Technology, market trends and customer preferences have changed the dynamics of the distribution industry. While the industry has weathered many challenges over the years, most companies are realizing the business models of the past aren’t working. So, they’re pursuing solutions that are more outcome-driven to meet evolving expectations.
In preparing for the latest National Association of Electrical Distributors (NAED) research effort, Building a Connected Business, two strategic imperatives served as initial guideposts. We wanted to focus on how to optimize current practices and how to transform the future.
There was a great deal of debate around what the future will look like for electrical distributors. How will, or should, it function? NAED members had to ask themselves if going "all in" was really a necessity in order to ensure the industry survived. It was then we knew that we had to go "all in" and fully explore this topic.
Thanks to the support of the NAED Foundation Board and Channel Advantage Partnership, the project’s scope was expanded to provide market context, recommendations and ways to address organizational gaps. NAED members needed to know "how" they could incorporate digital solutions and technologies into their businesses as well as "why."
We enlisted the international research firm Frost & Sullivan to work with NAED members to determine what actionable steps and strategies would be the most germane and actionable. The result became what is now a comprehensive roadmap to implement change and measure results over the next three to six years. An important aspect of the report is that it focuses on the entire channel—manufacturer, distributor and customer.
The report's centerpiece is an impressive framework of digital capabilities. Categorized into five groups—Talent, Revenue Engine, Operations, IT and Business Steering—each section provides suggested technologies, software or processes to not only optimize those areas of business, but ultimately to achieve a fully integrated business on all levels.
As different and emerging skillsets are needed to attain these goals, the report also includes recommended roles and talent considerations to help facilitate your efforts.
Often, the toughest part is knowing where to start. So, Building a Connected Business offers a phased approach to determine needs across the company, close necessary organizational gaps and layer in digital capabilities.
Since changes of this magnitude don't happen overnight, there's a timeline to help you sequence your priorities and implementation over several years. And, because organizations, and their employees, will experience a number of adjustments in the workplace, the plan also addresses change management and recommends steps to identify the change champions needed to serve to ensure smooth transitions.
While some members are just starting to digest the information within the plan, others are establishing committees and taking action. The consensus is that the action plan is comprehensive and thought-provoking. There's a great deal of recommendations and market intelligence packed into this plan. However, Frost & Sullivan's approach to present it as a roadmap and timeline helps to pull all the pieces of the digital puzzle together.
The beauty of the plan is that it has been structured to work for any size organization, no matter its levels of digital maturity. Building a Connected Business was designed to help your team determine how you may want to reshape your business. For these changes inside of your company will positively impact what happens outside of your company for a greater customer experience. So, everyone wins.
The nearly 400-page report is available now. Send an email to memberengagement@naed.org to purchase a copy of the report. IMARK members can purchase a digital copy for $549 or pay $649 for a printed copy.