The business-to-business market will experience a number of big changes in the years to 2030, according to a new report from customer experience firm Merkle. APAC regional B2B companies will need to consider their investment levels in a range of technologies and integrate new tools now to prepare and adapt to the coming changes.
He B2B Futures: The Vision from 2030 report argues that four key “seismic” trends are reaching B2B:
- An increase in machine-to-machine trading.
- Improved supply chain traceability.
- The dominance of B2B digital markets.
- Radically accelerated speed to market.
Jake Hird, vice president of strategy at Merkle B2B – APAC, told TechRepublic that B2B companies in the region will need to respond with investments in technologies including IoT, AI, data analytics and blockchain to ensure they adapt to these changes affecting their businesses and markets.
IoT to facilitate an increase in machine-to-machine commerce
Machine-to-machine commerce will grow to account for a third of all B2B business by 2030, Merkle said. In practice, this will see the extension of current automated decision-making tools, such as replenishment systems for retailers that automate the purchasing of new inventory from factories, towards more complex but still commodity decisions, supported by AI. .
Image: Merkle
Hird said this trend would require B2B companies to increasingly prioritize investments in things like IT infrastructure, artificial intelligence and machine learning tools, blockchain technology and cybersecurity.
Internet of Things
The growth of machine-to-machine commerce will largely depend on the adoption and deployment of IoT tools, which will need to be integrated across the B2B market. “IoT devices, sensors and networks will form the backbone of m2m commerce,” Hird said.
While acknowledging the unstable growth to date in the IoT market, Merkle said IoT has matured. The Merkle report predicted that IoT devices would soon be a key source of data for B2B companies that need to “identify and forecast business needs, ranging from potential out-of-stocks to degraded equipment that may need replacement, and transact accordingly.”
Blockchain and smart contracts
Machines will have the means to transact with other machines using blockchain. “Blockchain technology and smart contracts will ensure secure and transparent transactions, allowing machines to execute agreements without human intervention,” Hird said.
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Edge computing infrastructure
B2B companies will need to invest in edge computing infrastructure to support increased real-time data processing and purchasing transactions across their footprints and supply chains.
Data management and integration platforms.
B2B companies will need to collect, process and analyze more information, so investment in data management will be important. This will include overcoming integration challenges and leveraging systems interoperability to generate the insights needed to power the systems.
Cybersecurity systems
According to Merkle, cybersecurity solutions will be crucial to protecting transactions from unauthorized access as well as other online threats. “Businesses will need to invest in measures such as intrusion detection systems and advanced encryption technologies,” Hird said.
Blockchain and distributed ledger technology to provide supply chain traceability
Supply chain traceability could become one of the top two purchasing drivers for B2B by 2030, due to consumer and market pressure. This will increase the adoption of blockchain and distributed ledger technology as companies seek to deepen the transparency and trust of their supply chains.
Blockchain and distributed ledger technology
The Merkle report suggests that blockchains, the most common form of distributed ledger technology, could help “shed light on byzantine global supply chains” by providing access to certification data, sourcing practices and environmental impact, even calculating carbon footprints. These technologies could help companies enforce sustainability standards.
RFID and IoT tags
The availability, decreasing costs, and miniturization of RFID tags and IoT sensors will see IoT play a critical role in traceability. This is expected to enable real-time tracking and monitoring of products as they move along the supply chain, from sourcing to sale.
Data analysis and artificial intelligence tools
B2B players will need data analytics and artificial intelligence to gain insights from the data generated by supply chain traceability systems. “Through real-time analytics, companies can optimize inventory management, anticipate demand fluctuations, and mitigate supply chain risks,” Hird said.
Integration readiness to support the rise of B2B digital marketplaces
B2B digital marketplaces are expected to capture 50% of B2B business by 2030, up from 15% in 2024. This shift will drive B2B organizations to focus on implementing e-commerce platforms to develop a presence in growing digital marketplaces or Dive in and build your own markets. own.
Analysis and customization tools.
Analytics and personalization will allow companies to gain insight into customer behavior and preferences, Hird said. This will help B2B companies fine-tune marketing and communications for individual B2B buyers, improving customer experience, engagement and revenue.
Integration and API solutions
Digital marketplaces rely on systems integration to facilitate customer transactions and shopping experiences. Companies will need to invest in API and integration solutions to connect internal and external systems and platforms to optimize operations and improve efficiency.
Supply Chain Optimization Technology
Digital marketplace models also require B2B companies to meet demands such as faster delivery times and efficient order fulfillment from their marketplace presence, Hird said. He argued that this will encourage B2B companies to adopt more supply chain optimization technologies.
Design and prototyping tools to accelerate B2B speed to market
Major changes are expected in the way B2B brands design, test and deliver products to market. For example, in pharmacology, Merkle said, although it can take 10 to 15 years to bring a drug to market, faster drug discovery and clinical trials could shorten this process dramatically.
Generative AI and virtual prototyping
Prototyping and functional product design processes can be empowered with generative AI and virtual prototyping technologies, Hird told TechRepublic. By using simulations and design tools that augment human input and traditional methods, companies will be able to significantly reduce the time and cost associated with physical prototyping and testing.
“This enables faster iteration cycles, accelerating the product development process and improving the speed to market of new products and innovations,” Hird said.
