Navigating the Next Wave of B2B Digital Commerce: Trends and Insights for 2023 - Build What's Next
Blog

Navigating the Next Wave of B2B Digital Commerce: Trends and Insights for 2023

1458

Of your peers have already read this article.

1:30 Minutes

The most insightful time you'll spend today!

B2B eCommerce is expanding with consumer-like experiences, omnichannel sales, and automation. As demand grows, Commercetools predicts continued digital transformation in B2B commerce in 2023, driven by new technologies and evolving customer needs.

Editor’s note: Google Cloud partner commercetools shares how modern technologies like composable commerce, cloud-native infrastructure and artificial intelligence/machine learning (AI/ML) will lead the way in business-to-business (B2B) digital commerce this year.


Digital commerce in B2B has been predicted as the next big thing for years; yet, at the start of COVID-19, 60% of B2B companies had zero or limited eCommerce capabilities. The pandemic accelerated digitization and eCommerce has finally taken off: As of February 2022, 65% of B2B companies offered eCommerce capabilities.

The behavior of B2B buyers is also changing: Consumer-like expectations are at the heart of successful B2B commerce, and this is how manufacturers, distributors and wholesalers will shape their customer experiences. Today, 73% of B2B buyers want a personalized business-to-consumer or B2C-like experience. 83% prefer ordering or paying through digital commerce and 72% are eager to purchase across channels.

With digital commerce dictating how B2Bs will grow in 2023 and beyond, what trends will spur digital transformations across this business model? Here’s what the team at commercetools expects to unfold in B2B eCommerce this year.

#1 B2B firms are switching to cloud-native, composable commerce

B2B players still plagued with manual processes and siloed backend systems will move away from monolithic platforms and choose composable commerce. In a nutshell, composability enables businesses to select best-of-breed components, such as search, cart or checkout, and “compose” them into a custom application.


B2B firms will modernize their commerce backend, interoperating siloed systems like Configure Price Quote solutions (CPQs) for sales and enterprise resource planning solutions (ERPs) for order entry with an API-first and composable commerce stack. They will also pivot from on-premise deployments to cloud-native architectures as the baseline for auto-scaling capabilities instead of pre-provisioning online capacity during traffic peaks. That way, B2Bs can customize customer-centric experiences to boost revenue while reducing the complexity and cost of in-house IT infrastructure, as well as gaining operational efficiencies

B2Bs will maximize the cross-section of composable commerce and cloud-native infrastructure by leveraging a commerce backend like commercetools Composable Commerce hosted on Google Cloud. This combined solution provides commercetools’ ready-to-use components built as microservices and exposed as APIs, such as product information management (PIM) and unified cart, integrated through the Google Cloud Marketplace.

#2 Strong focus on data quality and personalization

Focusing on data quality continues to be a big trend in 2023. B2B buyers expect product, pricing, inventory and shipping data points to be accurate across every touchpoint so they can make better purchasing decisions, such as when to order products and calculate quantities.

With so many data points to capture throughout the customer journey — product, inventory, pricing and customer data — we’ll see more B2B companies reorganizing their vast information pools to elevate customer experiences. They will pivot to modular and API-first solutions, plus flexible data models, so they can break data silos from legacy monolithic platforms and access such data when needed.

We also expect to see more customer analytics to unlock data on buyer behavior. By understanding what customers see, click and add to their shopping lists, B2B businesses get valuable insights into how buyers behave, using this data in the shopping journey according to product interests. That way, it’s possible to offer personalized experiences across touchpoints without hassle.

“It is important for B2B companies to look at their data as if it is one of their products; invest in its upkeep and integrity while finding ways to continuously improve it. Using advanced analytics powered by AI and ML to identify patterns from large amounts of data, B2B companies can activate insights into customer decision journeys to maintain loyalty, personalize experiences to improve satisfaction and boost revenue, while also finding ways to optimize costs. For example, with analytics, enterprises can streamline spend to focus on the highest-performing channels and reduce waste.”Carrie Tharp, Google Cloud VP of Retail and Consumer

With data-driven tools coming into play like Google Cloud’s Discovery AI, Recommendations AI and Vision Product Search connected with composable commerce, B2B players can boost customer analytics to personalize experiences, improve customer satisfaction and reduce churn.

#3 The B2B customer experience will be redesigned

B2B players are taking a page out of the B2C playbook to elevate experiences throughout the customer journey. While intense work needs to happen in the backend commerce engine, B2B players will also redesign their digital frontends. That means boosting website performance, while mobile responsiveness and personalization will be at the forefront of these advanced digital initiatives.

More than ever, B2B companies are looking for digital storefronts delivered as progressive web applications (PWAs) for optimized performance and responsiveness across devices, as well as fast-loading and responsive experiences to boost your digital presence, SEO rankings and conversion rate. B2Bs can further streamline frontend development with solutions natively connecting to Google Cloud Marketplace, which supports a variety of storefront providers, including commercetools Frontend.

Leveraging Google Cloud’s unique capabilities, such as PWA web app development, Google Cloud Discovery AI solutions that include Retail Search and Vision API Product Search, among many others, B2B companies are well positioned to boost digital commerce in the years to come.

What’s next in 2023?

2022 was already a turbulent year; for better or worse, 2023 is expected to have a similar fate. For B2Bs, even the ones with tight budgets, investing in digital commerce can help future-proof businesses for whatever’s happening this year. To dive deeper into all predictions and insights by commercetools in collaboration with Google Cloud, read the guide Pivotal Trends and Predictions in B2B Digital Commerce in 2023.

Blog

Explore Google Cloud’s Bi-monthly Technical Learning Series for Innovators in Public Sector

3347

Of your peers have already read this article.

1:30 Minutes

The most insightful time you'll spend today!

There were over a thousand new features release across hundreds of services in Google Cloud. To keep up with the pace of technology evolutions, Google Cloud Public Sector Technical Learning Series makes learning concise and engaging for engineers!

Cloud engineers face a constant barrage of new cloud services, products, and innovations. By late 2021, Google Cloud alone had released thousands of new features across hundreds of services. Couple this with other technologies and service releases, and it quickly becomes a herculean task for engineers to navigate, consume, and stay current on the ever changing technology landscape. We have heard from engineers this often leads to anxiety and frustration as engineers struggle to keep up. They are faced with a plethora of training options but often lack the time and funding. 

Google Cloud has reinvigorated technical training to make it more informative and applicable to public sector customers and partners. We aim to maximize your training experience so you can get targeted training when you need it. The Google Cloud Public Sector Technical Learning Series addresses customer feedback and provides fun and practical training. Sessions are currently running every two weeks. 

“Short and sweet” technical topics geared to subjects you care about

Generic training doesn’t always resonate with public sector technologists. Our new curriculum targets specific public sector use cases, is delivered by customer engineers, and can be accomplished in less than two hours.  This means participants can apply the learnings directly to real-life challenges quickly. 

Easy to find, easy to enroll 

Training opportunities should always be at your fingertips. Our automated training platform will ensure that you only need to enroll once. The system will automatically notify you of upcoming sessions so you can plan in advance and at your convenience. Sessions will be offered on a recurring basis to meet the needs of your organization.

Fun and engaging

Typical training sessions often include a sea of glazed eyes, unresponsive to basic prompts, falling asleep at our desks, we have all been there. But it doesn’t have to be this way. Our goal is to infuse Google culture into our training through interactive exchanges and tangible rewards to keep participants inspired and engaged.

Traditional technology training doesn’t always help you navigate the nuts and bolts of how to effectively introduce a product into an organization. But we know that technology doesn’t operate in isolation; it supports and becomes part of a living organism, managed by humans and confined by other components of an organization’s structure (e.g. existing systems or decentralized business units). 

Part of a larger community of like-minded engineers

Learning with – and from – a community of peers is one way to overcome the challenges and complexities of applying new technology within a complex organization. We created the Public Sector Connect community for this very reason. It is one example of how we surface best practices for public sector innovators. During weekly “Coffee Hours” and working sessions, our community members share their journey and lessons learned with each other. We know that innovation evolves through iteration and diverse perspectives, and Public Sector Connect is committed to helping surface critical challenges and solutions, and connecting those who are solving similar problems. Join the community today.

Whitepaper

Transitioning from Amazon Glacier to Google Cloud

DOWNLOAD WHITEPAPER

1121

Of your peers have already downloaded this article

5:30 Minutes

The most insightful time you'll spend today!

This comprehensive guide provides a detailed process for migrating archival workloads from Amazon Glacier to Google Cloud Storage Nearline in the Indian context. The process involves carefully planning data retrieval and staging strategies to ensure an efficient and cost-effective migration.

The whitepaper includes:

  • Different storage methods on Amazon Glacier and their respective retrieval processes.
  • Recommendations on managing retrieval costs to avoid high charges from Amazon Web Services.
  • The recommended rate for data availability and download to prevent unnecessary repetition of the process.
  • Utilization of Google Compute Engine for data staging, if stored directly in Amazon Glacier.
  • Use of command-line utility, gsutil, or the Storage Transfer Service for transferring data from the staging location to Google Cloud Storage Nearline.
  • Insights to achieve a streamlined and economical migration process from Amazon Glacier to Google Cloud Storage Nearline.
Blog

Go Green with Google’s Latest Tool and Pick the Most Sustainable Cloud Region

5661

Of your peers have already read this article.

1:30 Minutes

The most insightful time you'll spend today!

Google's sustainability initiative to turn carbon-free by 2030 is followed by the release of its latest tool. The tool helps pick a cloud region, taking into consideration variables such as price, latency and lowest CO2 levels.

As a Google Cloud customer, your carbon footprint is already carbon neutral: Google first achieved carbon neutrality in 2007, and has been purchasing enough solar and wind energy to match 100% of its global electricity consumption since 2017. Now, Google is targeting a new sustainability goal: operating on carbon-free energy (CFE) 24/7, everywhere, by 2030. 

We want to empower you to make more sustainable decisions and progress with us towards this 24/7 carbon-free future. Earlier this year, we published the carbon characteristics of our Google Cloud regions. Later, we introduced a simple tool to help you pick a Google Cloud region, taking variables like price, latency and sustainability into account. Our next question was: what’s the best way to surface that sustainability info when you’re actually picking a region for your cloud resources? 

Starting today, we are indicating regions with the lowest carbon impact inside Cloud Console location selectors. Available today for Cloud Run and Datastream, you’ll see it roll out to more Google Cloud offerings over time:

Cloud Run region selector.jpg
Click to enlarge

Regions that feature the “Lowest CO2” and the leaf have a CFE% of at least 75%, or, if the information is not available for this region yet, a grid carbon intensity of maximum 200 gCO2eq/kWh. You can read more about how we calculate these metrics in our documentation.

Before releasing this feature, we ran experiments to measure its impact: Users who were exposed to the enhanced region picker were 19% more likely to select a “low carbon” region for their Cloud Run service—a significant lift. These results show that by displaying carbon information in context of when you make the decision of picking a region, we are helping you make more sustainable decisions.

By sharing and displaying carbon information of Google Cloud regions, together we’re making tangible progress towards our goal of a carbon-free future. Learn more about Carbon free energy for Google Cloud regions.

Blog

Why Moving SAP Workloads to Google Cloud is Beneficial for the Consumer Goods Industry

3637

Of your peers have already read this article.

3:00 Minutes

The most insightful time you'll spend today!

The consumer packaged goods (CPG) industry running on SAP systems can leverage Google Cloud to unlock its data analytics capabilities to reduce Opex, drive innovation, business outcomes and meet consumer expectations. Learn how!

Even before the COVID-19 pandemic struck, the consumer packaged goods (CPG) industry was facing disruption. Consumers have come to expect personalized and seamless experiences at every point in their relationship with a brand. Additionally, consumers are expecting CPG brands to meet rising standards for sustainability, social responsibility, and transparency. Business models are shifting as well. Direct-to-consumer and subscription models have been gaining ground on traditional business models. Add in the CPG industry’s ever-present pressure for wider profit margins and the effects of the global pandemic, and you get a perfect storm of disruption. 

Leading CPG companies are responding to these changes by capitalizing on the potential of emerging technologies and leveraging the power of the cloud to create digital enterprises. In doing so, they can unlock value through reduced operational costs, faster innovation, improved marketing ROI, and greater transparency and sustainability—among other benefits. For businesses that run on SAP, accessing these benefits requires creating a digital enterprise with SAP at its heart. 

What CPG can expect from SAP on Google Cloud

SAP drives core business processes across most enterprise functions in CPG companies, and modernizing these operations is step one in unlocking next-level data and analytics capabilities. Creating a digital enterprise with SAP at the core requires establishing a digital foundation on a cloud platform capable of supporting and optimizing SAP workloads well into the future. From there, CPG companies can leverage the combination of SAP data and additional data signals to support high-value use cases utilizing the advanced analytics capabilities of the cloud

For CPG companies, running a successful digital enterprise in this climate depends on the power of the cloud because of the unmatched agility, security, scale, and flexibility offered by cloud technologies. More and more, consumer brands are turning to Google Cloud to host their applications—including core enterprise applications such as SAP—to drive business agility and maximize the value of data through smart analytics and machine learning. Google Cloud establishes a digital foundation for SAP customers by simplifying SAP deployments and offering  a suite of applications that integrates with and enhances SAP functionality. A Forrester study on the total economic value of Google Cloud for SAP customers found an average payback of less than six months and a total ROI of over 160%. By turning to Google Cloud to run their SAP systems, companies are able to: 

  • Maximize insights 
    CPG enterprise data is often fragmented across disparate systems. Google’s analytics tools including BigQuery and Looker allow businesses to connect customer, operational and business data at scale by unifying data from SAP systems with other Google data signals such as Ads, Maps, Shopping or Google Marketing Platform. This precious data is fully democratized, allowing for complex queries to be completed rapidly so companies can uncover and analyze insights and create an end-to-end view of the consumer and the business.
  • Create an intelligent organization
    Google’s AI and machine learning capabilities allow businesses to create built-in intelligence. Instead of reacting to trends, they can accurately predict them. For marketing teams, this could be the ability to evaluate promotions and effectiveness of marketing spend. For forecasting, product quantities and restock timing can be better planned. Supply chain optimization can include external data sources to closely monitor inventory and eliminate stock outs. 
  • Future-proof your business
    Running SAP systems on Google Cloud creates an agile, secure and highly available environment that scales quickly as a business grows and as the CPG market evolves. A recent study conducted by IDC showed that SAP on Google Cloud deployments resulted in a 46% lower three-year cost of operations with 83% less frequent unplanned downtime and 56% more efficient IT teams. This frees IT resources to drive innovation and customer centricity. 
  • Deliver on sustainability 
    Around the globe, consumers are becoming more and more demanding regarding sustainability. The impact of climate change and the abundance of plastic waste is only fueling this trend. Consumers are leaning into social signalling, and CPG companies are taking note. Sustainable IT is step #1, significantly advanced by  moving applications to Google Cloud, the cleanest cloud in the industry. We’ve neutralized all of our carbon emissions since our founding in 1998 and matched 100% of our electricity consumption with renewable energy purchases since 2017. Google Cloud allows SAP enterprises to further drive sustainability compliance and business objectives with AI and ML tools that can drive down waste and provide real-time decision making power to support proactive green initiatives. 

Rémy Cointreau is in high spirits after deploying SAP in the Google Cloud

Rémy Cointreau, a family-owned international maker of fine spirits, has products that can take up to one-hundred years to produce. But this long production cycle presents some unique challenges in today’s hyper-competitive premium beverage brands market. Since 1724, the company has been consumed with putting its customers first. In 2020, the company realized it was failing to capitalize on the benefits that the cloud can provide and began searching for a business partner that could help with this transformation.  

Rémy Cointreau made the move to Google Cloud for many reasons. First, the company could connect its SAP backbone to key SaaS applications like Salesforce. This enabled the creation of a 360-view of data among its ecommerce platform, SAP, and Salesforce to deliver sophisticated customer experiences that reflect the heart of the brand. The Rémy Cointreau team quickly realized they now had the ability to be more agile in their finance, manufacturing, and supply chain functions with easy access to valuable SAP system data that drives decision-making. Sebastien Huet, the company’s CTO, explains: “Now that we’re fully deployed on Google Cloud Platform, anything is possible. We can pull data in from multiple sources via integration and analyze it in a matter of days. We don’t need a three-month project to see value.”  

In today’s on-demand, omnichannel world, it’s not enough for CPG brands to understand their consumers. For companies like Rémy Cointreau, it is mission-critical that they anticipate consumer preferences and deliver personalized experiences. The winners will be the companies that can reduce time to insights by treating all their data as strategic assets, breaking down data silos to enable real-time business intelligence. With SAP on Google Cloud, CPGs are transforming consumer relationships and business outcomes.

Are you ready to change how your CPG brand operates? Check out this video and read the Google Cloud for SAP CPG customer white paper and ebook.  Learn more about how your peers are leveraging SAP on Google Cloud to evolve their businesses.

Blog

Italian Utility Company Deploys its SAP Workloads on Google Cloud to Meet Sustainability Goals

3256

Of your peers have already read this article.

2:00 Minutes

The most insightful time you'll spend today!

A2A, Italian utility company needed a highly flexible, hybrid environment and robust data management and analytics to be more data-drive and customer-centric. Moving SAP data to Google Cloud is the key to incorporate 'circular economy' principle!

With more than 2.5 million customers, Italian utility company A2A is committed to delivering electricity, gas, clean water, and waste collection every day. More recently, the company made another significant commitment: To incorporate the principles of the “circular economy” into its way of doing business — part of the UN 2030 Agenda’s Sustainable-Development Goals — all while also aiming to double its client base by 2030. Growing rapidly but sustainably requires operating as efficiently as possible at every level of the organization, from operating smart meters to generating accurate demand projections. That’s why A2A chose to deploy its SAP S/4HANA ERP and the SAP BW/4HANA data warehouse on Google Cloud.

Roadblocks to innovation


Instead of a linear consumption model that starts with raw materials and ends with use and disposal, the circular economy is a continuous cycle that emphasizes repair, recycling, and the creation of materials rather than their disposal. To take an example from A2A’s own success story: The company keeps 99.7 percent of collected waste out of landfills.1 Of the UN’s sustainability goals, A2A is committing to the three most relevant to its industries:

  • Ensuring availability and sustainable management of water and sanitation for all
  • Ensuring sustainable consumption and production patterns
  • Protecting, restoring, and promoting sustainable use of terrestrial ecosystems

Achieving A2A’s sustainability and customer-first strategies requires high scalability, rapid data ingestion, and rich, accurate analytics. None of this could be reliably supported with the company’s legacy on-premises SAP and Data Warehouse, especially given A2A’s projected growth and the increasing complexity of the data landscape, including IoT deployments and energy market liberalization.

Provisioning data infrastructure was also slow and complex. Simply adding a new metric could require increasing capacity by an order of magnitude. And analytical and transactional data lived in siloes, which created a fragmented and out-of-date view of each customer across sales and customer support teams. A2A’s fragmented data also made it difficult to take proactive action when changing priorities or processes required shifting focus from one data source to another.

With a data warehouse that refreshed only once every 24 hours, simple processes such as responding to a customer calling because their power has been cut off due to an unpaid bill became cumbersome.

Scalability was also a concern. With the on-premises solution, A2A needed to define the budget for its data warehouse over a two-year timeframe, but the rollout of new electricity meters — each sending data every 10 minutes — across Italy made those data requirements hard to predict.

The move to the cloud: From monolith to microservices


The move has been a giant step forward in A2A’s goal of meeting its data-driven, customer-centric strategy. In deploying its SAP systems to Google Cloud, A2A can take advantage of a highly flexible hybrid environment and powerful data management and analytics. It can replicate data from Salesforce, SAP, and other systems in BigQuery, which operates as a data lake with Google Cloud SQL, connected directly to Google Analytics and Google Ads for data-driven customer service, decision-making, and marketing.

From BigQuery we can feed relevant information directly to the people who need it. Our customer operators work on Salesforce, so we use an OData protocol to embed real-time data in that platform. Elsewhere, we present the information through a dashboard, or with a BI component delivering one-page reports.” —Vito Martino, Head of CRM, Marketing and Sales B2C & B2B, A2A

By running SAP on Google Cloud, A2A can also count on an infrastructure platform that provides:

  • Scalability. The robust data architecture on Google Cloud adapts to shifting and increasing demands without compromising on speed or availability, so A2A doesn’t have to worry about over- or under-provisioning as the rollout of smart meters proceeds.
  • Speed. The new A2A data solution refreshes every five minutes instead of 24 hours, so the company can respond to its customers’ needs without delays. Customer operators working in Salesforce now receive real-time data from Google BigQuery so that, when a customer calls, operators can see accurate information in seconds. They can now offer value-added services and sustainable options tailored to the customer’s needs, from energy consumption to their preferred method of communication.
  • Availability. With microservices orchestrated by Google Kubernetes Engine, the team can update the solution through continuous integration and delivery (CI/CD), eliminating the need for downtime when changes are required.
  • Security and control. The A2A IT team uses Google Kubernetes Engine to orchestrate clusters of instances on Google Compute Engine, with Google Cloud Load Balancing and backups on Google Cloud Persistent Disk. Google Cloud Anthos ensures operational consistency across on-premises and cloud platforms.

Ready to grow the sustainable way


By moving to Google Cloud — the industry’s cleanest cloud, with zero net emissions — A2A is ready to grow quickly while locking down the efficiency it will need to meet its ambitious sustainability goals. “To bring sustainable utilities to market, we need to be both responsive to our customers and responsive to the internal needs of A2A,” explains Davide Rizzo, Head of IT Governance and Strategy at A2A. “Understanding what customers need in detail means we can improve their services and reduce their environmental impact at the same time.”

Learn more about the ways Google Cloud can transform your organization’s SAP solutions with scalability, speed, and advanced analytics capabilities.

1.  Circular Economy: one of the four founding pillars of A2A’s 2030 sustainability policy | Drupal

More Relevant Stories for Your Company

Blog

Hybrid Work with Google Workspace: What Customers can Expect

In June, we shared our vision for navigating the future of hybrid work with a single connected experience in Google Workspace. Now, as many of our customers begin to embark on their own hybrid journeys, I wanted to share how we’re helping them bridge the gaps in this new way of

Whitepaper

Application Modernization Made Easy

Modernizing apps on the cloud isn’t an “all or nothing” decision. Businesses want the option to modernize on-premises or choose multi-cloud solutions that meet their needs. That’s why we created a new solution for running apps anywhere – simply, flexibly, and securely. Embracing open standards, Anthos lets you run your applications, unmodified,

Explainer

Why Enterprises Should Choose Google Cloud for their SAP Workloads

Change is a constant for SAP customers. Now more than ever, SAP customers need solutions that provide them business agility, rock solid availability and security and true economic value. Learn how Google Cloud can guide your SAP journey to the cloud with simple and no cost migrations, powerful infrastructure and

How-to

Five Ways Cloud Computing Helps Companies Optimize Operations and Lower IT Costs

There is no one way to recover. The past year has seen unprecedented challenges for business across the world, with social distancing and quarantine measures forcing many organizations to quickly adapt to remote working. A new report from BCG Platinion, titled “Finding a New Normal in the Cloud”, points out that while companies

SHOW MORE STORIES