How to prepare a business for digital transformation

How to Start Building a B2B Portal: Project Goals, Architecture Basics, and Common Mistakes at the Start.

  • Why Do You Need a B2B Portal? Why Goal Setting Matters
  • How Do You Write a Technical Specification for a B2B Portal or B2B Marketplace?
  • Should you review all your business processes and optimize them before contacting developers?
  • The result can be expressed in the following quantitative metrics:

Introduction

Creating a B2B portal or B2B marketplace is a major step in a company's development. In this article, we will look at the most common mistakes clients make when preparing to implement B2B systems. Reading time: 8 min.

Creating a B2B portal or marketplace is an important step in business digital transformation.

Over the past two years, the kt.team team has delivered six major B2B portal development projects for logistics, manufacturing, and retail companies.

Clients often feel that creating a B2B portal is such a complex process that it requires special preparation.

But you also do not want to slow development down: why miss out on potential value?

IT department leaders and business owners are concerned with the following questions:

Competitors built a B2B portal, so do we need one too?

Is it a universal way to increase sales, attract new customers, and grow profits?

How Do You Write a Technical Specification for a B2B Portal?

Can portal development begin if the company is not yet automated?

Or should you first get organized and streamline document workflow?

Should Business Processes Be Optimized in Advance

So how do you effectively prepare for B2B portal development? In this article, we will look at all of these issues, and I will propose the action plan that, based on our experience, saves IT management from a huge number of problems. A B2B portal and a B2B marketplace are online platforms for wholesale buyers.

Placing a wholesale order on such a platform is almost as easy as buying groceries from a retail online store. Of course, there are differences, because in B2B there are many more pricing factors, and document flow and logistics are more complex, and in

Example

, SKU search is used more often than search by color or size. For more details on how such platforms work, what makes them unique, and how they simplify sales, read our recent article, "How a B2B Portal Relieves Marketing and Management Headaches: 9

Example

s".

Why Do You Need a B2B Portal? Why Goal Setting Matters

  1. The goal of building a portal or marketplace must be as deliberate as possible. The option "competitors built a B2B portal, so we need one too, and urgently"

  2. - bad. Do not fall for cargo cult thinking (in the best-known cargo cults, exact replicas of runways, airports, and radio towers are built from coconut palms and straw.

  3. Followers of the cult build them, believing that these structures will attract cargo planes (which are considered messengers of the spirits), filled with cargo, in the hope that once you prepare a B2B platform, millions will rain down from the sky.

  4. Your level of technical and financial readiness may differ greatly from that of a competitor.

  5. Development always requires major resource investment: financial, labor, and organizational.

  6. First, use unit economics to make sure development costs will pay off, and then create a goals and impact map - an Impact Map.

Goal-Setting Example: A Regional Manager and Digitalization

Suppose one of the company's executives in a remote region learned that the market leader in his industry had built a B2B portal. That inspired him, he became enthusiastic, and he wanted to do the same: digitize all interactions with his wholesale customers. But right now, the business processes in his company are completely not automated. Orders are placed by phone, shipments are processed manually, and approval of a paper printout of an order takes two weeks.

Most market players in his region do it that way, and his customers consider it normal and even convenient. Why does he need digitalization, and more importantly, how should he approach working with a contractor so it does not become painfully difficult later? Should he invest large sums in an IT product for the sake of the product itself? But then how should development success be measured - would the evaluation scale really have only two values ("Done" or "Not done")?

When a client wants to build a B2B portal but does not have a clearly defined purpose for it, it is worth working on goal setting using the Impact Mapping method. I wrote about this in more detail in the article "Impact Mapping, Unit Economics, and PDCA: Effective e-Commerce Development Management." Impact Mapping helps define project goals clearly in line with the goals of the entire business. To do this, you need to perform a deep analysis and answer four key questions.

Why? Why is this product needed? What business problem should it solve?

Who? Who can influence achieving this goal?

How? What can he do to bring the project closer to the business goal?

What? What specific steps should the person responsible take within their duties? Here, you need to describe detailed functionality for each task. For the business owner, this

Example

I would suggest holding two or three consultations on goal setting.

Once he has digitized his goals and we can see clear project metrics, we will discuss cooperation not in abstract terms ("I want something like the competitor's"

), and specifically ("I want a result expressed in quantitative metrics X and qualitative metrics Y"). We will discuss B2B portal target metrics in more detail at the end of the article.

How Do You Write a Technical Specification for a B2B Portal or B2B Marketplace?

When working in the Agile paradigm, a detailed specification that clients used to spend six months preparing is pointless.

Why? Read the detailed explanation in my colleague Jaclyn Baffo's article, "MVP, or How Not to Get Stuck in Endless Development."

We follow agile development management approaches and believe that before building complex software, you should first create an MVP, test it with real users, and only then refine it and add improvements. A specification is a waste of time and money, and the information in it becomes outdated while it is still being written. While the client is writing the specification, some people may leave, much may change in the business, and your own vision of the ideal may become completely different.

As a result, a few months later you receive a request to test all the functionality, but there is no guarantee you even remember how it is supposed to work.

Assess where AI can deliver impact in your process

Example: MVP and Collecting User Feedback

An IT company developed an MVP (minimum viable version) of a B2B portal for a wholesale supplier and began collecting feedback from retailers who were loyal enough to that supplier and agreed to take part in testing. It turned out that the retailers - the platform's customers - select products and group them into batches not quite the way the client had imagined. In

Example

, when placing an order, it is important for them to control truck load capacity.

But how exactly should this be implemented from the platform's functionality perspective?

Does the customer always have data on the exact truck type, maximum load, and so on?

All these details are not obvious at the start of a project - they will be identified, clarified, and improved only after the MVP is released, through real interaction between the IT product and the end user. As a result, the developers made the necessary changes and improvements revealed by real feedback, not by someone's outdated hypotheses fixed in the specification. After launch, the portal received a high NPS from users (Net Promoter Score).

In this case, both the team and the client clearly saw what losses an MVP helps avoid and how important it is to get fast feedback on the product.

Should you review all your business processes and optimize them before contacting developers?

There is no need to do this in advance. During B2B portal development, all business processes will still be reviewed, revised, and optimized. We work in complex environments where we need to understand the current state and the desired end point, and in each sprint we should focus not on features but on metric changes, then define tasks after setting the goal and verify metric changes. A B2B portal is a result of a large, complex transformation. What is B2B portal development?

It is an attempt to optimize certain processes: learn more about your customer, reduce operational processing costs, and improve service quality through better work organization.

The result can be expressed in the following quantitative metrics:

- higher order frequency (think about yourself - you probably also buy more often from the online store and order taxis more often in the app where forms are autofilled and your card is already linked.

B2B purchases are also made by people, not robots, and under otherwise equal conditions they prefer a fast and easy order); - optimizing order structure (the seller can stimulate demand for products in a way that benefits them: people often order what the system recommends rather than what they are used to ordering); - increasing profit through additional services (tender support, financial services, legal services, etc.).

No portal is limited to simply the technical implementation of an "EDI/EDI site." During development, there will definitely be many processes that need to be improved along the way.

But speed does not increase by adding more tasks.

The key is choosing the right priorities.

The PDCA cycle helps determine priorities, and its logic is simple: choose the metrics you want to change, make sure they are balanced (quantity/quality), decompose them into narrower metrics if necessary that can be changed within a sprint, choose tasks to change them that will fit into the sprint, check the metrics, and learn from the result (gain experience - whether the metrics changed or not).

Example: Customer Registration and Metric Improvement

  1. You implemented a B2B portal, but during use not a single metric improved, and every manager still manually processes data from electronic forms.

  2. This happens because when a visitor fills out the registration form on a B2B portal, their email goes to an employee who has to log in to the site and manually add that user to the B2B portal. As a result, the quality metric (manager workload coefficient) stayed the same or even got worse.

  3. Once this is discovered, the next sprint should make it possible for customers to register on their own. That will improve this metric. Let's sum up.

  4. Revising business processes before automation is difficult (and changes will still be needed again during the process); it is inefficient from a lean manufacturing perspective, because these actions do not produce results now and are waste.

  5. The key is to define metrics and adjust business processes along the way so changes happen together with development according to the Deming cycle.

  6. Implementing a B2B portal is usually intended to improve management culture and optimize business processes.

  7. This is another argument for reviewing business processes together with all goals and metrics.

Conclusion

We have reviewed the main mistakes that keep a client from properly preparing for B2B portal development. A step-by-step preparation plan will help you avoid these mistakes - we will share it in the second part of the article.

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