B2B Companies Must Adopt an Agile Mindset to Survive in Today’s Market

Business rules are changing faster than ever, and companies that don’t adopt an agile mindset will perish.

To survive in today’s market, B2B companies must be able to rapidly adapt to changes in customer needs, new technologies, and shifting competitive landscapes. This requires a shift in how businesses operate, from reactive to being proactive, from relying on legacy processes to embracing new ways of working. Many organizations are still stuck in a waterfall mentality, leading to stagnation and missed opportunities.?

To stay ahead of the curve, B2B businesses must embrace agility and be willing to change on the fly. This becomes especially important under the current economic conditions and the predictions of a recession. Markets are toughening, and buyers are becoming more demanding, so businesses need to be able to adapt to these changing conditions quickly. Those that make the switch will be better equipped to compete in the digital age. And one of the most important decisions a company can make in this regard is what software architecture to deploy and how.

In this article, we talk about:

1. How a company’s software architecture defines its agility.
2. In-house vs. Open-Source vs. SaaS architectures vis-à-vis business agility.
3. The role of an agile software vendor in collaboration with SaaS to unlock agility in business.
4. How agility in software setup can help? B2B companies overcome economic downturns or a recession.
5. Examples from B2B Manufacturing and B2B Subscription industries to explain the role of agile software solutions to survive and thrive in a recession.
6. List of top 10 questions to ask a software vendor when evaluating for agility.

How your Software Architecture Governs your Business Agility (and destiny)

When it comes to business agility, your software architecture is key. It's the foundation that supports your applications and services and governs how they interact with each other. But more importantly, it’s the foundation of your business strategies and revenue goals.?

A well-designed architecture can help you respond quickly to change, scale rapidly to meet demand, and deliver a superior customer experience. But if your architecture is poorly designed or outdated, it can constrain your business, making it difficult to adapt to new market conditions or capitalize on new opportunities. In today's constantly evolving digital landscape, a static, inflexible architecture is simply not going to work.

To be truly agile, your business needs an adaptive architecture that can easily accommodate change - today, tomorrow, and always. A carefully considered software architecture can help you achieve business goals, while a poorly designed one can make your business fall behind and eventually disappear entirely.

To kickstart your agile transformation or to know more about agile B2B SaaS solutions, click here .

What Makes for an ‘Agile Software Architecture’?

In-house and Open-Source as the contenders

When it comes to deploying business software, most companies prefer one of the two - in-house development or open-source software (OSS). Why? Because companies ‘believe’ these options offer greater control over the direction of the project and are more affordable. But is that true??

The fact of the matter is that in-house development can be costly and time-consuming, particularly if businesses do not have the internal expertise required. In addition, in-house developed software is often proprietary, which means that it can be difficult to integrate with other systems.

On the other hand, open-source software is typically more affordable and can be obtained quickly. However, it may not always meet all of a business's needs and you will need to put in extra effort to configure and customize the software to your liking. Not to mention the issues around security.

SaaS as a Champion of Agility

SaaS has a much faster deployment time compared to other delivery models, with no need to purchase or maintain hardware or software on-site. This dramatically reduces both time and costs associated with implementing new projects, making it far more efficient and cost-effective than traditional options.

Another major benefit of SaaS is its scalability. Businesses can easily adjust their usage and billing plans without having to make significant changes to their existing infrastructure – giving them unprecedented flexibility in an ever-changing marketplace. Additionally, since all data is stored remotely, there is no risk of losing data due to an on-site disaster.

And finally, SaaS is much easier to manage than other models, as it requires less technical expertise and IT oversight. This makes it perfect for businesses that don't have the resources or workforce to invest in their own internal infrastructure. Besides, SaaS also offers more secure access to vital data, making it even easier for companies to protect themselves from cyber threats.

SaaS provides an invaluable set of benefits that make it the obvious choice for any business keen on agility. With its fast deployment times, scalability, lower costs, and improved security, SaaS is a powerful tool that can help businesses remain competitive and maximize their potential in an ever-evolving marketplace.

No wonder the SaaS market is set to grow despite a faltering global economy. As per Gartner , while the worldwide end-user spending on public cloud services is forecast to grow 20.7% to total $591.8 billion in 2023, up from $490.3 billion in 2022, the SaaS segment will see continued growth in 2023, forecasted to be around 16.8%

“Current inflationary pressures and macroeconomic conditions are having a push and pull effect on cloud spending. Cloud computing will continue to be a bastion of safety and innovation, supporting growth during uncertain times due to its agile, elastic and scalable nature” - Sid Nag , Vice President Analyst at Gartner

So, is SaaS Architecture all That My Business Needs to be Agile??

NO!

When it comes to becoming agile, SaaS alone is not enough for B2B businesses. While SaaS may be a great starting point, it cannot guarantee agility on its own. Choosing the right vendor is critical when it comes to attaining successful outcomes. Why? Because only an experienced and reliable vendor with an established track record can provide customized solutions, ongoing support, and scalability – all instrumental in helping businesses become agile. Therefore, a business needs SaaS solutions developed in ‘consultative partnership’ with a vendor who lives and breathes agility.

An ‘agile SaaS vendor’ takes up the mantle to be a consultative partner on a company’s journey to agility. Such a vendor not only provides the software but provides strategic and operational guidance to help a business understand how best to utilize its technology solutions. This comprehensive approach allows companies to make informed decisions that can revolutionize the way they operate and become more efficient.

Agile SaaS vendors have extensive experience in deploying SaaS-based applications for different industries and are well-versed in tailoring solutions that meet specific business needs. They provide valuable insights into the latest industry trends, and best practices for integrating and customizing applications according to customer requirements. With this hands-on approach, agile SaaS vendors can identify areas of improvement and make recommendations that maximize the potential of a company’s software solutions.

In addition to consulting services, an agile SaaS vendor can provide valuable support and maintenance services such as data backup and security, system updates, issue tracking and resolution, user training, and post-implementation optimization. This allows businesses to streamline operations and reduce costs associated with running IT systems in-house.

An agile SaaS vendor is an invaluable asset for any B2B business looking to stay ahead of the competition through agility. The right SaaS partner will deeply understand both technology solutions and business needs, enabling them to develop customized solutions that drive results.

To kickstart your agile transformation or to know more about agile B2B SaaS solutions, click here .

Unleashing the Power of Agile in the Face of an Economic Downturn

The looming specter of a recession or economic slowdown is becoming a major concern for B2B companies in the US. Such an event can have both psychological and strategic implications that can have far-reaching effects on businesses. On the psychological level, it is important to note that fear and uncertainty around an impending recession often lead to decreased consumer confidence and spending. This means that even if a company’s products are superior, customers may hesitate to purchase due to concerns about their financial security. Strategically speaking, an impending recession or economic downturn creates genuine concerns about its impact on the bottom lines and budget allocation. It is typical for companies to experience:

• Reduction in sales
• Demand for cheaper product/service options
• Curbed credit access and slower revenue collection
• Longer buyer decision cycles
• Buyer indecisiveness
• Low employee morale

Struck by panic, most business leaders resort to desperate measures anchored in aggressive financial pursuits - layoffs, diluted ( or no) marketing activities, deep and repeat discounts to acquire new customers, venturing outside of core business activities, and avoiding investment in new technologies.?

But do desperate times always call for desperate measures? No. They call for preparedness and prudence. And it’s not just us who’s saying that, but studies say it too.

In a survey conducted by the Harvard Business School (and later supported by Bain and McKinsey’s study of the Great Recession) around the performance of close to 4700 companies in the recessions of 1980, 1990, and 2000, it was found that while 17% of the companies went bankrupt or got acquired, 9% of the companies flourished and outperformed their competitors by at least 10% in sales and profits growth in the three years that followed the recession.?

These studies consider ‘preparation’ as the key differentiator between the winners and losers. Bain stated that companies that lost during the recession did not have a contingency plan or an alternative strategy. All these companies did was switch to survival mode and make deep financial cuts.

But what does it take to be ‘prepared’ and to have a contingency plan in place? It takes Agility!

An agile software setup and vendor partnership will help a company weather a recession by:

• Simplifying business processes and operations
• Avoiding redundancies and maximizing employee performance
• Developing cost-effective, comprehensive, and targeted marketing campaigns
• Forecasting, tracking, and analyzing efforts, spends, and outcomes in real-time
• Improving buyer experience and customer retention rates
• Staying informed about current events, trends, and market changes

Let’s understand this with the help of two examples that cover two distinct industries - Manufacturing and Software Subscription.

B2B Manufacturing

The manufacturing industry is one of the most important sectors of the economy, and during a recession, it can be one of the hardest hit. Here are some unique challenges faced by B2B manufacturers during an economic crisis:

1. Decreased Demand: During a recession, consumers tend to be more prudent with their spending habits. This leads to decreased demand for manufactured goods and services, resulting in lower profits for manufacturing companies.

2. Increased Labor Cost: Many states have legislation requiring increased wages during economic downturns, leading to higher labor costs for manufacturing companies.

3. Reduced Access To Credit: Banks are typically reluctant to extend credit to new businesses or offer loan modifications when the economy is weak. This can make it difficult for manufacturers to access the capital they need for production and expansion.

4. Higher Raw Material Prices: As demand decreases, prices of raw materials may increase due to supply-demand imbalances caused by the recession. This can make it difficult for manufacturers to remain competitive in the market.

5. Exchange Rate Fluctuations: The US Dollar tends to weaken during times of economic downturns, resulting in increased costs of imported raw materials and decreased profits from exports. This can be a major challenge for companies that rely on international trade to stay afloat during recessions.

6. Reduced Consumer Confidence: During recessions, consumers tend to be more wary of taking risks with their money, leading to lower spending and reduced demand for manufactured goods and services. This lack of confidence can lead to further economic contraction and instability.

7. Increased Regulations: Governments often impose stricter regulations on businesses to protect consumers and stimulate economic growth when the economy is weak. This can add to the burden of manufacturers, as they must comply with additional regulations to remain in business.

8. Increased Competition: When demand decreases, more companies may enter the market to take advantage of reduced consumer spending. This can lead to increased competition and lower profits for existing manufacturing companies.

Amidst these challenges, agile solutions for revenue operations can be a boon for B2B manufacturing companies. These include SaaS solutions for Configure-Price-Quote (CPQ), E-commerce Storefront, Digital Guided Selling, and Contract Lifecycle Management. The agility of these solutions will help manufacturers respond quickly to changing market conditions and customer demands and anticipate future needs. By leveraging data-driven insights, predictive analytics, and automation, agile revenue operations solutions can provide B2B manufacturers with an up-to-date understanding of market trends to make better decisions more quickly. This level of responsiveness gives them the agility to adjust their strategy, product offering, pricing, and promotion in real-time while also helping them identify new opportunities. Automated and streamlined workflows and reduced manual processing errors will enable manufacturers to speed up their time-to-market. This will also free up resources which could then be directed towards innovation and R&D initiatives to create competitive advantages for their business during the recession. Additionally, by having more accurate data available at all times, B2B manufacturers can provide better services with improved customer segmentation, personalization, and engagement – leading to increased customer loyalty and revenue generation.

B2B Software Subscriptions

The recent macroeconomic conditions have bowled over investor sentiment, and the drawdown is hitting software subscription companies hard. Another concern is the rising rate of downgrades as customers tighten their purse strings. Here’s a list of challenges expected to be? faced by the software subscription industry in the near future:

1. Unstable Cash Flow: A recession creates an uncertain environment for B2B subscription companies, making it difficult to anticipate and plan for cash flow. This can create financial instability, making it hard to maintain a healthy budget and invest in long-term growth.
2. Decreased Consumer Spending: During a recession, consumer spending often falls as people focus on saving money rather than buying goods and services they don’t need. This can lead to decreased sales for B2B subscription companies, meaning fewer customers signing up or renewing subscriptions.
3. Higher Price Sensitivity: With consumers being more price sensitive during a recession, B2B subscription companies may have difficulty getting customers to pay full price for their products and services. This could mean offering discounts or promotions to get customers to sign up, which can result in lower profits.
4. Customer Retention: When times are tough, and money is tight, customers may start looking for cheaper alternatives or cancel their subscriptions altogether. This can make it difficult for B2B subscription companies to retain existing customers, resulting in lost revenue and having to constantly reinvest resources into acquiring new ones.
5. Lack of Innovation: During a recession, B2B subscription companies may struggle to come up with innovative solutions due to financial constraints or fear of risk-taking. Without being able to offer unique products and services that differentiate them from the competition, these companies could find themselves struggling to stay relevant.

During an economic slowdown, subscription-based B2B companies in the US need to be agile and nimble in their billing and revenue management processes. Companies can stay ahead of customer demands by using a modern, cloud-based billing and revenue management platform that automates back-office operations and quickly adjusts plans or pricing as necessary. This helps ensure customers remain satisfied while preserving profitability in times of financial hardship. Such a platform should offer agile solutions for recurring billing, revenue recognition, revenue forecast, and subscription management.

The right platform can provide real-time visibility into cash flow while streamlining payments, invoicing, taxes, compliance requirements, and more. Additionally, it can enable cross-sells and upsells through automated upgrades and downgrades based on usage patterns or preferences. This is especially useful for businesses that offer multiple tiers of service, as it allows them to easily and quickly offer customers the right mix of services at the right time.

Companies can further strengthen their billing and revenue management processes by using a platform that integrates with existing technology systems. This makes it easier to manage customer data, automate customer onboarding, track churn rates, measure success metrics across channels, and more. By staying on top of these key performance indicators (KPIs), companies will have better insight into their business performance in an uncertain economic climate.

How to Identify an Agile SaaS Vendor - Asking the Right Questions

Enough said. Now here’s a list of top 10 questions that B2B companies should ask when evaluating a SaaS vendor for agility to take their business to the next level.

1. Does the vendor have a proven track record of helping other B2B companies achieve their desired results? It is crucial to ascertain if the vendor has sufficient experience in delivering solutions that meet your business needs and objectives. Ask for examples from existing customers or case studies of successful implementations.
2. How quickly can a product be deployed and integrated into existing systems? When selecting a SaaS vendor, speed is key. Make sure you understand how long it will take for the product to be set up, tested, and rolled out – and how well it integrates with your existing systems.
3. Does the software integrate with existing systems? Ask if the software integrates with any existing systems you may have and if the vendor assists with the integration process. To build an agile company, you need SaaS solutions that are easily configurable, extensible (with custom code and plug-ins) and interoperable with other solutions of your choice.
4. How agile is their software? Agile software is designed to be flexible and scalable, allowing you to respond quickly to changing requirements. Ask the vendor how quickly they can deliver new features or updates and if their system can adapt as your business needs change.
5. Is the vendor willing to invest in ongoing development? Look for a vendor committed to improving the software and adding new features on an ongoing basis. This will help ensure that your system remains updated with the latest technology.
6. What is the vendor's track record with managing after-sales services? After-sales services are often overlooked when evaluating SaaS vendors, but they can make or break the success of a project over the long term. Make sure you understand how the vendor handles things like bug fixes and feature updates down the line for their existing customers.
7. Does the vendor have a customer support system in place? Agile companies need to be able to react quickly to customer needs and questions. Look for vendors that have reliable customer support systems, including dedicated customer service representatives available 24/7, response time guarantees, etc.
8. Are there any hidden implementation costs associated with using this product? When selecting a SaaS vendor, it's important to be aware of potential hidden costs. Ask the vendor if there are any one-time or recurring fees associated with the implementation and usage of the tool.
9. How secure is the software? Security should be a top priority for any SaaS vendor, so ask about their security measures and whether they provide additional protection against malicious attacks or data breaches.
10. Are the vendor's pricing and licensing terms flexible? Look for a vendor who offers flexible pricing structures that can be tailored to your needs and transparent licensing agreements, so you know exactly what you're getting for your money.

In addition to the questions above, it is also important to ask a SaaS vendor what other methods they employ to help keep their customers agile such as having regular conversations about progress, providing insights on best practices, etc.

By considering these questions, B2B companies can assess a SaaS vendor's agility and determine if they are the right fit for their business needs. With the right vendor, businesses can more easily adapt to changing markets and leverage the latest technology to stay competitive.

Your software architecture is the foundation of your business agility. When you select a vendor, ensure their system can adapt as your needs change. In times of economic turmoil, it's more important than ever to be agile and responsive to customer needs, and your choice of SaaS vendor can make all the difference.

To kickstart your agile transformation or to know more about agile B2B SaaS solutions, click here .