The Dynamics Of The Evolving B2B Tech Buying Landscape - Part II
Abstract
Part II of the article discusses the evolving landscape of technology procurement and the challenges and opportunities facing technology providers in selling their solutions.
In the previous Part I of this article, we explored the evolution of technology solutions driven by advancements in data science, cloud computing, and artificial intelligence. This has led to complex solutions requiring coordination among multiple components, making defining and measuring their value challenging. To address this, a shift towards outcome-centric solutions is emphasized, where providers must demonstrate business outcomes economically and strategically. This approach aligns technology features with industry-specific use cases, showcasing a direct impact on the client's bottom line. The article discusses the complexity of B2B tech targeting in today's landscape, where decision-makers are dispersed across various enterprise departments. Providers must understand diverse stakeholder needs and engage with cross-functional buying teams.
In Part II, we will highlight the need for collaboration between technology vendors and buyers to prepare business cases. Understanding the value hierarchy within buying teams is crucial for tech providers, as stakeholders assess initiatives based on their unique priorities. C-suite executives are playing an increased and pivotal role in technology adoption, evaluating investments based on the enterprise strategy and business impact. Their sponsorship and advocacy are essential for driving transformative change effectively, requiring compelling economic justifications addressing urgency, willingness to change, and risk assessment.
Each point is condensed to maximize the reader’s time; however, to learn more about any of the following trends, feel free to contact the StrategyOps Institute to speak with one of our Value Engineering experts.
In the previous Part I of this article, we explored the evolution of technology solutions driven by advancements in data science, cloud computing, and artificial intelligence. This has led to complex solutions requiring coordination among multiple components, making defining and measuring their value challenging. To address this, a shift towards outcome-centric solutions is emphasized, where providers must demonstrate business outcomes economically and strategically. This approach aligns technology features with industry-specific use cases, showcasing a direct impact on the client's bottom line. The article discusses the complexity of B2B tech targeting in today's landscape, where decision-makers are dispersed across various enterprise departments. Providers must understand diverse stakeholder needs and engage with cross-functional buying teams.
In Part II, we will highlight the need for collaboration between technology vendors and buyers to prepare business cases. Understanding the value hierarchy within buying teams is crucial for tech providers, as stakeholders assess initiatives based on their unique priorities. C-suite executives are playing an increased and pivotal role in technology adoption, evaluating investments based on the enterprise strategy and business impact. Their sponsorship and advocacy are essential for driving transformative change effectively, requiring compelling economic justifications addressing urgency, willingness to change, and risk assessment.
Each point is condensed to maximize the reader’s time; however, to learn more about any of the following trends, feel free to contact the StrategyOps Institute to speak with one of our Value Engineering experts.
Part II
1. Business Value Assessment: The Vendor-Buyer Collaborative
Business line leaders and C-suite executives increasingly stress the importance of a compelling business case, not just for justifying investments but also for explaining the business value and urgency inherent in tech purchases. In today's landscape, B2B tech buyers welcome external assistance, frequently turning to their technology providers for support in crafting these business cases.
Approximately 65% of executives involved in technology decisions request quantified business cases during the evaluation stage, alongside a demand for thorough validation of assumptions and data, drawing from diverse stakeholders across business and technology domains. This collaborative approach to decision-making emphasizes organizational objectives over individual preferences, reflecting a shift in the procurement process towards a more multifaceted endeavor.
This collaborative approach ensures alignment with strategic objectives and addresses varied stakeholder needs, emphasizing the significance of a comprehensive and well-supported business case in guiding technology investment decisions.
Tech buyers embark on a journey that starts with identifying stakeholder requirements and ends with validating benefits, outcomes, metrics, urgency, risk, and financial return. This inclusive process fosters a thorough understanding of organizational needs and strategic objectives, culminating in a robust business case articulating operational and strategic value.
2. Hierarchy in the Buying Team: Discovering the Value Levers in the Buying Personas
While many initiatives typically originate at lower levels within the organizational hierarchy, it's essential to recognize that the perception of value may not be consistent across all levels. This value hierarchy is crucial for tech providers, as stakeholders evaluate initiatives based on their functional roles.
From technical capabilities to operational pain points and strategic goals, each constituency brings unique priorities to the discussion. Successful vendors tailor their approach to address these varied perspectives, considering technical, operational, strategic, and financial requirements.
The value hierarchy within buying teams reflects distinct priorities at different levels, influencing decision-making criteria. Technology vendors must navigate these nuances to engage stakeholders and influence purchasing decisions effectively. This entails catering to the diverse needs of stakeholders, from technology teams seeking specific technical characteristics to operational leaders focused on process improvement and C-suite executives evaluating strategic alignment, ROI, and risk.
Understanding and aligning with each stakeholder's priorities is essential for successful technology adoption, ensuring that solutions meet the multifaceted needs of the organization.
3. C-Level Influence: Advocates of Digital Transformation
C-suite executives are increasingly involved in digital transformation because of the importance of intelligent technologies in the workplace and the need to create workflows with data-driven humans + intelligent machines. Consequently, the C-suite is more involved in evaluating, prioritizing, and purchasing technology solutions. Guided by strategic alignment and financial prudence, they assess investments based on their potential to advance overarching business objectives and provide a competitive edge.
Their sponsorship and advocacy lend legitimacy and momentum to technology initiatives, rallying cross-functional teams around a shared vision of innovation and progress. However, successful technology adoption hinges on compelling justifications addressing the degree of urgency, the organization's willingness to adapt, risk assessment, ensuring alignment with organizational goals, and effectively driving transformative change.
Technology providers must equip their marketing, sales, and customer success teams with the means to effectively engage with C-suite executives. This entails providing them with the necessary skills, knowledge, and tools to communicate effectively and understand the priorities and concerns of the C-suite. By doing so, technology providers can increase their chances of achieving high closure rates and outperforming competitors.
Contact the StrategyOps Institute for further information or to speak with one of the StrategyOps Institute value engineering experts.
Approximately 65% of executives involved in technology decisions request quantified business cases during the evaluation stage, alongside a demand for thorough validation of assumptions and data, drawing from diverse stakeholders across business and technology domains. This collaborative approach to decision-making emphasizes organizational objectives over individual preferences, reflecting a shift in the procurement process towards a more multifaceted endeavor.
This collaborative approach ensures alignment with strategic objectives and addresses varied stakeholder needs, emphasizing the significance of a comprehensive and well-supported business case in guiding technology investment decisions.
Tech buyers embark on a journey that starts with identifying stakeholder requirements and ends with validating benefits, outcomes, metrics, urgency, risk, and financial return. This inclusive process fosters a thorough understanding of organizational needs and strategic objectives, culminating in a robust business case articulating operational and strategic value.
2. Hierarchy in the Buying Team: Discovering the Value Levers in the Buying Personas
While many initiatives typically originate at lower levels within the organizational hierarchy, it's essential to recognize that the perception of value may not be consistent across all levels. This value hierarchy is crucial for tech providers, as stakeholders evaluate initiatives based on their functional roles.
From technical capabilities to operational pain points and strategic goals, each constituency brings unique priorities to the discussion. Successful vendors tailor their approach to address these varied perspectives, considering technical, operational, strategic, and financial requirements.
The value hierarchy within buying teams reflects distinct priorities at different levels, influencing decision-making criteria. Technology vendors must navigate these nuances to engage stakeholders and influence purchasing decisions effectively. This entails catering to the diverse needs of stakeholders, from technology teams seeking specific technical characteristics to operational leaders focused on process improvement and C-suite executives evaluating strategic alignment, ROI, and risk.
Understanding and aligning with each stakeholder's priorities is essential for successful technology adoption, ensuring that solutions meet the multifaceted needs of the organization.
3. C-Level Influence: Advocates of Digital Transformation
C-suite executives are increasingly involved in digital transformation because of the importance of intelligent technologies in the workplace and the need to create workflows with data-driven humans + intelligent machines. Consequently, the C-suite is more involved in evaluating, prioritizing, and purchasing technology solutions. Guided by strategic alignment and financial prudence, they assess investments based on their potential to advance overarching business objectives and provide a competitive edge.
Their sponsorship and advocacy lend legitimacy and momentum to technology initiatives, rallying cross-functional teams around a shared vision of innovation and progress. However, successful technology adoption hinges on compelling justifications addressing the degree of urgency, the organization's willingness to adapt, risk assessment, ensuring alignment with organizational goals, and effectively driving transformative change.
Technology providers must equip their marketing, sales, and customer success teams with the means to effectively engage with C-suite executives. This entails providing them with the necessary skills, knowledge, and tools to communicate effectively and understand the priorities and concerns of the C-suite. By doing so, technology providers can increase their chances of achieving high closure rates and outperforming competitors.
Contact the StrategyOps Institute for further information or to speak with one of the StrategyOps Institute value engineering experts.