The firm will use data-driven decision making in implementing its new operations strategy. The company aims to start Business to Business operation. This strategy aims at improving the sales of the company in the future as well as increasing the profitability of the firm. The strategy is introduced to meet the increasing demand for the company’s products by many people as well as firms.
Instead of relying on the performance of the firm to increase productivity, I will use the data-driven decision making in deciding how much commodities should be produced for sale to other firms and consumers. Due to advancements in technology, data can be gathered regarding the needs of the customers, and appropriate action is taken to meet their demands.
The new practice will interfere with the normal way of doing business because the data gathered and decisions made on B2B business operation will impact on other departments. The two practices might lead to internal competition because, on what hand, the firm has to meet the needs of consumers, and on the other hand, the firm must meet the needs of other companies that rely on their supply.
The conflict that challenges the implementation of Business to Business transformation strategy is high competition from other industries that manufacture the same products as those sold by the firm. Many companies produce cameras and other digital electronic materials. Transforming from business to consumer to Business to Business production of services will affect the firm when it comes to acquiring the market for its products. The problem with business to business transformation is that it requires huge capital to start producing goods that can be used by other firms in the industry. The production of cameras and other resources used by other companies requires a steady supply of goods and services to meet the demands of the market. With an increased number of companies dealing in the same line of products, there is stiff competition for the market at the beginning of the business. Shifting to the mass production of goods to meet the demands of the market can be another problem that will affect the company. The company at the beginning will be faced with the challenge of employee shortage due to financial constraints. This arises because the firm needs more cash to increase production and also hire new employees to help improve the production of components that other firms require or demand. To beat the competition from other firms may require the company to come up with additional strategies that can help it gain market control. The strategy may include extensive advertisements and rebranding the products. If the firm adopts these strategies, then it will need a lot of financial support to meet its targets.
B2B transformation benefits the firm in many areas, including high profits generated from the sale of the machines that other firms do not offer. For instance, the company produced one of the best ink-jet printers, which no other firm could match. This made a lot of revenues for the company and also expanded the scope of operation of the company. B2B production will enable the firm to increase the production of goods since any firms will require the products in large quantities compared to business to consumer production. In the B2B operations of the company, it is easy to get loyal customers to the firm by forming a partnership with other industries that sell the components required in the production of certain products in the firm. B2B business strategy gives a firm a chance to take control of the market by not only focusing on consumers but also on other firms that require their products. It is easy to interact with another firm compared to getting consumers of the products from different parts of the world. By using b2b business strategy, the firm increases the scope of its operations to other areas in the world. The companies that purchase the products sold by Kodak come from different parts of the world hence making it simple and easy for the company to acquire markets across the globe. With the introduction of the b2b business model, the company will no longer require mediators in delivery of the goods to their consumer hence reducing the cost. The firm will have to sell the products to other firms, which will then offer goods to the final consumers lowering the cost of advertising the products to attract consumers because other firms that offer the products will do the advertising.