What about B2B Value?

What comprises valuable business relationships and transactions? How do organisations weigh up their investments? Let's take a look at value in a Business to Business (B2B) context.

I recently asked what is valuable to you, predominantly considering the Business to Consumer (B2C) form. That may be more relatable to some, in comparison to larger, more complex deals between organisations. Which factors affect an investment decision in a product or service? "B2B customer benefits are usually measurable, economic and predictable." (AIM Institute, 2020). Let's take a look at the factors which impact value through a B2B lens.

There is another Harvard Business Review article and model I can strongly recommend: The B2B Elements of Value (2018). It is a slightly different and more complex pyramid, in comparison to the consumer value elements. There are similarities: for example, there is still a mixture of objective and subjective elements, categorised into various tiers. More value for the customer still translates into vertically higher rankings and more loyalty. I must add, the research conducted combines insights from the IT and insurance industries.

What B2B Buyers Really Care About

It was clear for IT Infrastructure that cost reduction was perceived to be pivotal in B2B value by decision makers. Pretty logical, cutting costs can be crucial. The presumption was, that this would be the top deciding factor. Yet the research ultimately identified product quality, expertise, and responsiveness as the most valued elements. In the end, cost reduction came in 27th place in the ranking for impact on value and customer loyalty. This speaks volumes to differentiation and competition for this domain.

I find it fascinating that a Minimum Viable Product (MVP) is one of the ways listed in the HBR (2018) article to create value. That's also what my team at IBM does: innovate to define value, co-create and prove value. IBM Client Engineering is a multi-disciplinary team with thousands of projects in experience (IBM, 2023). Let's take #ClientEngineering as an example and analyse the value it pertains.

Four things you should know about IBM's Client Engineering

1. Solve complex use cases: we innovate user-centric solutions to the most pressing business pain points. These must have measurable outcomes. This corresponds to many different potential sources of value, including: risk reduction, simplification, commitment, cultural fit, innovation, regulatory compliance, ethical standards, design and aesthetics, hope, ...
2. Prove value: we define the solution and deliver value together rapidly, typically in a matter of days or weeks. This helps our Clients and Partners stay ahead of the market with ease. The value: improve top line, cost reduction, information, transparency, acceptable price, product quality, time savings, availability, vareity, vision, ...
3. Innovate to scale: we build with IBM hybrid cloud and AI technologies to deliver secure enterprise scalability. What value does this offer? Configurability, reduced anxiety, reduced effort, decreased hassles, innovation, integration, stability, component quality, reputational assurance, social responsibility, ...
4. Co-create iteratively: we bring deep industry expertise with our team of technology leaders, engineers, data scientists, designers, and architects. Work with us, collaborate with global experts and benefit from proven technology, accelerators, and methodologies. Aspects of value: vision, network expansion, expertise, reputational assurance, reduced anxiety, reach, information, ...

// A side note on value propositions - "B2B Value Propositions begin with customer outcomes."(AIM Institute, 2020). I can also thoroughly recommend this LinkedIn article from Sateesh Hegde via LinkedIn Articles (2022) //

Back to the four things you need to know about Client Engineering! The first point is the outcome for our Clients and Partners. The next two about how we work. The fourth and final point is more about who we are and how we deliver value and confidence in a technical solution.

Let's look at real life examples. Check out this tweet from Rob Thomas with the top five business use cases for Data and Artificial Intelligence, a great example of what we do in Client Engineering.

Source: Twitter (2022)

Can we launch a minimum viable product without breaking the bank?

Making lots of dramatic changes at once can be risky as well as expensive. Why not try an iterative approach? This allows you to make improvements and adjustments based on feedback. "Refine, test, and learn ... These insights can inform rapid, successive improvements to the concepts prior to a market test or a broader rollout." (Harvard Business Review, 2018)

What about with Client Engineering? The answer is a resounding yes! We are an investment in you. If you're interested, please don't hesitate to send a message and reach out.

Let's Create value together.

Let's create something that changes everything.

#LetsCreate

Sources

AIM Institute (2020) The Science behind B2B Value Propositions, URL: https://theaiminstitute.com/business-to-business-b2b/b2b-value-proposition/

Harvard Business Review (2018) The B2B Elements of Value by Eric Almquist, Jamie Cleghorn, and Lori Sherer, URL: https://hbr.org/2018/03/the-b2b-elements-of-value

IBM (2023) IBM Client Engineering, URL: https://www.ibm.com/client-engineering

LinkedIn (2022) What is B2B Value Proposition? And Why Should You Care? by Sateesh Hegde , URL: https://www.dhirubhai.net/feed/update/urn:li:ugcPost:6903185974323490816

Twitter (2022) Rob Thomas, URL: https://twitter.com/robdthomas/status/1580185013043150848