Enterprise Business Travel: Contradictory Evidence; Communications Clearly Up

Tradeshift, which provides e-invoicing and accounts payable services has posted some contradictory evidence about the state of global enterprise business travel. 

On one hand, enterprise travel globally--based on transaction volume--has returned to nearly 70 percent of pre-pandemic levels, according to the data published by Tradeshift. That likely is more robust than most of us would have predicted. 

Note that Tradeshift tracks the volume of transactions, not the value of the transactions. 

On the other hand, corporate hospitality spending has not budged from its second quarter 2020 levels, when travel restrictions were widely imposed as a result of Covid, reducing such spending 82 percent. In the second quarter of 2021 the figures still had not shown any improvement.

That suggests “client entertaining and networking events will remain virtual, at least for the time being,” the firm says. 

Communications transaction volumes, on the other hand, seems about 80 percent higher than before the pandemic, Tradeshift notes. Transaction volumes across the sector are 89 percent higher than prior to the pandemic. 

source: Tradeshift 

At least anecdotally, that seems borne out by U.S. connectivity provider revenues. In second quarter 2021 financial reports Comcast reported record internet access net additions while all three big mobile service providers reported growth as well. 

Verizon booked record revenue. AT&T second quarter revenue climbed 7.6 percent.  T-Mobile posted record revenues as well.

B2B Sales Might Never Be the Same

We do not yet know whether Covid business-to-business sales processes have changed permanently or not. But a McKinsey survey suggests at least 30 percent of sales journey operations are conducted entirely on a “self serve” basis, not face to face. About 32 percent of B2B research, evaluation and ordering operations are conducted digitally.

source: McKinsey 

About 34 percent to 36 percent of sales processes are conducted digitally with a sales person. Only about 34 percent to 36 percent of such processes are conducted face to face. 

Altogether, roughly two thirds of B2B transactions are conducted digitally, not face to face, by phone or fax.

Compared go pre-Covid patterns, fewer sales are concluded in person; more are conducted using video conferencing, online, by email or e-commerce methods. 

source: McKinsey 

The survey suggests growing comfort with remote interactions. In April 2020 only 27 percent of respondents thought the remote sales processes were more effective than face-to-face methods. By February 2021 that percentage had grown to 58 percent. 

Fully 87 percent of respondents believed they would continue with remote interactions for at least a year after the pandemic ends. 

source: McKinsey

Digital Transformation Might be Viewed Differently, After Covid

The way entities go about digital transformation might be different now, compared to pre-Covid expectations, according to George Westerman, principal research scientist for workforce learning in MIT’s Abdul Latif Jameel World Education Lab. 

The prior assumption was that customers value the human touch. In some cases, Covid experience suggests a well-architected digital experience can offer an equivalent or even a more personalized transaction than an in-person engagement, at least in some cases, he argues. 

Many entities might have assumed it was prudent to be a “fast follower.” But there was nobody to follow during the instant economic shutdowns Covid policy required. Business closures required immediate action. 

Digital transformation is not an especially new concept, but it also is a term used in several distinct ways. In some ways DX is a deepening of the “data-driven decisions” mantra. 

It can refer to customer experience, operations or business models. In rare cases DX is a combination of all three, though generally beginning in silos. Connecting dynamic operations therefore tends to be a longer-term goal, no matter how the discrete initiatives unfold. 

source: MIT Sloan School 

Customer experience, customer intelligence, sales processes and growth, customer touch points, operations and business models (customers, products, problems solved, revenue generation models, fulfillment) all are parts of the broader DX agenda. 

The key point is that DX is about transformation, not simply “going digital.” That noted, the foundation for digital transformation is a clean, well-structured digital platform.

None of the other digital elements can achieve their full promise without it, MIT Sloan researchers argue. 

Cloud-Related Spending Will Drive SMB Investments in 2021

Cloud-related platform spending will a major driver for small and medium businesses globally in 2021, according to Analysys Mason. Since most major information technology apps and services are supplied using remote computing (cloud) mechanisms, that will come as no surprise. 

source: Analysys Mason 

Marc Halbfinger, PCCW Global CEO Featured on Podcast

Marc Halbfinger, PCCW CEO will be featured on a podcast sponsored by Ridge Innovative. Mark your calendars for July 28, 2021listen in at innovationwithapurpose.

Here is the podcast.

Marc will be talking about federating communications services and suppliers. If I had to guess, I’d bet he’ll talk about how to create ecosystems of buyers and sellers that can function largely autonomously. 

Here’s another talk Marc did that might present the framework.

B2B Sales Might Never be the Same

Moderator

Gary Kim, Consultant, IP Carrier, USA

Panelists

Matt Bramson, Founder & Managing Partner, Cloud Strategy Solutions, USA
Marc Halbfinger, Chief Executive Officer, PCCW Global, Hong Kong SAR China
Nancy Ridge, Founder & President, Ridge Innovative, USA
Elmar Rode, Director Communications Industry Strategy Group, Oracle, Germany

86% of U.S. has Home Density of 15 Homes or Fewer Per Plant Mile

Rural fixed network plant is expensive, on a per-location basis. Most of the land surface of the United States consists of areas where a mile of fixed network plan passes no more than 15 homes, for example. 

In the United States, areas with linear plant density of 15 homes or fewer represent nearly 86 percent of the area of the lower 48 states, yet contain just  12 percent of the locations.

source: CQA 

That is one reason why U.S. fixed networks often take so long to build. Earning a profit from investments in new plant is difficult, most places.