The Future is Now: Technologies Shaping CommerceHow Digitalization is Changing the Buying Experience and Sellers Perceptions of Technologies That Enable It.EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 1CONTENTSWhat the digital economy offers us : 2the good and the badLeveraging data to delight 5The truth on digital transformation 7B2B vendors are preparing for buyers shifting 9to eCommerceWhy artificial intelligence (AI) will be essential 13to continued success Stay innovative and competitive 18EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 2What the digital economy offers us: the good and the badB2B enterprises are becoming increasingly comfortable in adopting technology; but are they prioritizing the right ones?The digital economy has created conveniences many of us couldnt imagine two years ago, let alone five years ago. Have a problem? You can probably find something on Amazon thatll fix it within 30 seconds, order it with one-click, and have it arrive within hours. You dont even have to reach for the remote for Netflix to queue up another program youll like after youve exhausted your latest series whilst waiting for your problem-solver product.With B2B following on the heels of refined B2C experiences, the B2B customer has a lot to look forward to. We know that data and transparency have helped to improve B2C experiences en masse. Smart B2B organizations are following the B2C lead to strategically utilize their piles of data to better understand, predict, and serve their customers needs. The smartest organizations are transforming their organizations for continuous learning through the integration of artificial intelligence.We understand that the digital transformation journey is unclear and uncertain. Often, for many enterprises, it can appear to be a journey that begins with teams headed out in opposing directions as they wrestle to determine the platforms that will stand the test of EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 3time, adoption, and championship. Alliances may form based upon willingness to manage yet another userID and password. Even when implementation is complete and youve met adoption requirements, is there anyone left who remembers the comparable value from which to derive your ROI calculation?We did this study to better understand where B2B enterprise vendors were in their digital transformation journey. We wanted to understand their levels of confidence in technology adoption, where they were stressing with eCommerce, and how they expect AI will make them even better vendors in the future.An international study, conducted by Hanover Research on behalf of PROS, examined the expectations and digital initiatives of more than 700 decision-makers at B2B companies. Respondents represented a number of industries, including process manufacturing, medical, automotive and industrial manufacturing, B2B services, and distribution.This eBook highlights key findings from the study, showing how companies can stay current with their approach to commerce and ready themselves for the future. Well share key tips on how companies can capitalize on the digital economy by providing personalized, frictionless experiences for their customers.58%58 percent of companies have started their digital strategy journey41%41 percent said a digital transformation is currently planned7/10At least seven in ten think that each element of digital strategy is either very or extremely importantEBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 4It is not enough to talk the talk companies need to implement new digital technologies to reap the full benefits and keep customer satisfaction high.$5B+ $1B TO < $5B$500M TO < $1B $250M TO < $500MLarger companies lead the way with driving digital transformation, likely as a result of budgets that allow them to do so. Regardless of company size, organizations should take the time to research which elements of digital strategy are most important when it comes to meeting customer needs.Reducing costs through automation68%81%79%75%Increasing revenue through new channels68%81%79%75%Delivering personalized offers to customers66%82%77%69%Enabling coordinated experiences across channels70%82%80%70%Streamlining the buying experience for customers70%87%81%75%EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 5Leveraging data to delightCompanies of all sizes understand that leveraging data and digital experiences can provide significant competitive advantage.What does it mean to get commerce in the digital era right? It means ensuring that you are providing delightful experiences that are personalized, even when those interactions are coming through digital platforms. It means remembering who your customer is, what they last ordered, and predicting why they might be reaching out today.Digitization means that customers have greater transparency into competitive offers and often a lowered cost of switching vendors. While this may put more negotiation power into the hands of the customer, the vendor now has a wealth of data and the smart vendors will leverage artificial intelligence to predict customer needs and personalize offers.EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 640%Wholesale distributionDiscrete manufacturingProcess manufacturingServicesDigital transformation planned for the next 12 months43%38%23%Digital transformation currently underway50%55%56%71%Personalization is a win-win. Those that get it right not only drive more efficient and effective sales processes, their customers also recognize that the vendor has a deep understanding of their needs. Often the vendors ability to predict customer needs drives a higher value perception of that vendor and, subsequently, greater stickiness and loyalty.Current & Future Digital Transformation PlansEBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 7The truth on digital transformationCompanies believe that they are keeping current with the latest digital economy trends, but are they doing enough?Digital transformation is certainly a buzzword in the business world, but what exactly is it? Essentially, it is defined as the use of digital technology to transform how your business operates. There are more opportunities than ever before for systematically leveraging information beyond human capacity at every decision point and in every interaction.Nonetheless, numerous studies have found that the majority of such initiatives fail. Is it because businesses are not sure where to begin with implementing new technologies? Or, are they simply investing in the wrong areas?Our study indicated that companies may be overconfident in their digital transformation initiatives.Sixty-six percent to 73 percent said their organization was above average or excellent in trusting their ability to use technology for various purposes. Almost all companies are either interested in, or have invested in, technology to support revenue-generating activities, but the majority has not yet implemented the necessary technologies.EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 8Dynamic, real-time pricing Personalized prices and promotionsCoordinated buying experience across channelsInvested in atechnology80%81%83%Implementeda technology43%39%43%EBOOK | THE FUTURE IS NOW: TECHNOLOGIES SHAPING COMMERCE 9B2B vendors are preparing for buyers shifting to eCommerceWhile eCommerce offers significant cost reductions, threats of perceived commoditization loom.Today, one in five of survey respondents are seeing a majority of sales come through eCommerce. Three in five of these same respondents expect that theyll be achieving more than half their sales from eCommerce within five years. These vendors certainly see eCommerce as advantageous 72 percent responded so.Respondents said eCommerce is an easy way for customers to learn about their products, services, and enable self-serve (read: “lower-overhead”) purchasing. Additionally, eCommerce can reach customers worldwide, helping companies create a more diverse marketplace with sustainable growth.