Illumina is the global leader in biotechnology research systems and consumables for genomics research. With a multi-billion dollar valuation, their products are trusted by research labs, universities, and healthcare institutions worldwide. While their systems can range up to $1 million per instrument and are typically sold through a direct sales force, Illumina's culture of innovation and boundary-pushing has allowed them to seize opportunities that others may overlook.
Recognizing the growing trend of using the internet for transactions and support in their industry, Illumina challenged traditional beliefs about eCommerce. Rather than limiting eCommerce to low-priced, small-volume products, they prioritized online customer experience and committed to digital transformation. To achieve this, they invested in resources and personnel, including hiring a leader with extensive experience in digital user experience and consumer eCommerce. Illumina approached this challenge with boldness and determination.
Illumina generates significant revenue from eCommerce, exceeding its original business plan in its first two years of selling online. Implementing its digital program has led to a drastic increase in website traffic, from 1 million visits per year to over 6.5 million visits. The company now regularly experiences multi-million-dollar online checkouts and sells expensive capital equipment and consumables through its website. This success is a result of pushing boundaries and defying convention.
According to Dave Grimm, Senior Director of Digital Experience at Illumina, the company's success in eCommerce can be attributed to a desire for a B2C-like digital experience utilizing behavioural and user data. He notes that to achieve this, they had to align all selling channels and break down silos, which required leadership from the senior team and a clear vision for changing the company's approach to marketing. Illumina's decisive shift to prioritize digital channels, driven by customer demand for eCommerce, has led to significant benefits for the company.
There are four stages that companies often progress through as they align their organization for transformation. These stages are illustrated in the accompanying graphic and are as follows:
Online Content:
Your business must have a strong online presence that provides internal and external stakeholders with the information they need to do their jobs. This includes product data, application/user guides, and support information. A common starting point for many B2B companies is creating an online content website to access this information easily.
eCommerce:
Also known as web or commerce portal, is the process of conducting transactions online. This is usually done using a shopping cart and payment gateway. Today, B2B buyers expect to be able to transact on your website. As a starting point, many companies implement a "portal" that allows basic online ordering capabilities, which is often an extension of their Enterprise Resource Planning (ERP) system. However, as the limitations of these portals, such as poor user experience and limited functionality, become apparent, companies tend to upgrade to more advanced eCommerce platform solutions.
Aligned Selling Channels/Omni-Channel:
This is where companies can see significant improvements and efficiencies. In this stage, the sales team is fully equipped with digital tools to aid in the sales process, such as real-time product inventory information and the ability to sync online and offline customer behaviour data. Companies also offer customers online self-service options and advanced mobile capabilities.
Full Digital Transformation:
In this stage, digital technology is integrated across all customer interactions, resulting in significant financial and operational benefits for the company. The return on investment (ROI) model is realized, with benefits coming from increased revenue, increased share of wallet from existing customers, an optimized and aligned sales team, and efficiencies throughout the organization. Companies in this stage can generate as much as 50% of their revenue from eCommerce.
In the end, the organization must adapt to eCommerce, even if done gradually. For instance, Device Technologies, a major medical equipment distributor, created an eCommerce store for its employees to purchase its products as a first step. This store was accessible only to internal employees. Still, this allowed the entire organization to see the potential of selling their products online and how it can benefit their customers.
The journey toward digital transformation can be complex and time-consuming. It's not a smooth process, and you may encounter obstacles. However, having strong leadership with the appropriate experience, skills, and knowledge is crucial to a successful transition. It's essential to have leaders capable of making decisions and taking responsibility.
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