Now that we’re on the same page about the meaning of “enterprise,” it’s time to go one step further and cover “enterprise software.” Here’s how Wikipedia defines the term:
What can we learn from the definition above? Well, since enterprises are typically big organizations, enterprise software must be “big software” by definition. By “big” here, we mean large-scale: software that supports a large number of users and user roles and supports many if not most of the goals of the enterprise.
Here is a challenge for you. Think of a time when you bought a product of value (except candies & chocolates) without reading the reviews. If you can think of one, chances are high that the product was either recommended by a friend or had an attestation of highly credible authority. Don’t agree? Probably, you got a free trial.
Clearly, in the B2C world, product/service buying has evolved into referral and review-based systems. It is common knowledge that Airbnb and UBER solved the problem of trust between the parties by implementing a review system. It gave confidence to people in the sense that if X number of people trust a certain driver or a property, then it should indeed be trustworthy. As a result, reviews are ubiquitous now in the B2C world.
But how has this buying behavior evolved in the B2B world where the stakes are much higher as more organizational buyers commit to Digital Transformation (DX)? We will answer this in a bit but let’s look at some figures first.
Digital Transformation brings organizations close to the tipping point and the need for change
As companies fight for increasing shareholder value, DX is not an option but a necessity. According to IDC, worldwide spending on Digital Transformation will be nearly $2 trillion in 2022. This is a massive opportunity for the sellers. But on the other side, the buyers are losing their night’s sleep over a possibility of failing to make the right choices in their DX transformation journey.
According to a McKinsey report
, less than 30% of digital transformation
projects succeed to provide value to the business. The failure is attributable to multiple factors including a gap between expectations and reality, and long approval processes that discourage employees from pursuing DX within the teams.
How has this changed buying behavior?
Organizations that have been successful in DX projects have made the following rapid changes in their operating principles, including the technology buying strategy supporting DX.
Innovation centers are being set up with their own annual budgets and freedom to partner with startups and platform providers on trials, pilots and proof of concepts (PoCs). Furthermore, unlike in the B2C world’s review system, as we discussed earlier, the buyers are no longer impressed with the famous ‘customer reference’ slide for the simple reason that a ‘successful DX project’ is a lesser-known commodity and not easily comparable.
What does this mean for sellers of digital solutions & services?
The short answer is two words – BE NIMBLE. It doesn’t matter whether you are a big technology company or a startup, the expectation of agility in execution is clear as a bell. Therefore, sellers are expected to show a stronger intent to participate in PoCs, trials, and pilots with an appetite for failure.
To empower your company with nimble digital tools in the SAP enterprise mobility space, explore our mobile asset management and warehouse management solutions and order a trial/PoC/Pilot at www.ondevicesolutions.com