B2B ecommerce: The Power of e-Platforms

As the world adopts the digital economy, businesses gradually moved from simple software products to platforms, which are technology and internet-enabled business models that create value across a dynamic network of stakeholders. These platforms are also demand-driven, flexible, agile and scalable. Till now seen largely in B2C business models, it is the way forward and future of businesses in the B2B space as well. The next decade will see creation of interconnected digital ecosystems which will be hosted on large B2B platforms, powered by futuristic technology such as AI & Machine Learning, Cloud, Robotic Process Automation, Blockchain and API economy.

In very simple terms, a platform is an e-marketplace and just like a physical marketplace, the trigger is customer-driven. The key distinction of the platform model as opposed to a physical marketplace is the growing connectivity and the growing power of Analytics. Platforms thus thrive on digital connections, and more than ever before – Cloud-based processing, storage and tools.

The B2C players globally have created large-scale disruptions in building and scaling up these platforms based on customer feedback, convenience and need, and aimed at providing a holistic experience on a single platform. Therefore restaurant reviews, booking a table and even ordering in for food from the restaurant happens from a single platform. There is hardly anything else that you would want to do at a restaurant! The model is vibrant, dynamic, transaction-based and very easily scalable lending itself to non-linear growth. Small conveniences make big differences on a platform and new value is created constantly, regularly also creating new levels of efficiencies.

This platform model is the future of B2B businesses. There are several organisations that exist in this space, and while the disruptions that they have created are not widely known as the ones in the B2C space for obvious reasons, this model is here to stay and prosper.

For me, it is exciting to offer mjunction’s e-procurement application on the Cloud – instead of offering it as a licensed software. Multiple organisations can use this platform to connect more efficiently with their suppliers. Designed to cater to diverse needs, this platform will support very simple to very complex procurement requirements. As I have mentioned earlier about the role of Analytics in B2B platforms, here too, Analytics plays a key role in facilitating strategic decision making, and the platform has powerful Analytical tools to provide insights to organisations on their spend, to help them procure better.

The Vision

For B2B platforms to really flourish, it is important that organisations adapt to the biggest change from traditional, linear business models – that of looking beyond their own enterprises and evident business interests. A platform would typically encompass the needs of the entire ecosystem, much beyond a single organisation or a single service. A very apt example would be the experience of a buyer who comes to buy steel at mjunction. For him

to get a holistic platform experience, apart from purchase of steel, he should get finance, inspection, logistics and price estimation support. For this, the platform owner, in this case mjunction, has to tie up with banks, inspection agencies, logistics service providers and price forecasters. I believe that is the best way to help the consumers, and that is where the future growth potential lies. This model is behind the success of today’s biggest, fastest growing and most powerful disruptive companies.

We have to work together to co-create a business ecosystem with e-platforms as a potent tool for exponential growth, powered by futuristic technology.

Vinaya Varma
CEO, mjunction services limited