In 2001, Petra Industries' CEO recognized the need for action. Though the company was already a successful 20-year-old midmarket distributor of electronics, with the representation of over 550 manufacturers and sales to large retailers and resellers, Stewart knew that the industry was evolving. Instead of being content with their current state, he took action to ensure Petra Industries would continue to thrive in the future.
Stewart recognized the shift in consumer behaviour towards online research and buying in retail markets and realized that this trend would soon affect his industry. Understanding that his business buyers were also consumers, he knew they would be looking for the same convenience and ease of use when purchasing products for their businesses. He took immediate action by providing clean and accurate product data and rapid eCommerce fulfillment to support his retail partners' online efforts. Additionally, he introduced direct ordering capabilities through Petra's website, streamlining their business processes and offering specialized pricing options.
Assembling the right team is crucial for success. Leaders need to surround themselves with individuals loyal to the organization, with digital expertise, and a mindset that embraces change. This concept, while previously mentioned, needs to be addressed in B2B organizations and merits reevaluation.
Create a framework for aligning and holding all departments accountable in a B2B organization during digital transformation, as different teams may have concerns such as eCommerce's impact on customer relationships and compensation for sales, changes to marketing strategies, financial adjustments for new revenue channels, integration and maintenance of new technology for IT, potential changes to customer service roles, and faster fulfillment processes using different methods.
eCommerce affects nearly every aspect of the organization, making it crucial for departments to collaborate and communicate during digital initiatives. To achieve this, structures such as steering committees, shared goals, key performance indicators (KPIs), and service level agreements (SLAs) should be implemented early to prevent internal conflicts and ensure successful execution.
Melissa Swift, a Korn Ferry Senior Client Partner, states that successful digital leaders have a "pioneer mentality," they excel at embracing ambiguity and marshal the troops using a good deal of emotional intelligence. In short, the study found that successful digital leaders possess strong collaborative abilities and the ability to "sell" and align the organization toward digital transformation goals. These leaders are comfortable operating without perfect information while promoting the vision of digital within the organization, which is often seen in entrepreneurs. These traits should be incorporated in the selection of digital leaders in B2B organizations, as eCommerce is a new business within many traditional B2B organizations.
Organizational leaders should possess both functional skills and expertise in eCommerce, including a deep understanding of website usability and eCommerce features to drive engagement and conversions, web merchandising, digital marketing, foundational technologies such as eCommerce platforms and CMS, management of product data and other content, an understanding of the organizational structure required for eCommerce success, knowledge of fulfillment and customer support, and experience managing an eCommerce Profit and Loss.
It should be noted that the skills listed above apply to both B2C and B2B settings, although understanding the unique needs of B2B is critical for success. This list does not negate the specific requirements of B2B, such as unique workflows, purchase patterns, support for traditional selling channels, customer-specific pricing structures, and other B2B-specific aspects that need to be managed in a B2B eCommerce function. However, seasoned eCommerce professionals can learn these aspects of the organization, develop an understanding of the company's product lines, and build a team with expertise in B2B workflows and other business details. Additionally, it is essential to note that true mastery of the eCommerce function takes many years of practical, hands-on application.
Instead of adhering to the traditional "promote from within" approach, B2B companies should consider recruiting leaders from B2C eCommerce roles to fill similar positions in their organization. Many retailers and consumer brands have executives with titles such as Chief Digital Officer and Vice President of eCommerce, and B2B firms can benefit from recruiting from these ranks. This approach can be applied at all levels of the organization while building an eCommerce function.
Ergodyne, a leading workplace safety gear manufacturer, is a good example of the benefits of recruiting from B2C eCommerce roles. In 2013, the company hired Theresa Kuske, who was working in B2C digital commerce for the Occasions Group, to fill a digital marketing role. As a result, six years later, Ergodyne's website boasts category-leading functionality, including real-time inventory lookup, fast checkout, quick-reorder tools, and a consumer-like online shopping experience, which has helped to drive the company's fast-growing eCommerce channel.
In 2018, American Tire Distributors (ATD) hired Ivy Chin, a well-known online retailing executive, to lead its digital efforts. Chin brought two decades of consumer eCommerce experience to the role and served as Senior Vice President of Digital at the multi-channel retailer PetSmart. At ATD, she is responsible for all information technology and the company's digital strategy. Before PetSmart, Chin held executive roles at Belk Inc, a regional department store chain and as Vice President of QVC.com, both of which have large B2C eCommerce operations.
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