Marketing Strategy Generally speaking, companies will not be surfing the Net to find
5 Service & Support Plan places where they can do business. The key B2B sites for each
industry will attract the people who can use them meaningfully.
6 Content Plan Thus, in contrast to B2C sites, B2B sites concentrate on keeping
Integrating Technology Plan potential buyers engaged by offering:
7
n An online experience that resonates with participants in
specific industries.
Supporting Ideas n An expedited and efficient sales process – which is
self-service and completely automated if at all possible.
B2B
1 Corporate Culture n A complete framework of everything that supports the sales
Infrastructure
decision.
Designing a B2B business involves much more than simply The B2B sales and distribution plan should outline how, in fact,
putting up a new Web site. Properly done, a B2B business customers will be moved through the various stages of the B2B
initiative will permanently change numerous aspects of an sales cycle:
existing business. Therefore, an integrated approach is needed
rather than something ad hoc. n This is the initial marketing program
Before making the transformation to an Internet business, give Create demand which creates awareness of products
the company culture time to adjust and prepare. That usually within the target market segments.
requires consensus to exist amongst all the key internal parts of
the business organization. And consensus will only be possible if
everyone is in the loop – that is, if everyone is closely involved in
forming and shaping the B2B strategy right from the start. n The people who respond to the initial
Identify prospect marketing becomes prospects – and
Therefore, the first step in building a strong B2B infrastructure is
are provided with more detailed
to plan carefully with everyone in the business becoming
information.
involved in the details. Give your internal company culture the
time needed to mentally adjust to the proposed changes.
n Through interviews and
B2B 2 Go-to-Market Plan Qualify prospect demonstrations, genuine buyers are
Infrastructure separated from the “tire kickers”.

The Go-to-Market plan is the central coordination instrument. It

reduces risk, eases confusion and enhances teamwork.
n Specific purchase proposals are
A good Go-to-Market plan will cover these points:
Proposal generated which are tailored to the
• The B2B marketing strategy and anticipated tactics.
needs of the prospect.
• The public relations program, including media tours.
• How existing clients will be brought up to speed on B2B.
• How new clients will be secured for the B2B program.
• Pricing information. n A purchase contract is negotiated
• Packaging plans and options. individually and the transaction closed.
Negotiate
• The Web site traffic promotion strategy.
• Special introductory offers.
• Partner or affiliate programs.
• Internal promotion and educational programs.
• How the new B2B business model will be validated.
n After sales support is provided and the
• Internal communications programs. Support client becomes a prospect for
• New product development schedule.
additional products and services.
• Launch plans for new products.
Clearly the Go-to-Market plan is important because it provides
the framework around which the B2B business will take shape.
As such, the Go-to-Market plan is never static. Ideally, the plan

B2B
4 Marketing Strategy
Infrastructure
In the B2B context, marketing is customer acquisition. Most
likely, a multifaceted approach will be taken to the challenge of
building a strong client base. The most common ways to capture
new clients are:
n The Infomediary approach – provide potential clients with
loads of free, useful information.
n Specials – free offers of sample products or information
packages at dramatically reduced prices.
n Applications – provide free use of applications which add
value for potential clients, encouraging them to visit again and
make further transactions in the future.
n Acquisitions – purchase the client lists of competitors or
companies already established in adjacent markets.
n Competitive pricing – price products and services at a level
that will increase market share, especially during the
developmental stages of the B2B marketplace.
n One-to-one marketing – provide customization of products
and services for specific potential clients.
n Customer relationship management databases – use
information gathered about potential clients in other settings
to tailor marketing initiatives specifically to their known needs.
In practice, the B2B marketing strategy will identify which of
these marketing ideas will be used and how.
B2B
5 Service & Support Plan
Infrastructure
Service and support is especially important in the B2B context
because this delivers rich and effective interactions with the
product sold.
Self-service is highly desirable. This simply means creating
versions of internal databases and business practices which
allow clients to get the information they want whenever they
need it. The normal B2B practice in this area is to allow clients to
have external access to whichever sections of the company’s
internal systems contain the relevant information.
The B2B service and support plan will detail how information will
be captured, reused and reformatted to meet the specific needs
of individual clients.
B2B
6 Content Plan
Infrastructure
Content is an essential aspect of the Internet experience.
Therefore, a viable B2B infrastructure will address the issues of
how content will be acquired, updated and integrated into the
site on an ongoing basis.
The cost of acquiring interesting and relevant content is usually
underestimated in B2B plans. Similarly, the lead time involved is
often neglected entirely. So too is the need for editing,
reformatting and freshening the material. All of these issues
need to be addressed.
The most common sources of content for B2B applications are:
• Magazines, especially trade magazines.
• Industry specific journals or books.
• Licensed material from third party sources.
B2B - Page 7
The B2B content plan must address how up-to-date content will
be sourced and integrated into the site. It must also address
issues like dynamic content – where different users are provided
with specific content based on their personal requirements and
preferences.
B2B
7 Integrating Technology Plan
Infrastructure
Communications tools can vastly enhance the B2B experience.
Therefore, most B2B businesses provide a range of
collaborative tools and systems, for example:
• Bulletin boards
• Chat systems which allow collaboration to occur.
• E-mail systems in various flavors and options.
• Contact management tools like instant messaging.
• Document management applications.
• Calendar management and scheduling packages.
The B2B integrating technology plan will detail how these
communications tools will be integrated into the site and the
back-office systems. The more these various elements can be
integrated seamlessly, the better.
Key Thoughts
“In the past, market share and brand position created a
dominance that could not easily be changed. In the B2B world,
things can be very different. It is not a question of how much will
change, but of how much change will stick. The network effect of
the Internet – connecting so many individuals to one another and
to businesses – is what’s driving the change. E-mail, chat, video
conferencing and data conferencing are the tools of today. What
is business news in the morning can become a trend by the
afternoon. People need to think, execute and worry all at the
same time. Luckily, the channels exist for rapid feedback, from
sales to marketing to manufacturing. The ability to change the
plan has to be built into the plan.”
– Michael Cunningham
“Creative review of current relationships is a great place to begin
a B2B strategy. The idea is to cut the number of steps, reduce
the costs and improve the effectiveness (repeatability) of the
process by taking a serious and surgical look at the current
business model. After all, the competition will be looking at the
market with similar goals, which will not include the welfare of
another organization’s position in the marketplace.”
– Michael Cunningham
“Modeling the business network the organization wants to build
is time well spent. The model can be as simple as a relationship
map of what happens as new marketing, sales and development
processes progress. Building the ideal network is one of the
most important tasks that takes place at the beginning of any
B2B program or strategy. Without this vital ingredient, the
organization is apt to miss critical pieces, such as recognizing
the risk of competitive threats, identifying potential costs and
developing a transition plan for existing relationships and
distribution programs.”
– Michael Cunningham
“This is not some new business methodology, but a whole new
mind-set. For a variety of reasons, moving into Internet territory
requires thinking differently.”
– Michael Cunningham

7. Building a B2B Business In Real Time
Main Idea
At some point, planning the B2B business must cease and
making it happen must commence. While that’s happening, the
marketplace itself will also be constantly changing. Therefore,
the key management challenge in implementing any B2B
business plan is retaining the planning flexibility to make
changes on the run and the nerve to act quickly enough.
Supporting Ideas
Paradoxically, the success of B2B projects doesn’t lie in arriving
at a predetermined destination. Instead, in B2B, flexibility is the
key. There must be an ability to change the business plan in the
middle of the transition to respond to new market conditions.
The key elements in B2B implementation programs are:
n Planning – start with clearly defined goals. They will need to
be updated and changed regularly, but having one single
vision is important.
n Integration – the B2B plan should have all the new work
processes and technology embedded within it. Unless the
B2B system does everything the old business used to do, it
won’t be very effective.
n Education – staff need to be provided with the rationale
behind the new B2B strategy. That will instill a sense of
urgency in the program.
n Resources – the B2B business initiative must be sufficiently
resourced if it is to have any chance of succeeding.
n Workflow – the new ways of doing business. By building and
defining new work practices, the B2B program will change
how business gets done. Everyone needs to be on the same
page with these changes.
n A balance of internal and external integration – to build unity
and real world effectiveness.
n A commitment to eliminating unnecessary work practices that
may now exist within the organization.
n Inclusion – combining the efforts and resources of
management and staff together cohesively.
n Information – providing feedback on progress-to-date and
anticipated future milestones.
n Acknowledgment of the impact of the changes being made on
various peer groups within the organization.
n Alignment of reward systems – to ensure what contributes in
meaningful ways to the B2B program is what’s rewarded.
n A readiness for change.
n A tolerance for genuine mistakes while new systems are
being learned.
n Emulation of the best practices gleaned from other successful
B2B transitions.
n The ability to prototype, develop, test and revise in real time.
n A commitment to develop new core competencies.
n Flexibility.
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B2B - Page 8
In short, B2B implementation requires an integrated approach. A
common framework must exist, around which all the various
elements can be placed:
• Research.
• Planning.
• Marketing.
• Sales.
• Development.
• Deployment.
• Manufacturing.
In previous eras, a business had loads of time to carry out
detailed research and refine products through repeated test
marketing cycles. With the arrival of the Internet, however, the
new imperative has become to attract customers first and figure
out precisely what product and services they want later on.
By approaching B2B using an integrated framework,
organizations are far more likely to have the capability of
modifying their strategy in real time based on real world input. In
B2B, that’s as good as it gets.
Key Thoughts
“Being ready for change and making it happen are two distinctly
different things. At some point, the raft has to be ready to go
down the river. If the river is the market the water can be smooth,
wild or downright treacherous depending on the circumstances.
If the company can control and steer the boat, this is as good as it
gets. Every organization has to make the choices, weigh the
risks and rewards, decide how much to change and how quickly,
all the time keeping a careful eye on the moving marketplace.
The willingness of an operation to make the necessary
commitment to embrace the current industry climate is an
ongoing management challenge. There is a reason e-commerce
strategists and managers are well compensated. This is a
challenging ride.”
– Michael Cunningham
“The B2B market is changing in real time. Such a lively
marketplace needs dynamic rules to keep it in check. Staying
watchful and being ready to do things differently may be the
ultimate weapons in the arsenal required to do B2B in the new
order of business. As organizations face something so different,
the ability to plan, react, respond and deliver creates new
dimensions and challenges for professionals everywhere.
Perhaps at last the worriers will prosper in a world in which the
greatest certainty for an enterprise is that a competitor wants its
market share and wants it quickly. Stay alert: it is going to be a
wild ride.”
– Michael Cunningham
“Even if B2B is not the final frontier, it’s the biggest one I’ve ever
seen. Business-to-consumer e-commerce was exciting –
convenience, pricing, service. Actually, it was quite good when
you think about it. However, compared with B2B, it’s the National
Enquirer versus the Times of London. A horse of a different
color.”
– Michael Cunningham