Collaboration is key – the power of B2B ecosystems

At a time when new technologies and business models are rapidly entering the market, complexity increases. Interconnected solutions will allow us to realize our full potential in creating customer value. By supplementing our portfolio through strategic partnerships, we become more adaptable to customer needs. This is why, at Körber, we invest in ecosystems.

Effective, fast, agile, digital, connected, sustainable, resilient – the list of demands for the world's leading technology companies is long. However, entrepreneurs would not be who they are if they did not also see or recognize an opportunity in a challenge. This opportunity is named ecosystem.

As a leading industrial solutions provider, Körber embraces the ecosystem challenge and its benefits. For an economy in transition, we have adopted a whole new way of thinking. And we are by no means alone in this: e.g., more than half of the top 100 global companies in the S&P 500 have already built or bought into at least one ecosystem, and 90 percent of multinationals said they plan to expand their activities in business ecosystem models¹. It is also expected that by 2035, around one-third of the global GDP — which would be more than half of the distribution part of the GDP — will actually be orchestrated by cross-industrial ecosystems².

Providing holistic E2E solutions in B2B

Business ecosystems are sets of independent players that cooperate on an equal footing to create more value than each company could provide on its own. By combining products, solutions and services from different players, ecosystems enable the creation of entirely new offerings.

With companies joining forces, customers have a more significant benefit than if they were to receive their offers individually. The precise focus on the end-to-end fulfillment of one or more customer needs, that's what's essential. In economics, where calculations are always done accurately, this is oddly called the "1+1=3" principle.

Its benefits have long been known in the B2C sector. In B2B, however, thriving ecosystems are still rare. But not for long. According to a recent study, two-thirds of global economic activity will take place within one-third of Ecosystem Domains by 2030, with B2B Services being the fastest-growing global Ecosystem Domain between now and 2030³.

lThe more diverse the challenge, the greater the value of the ecosystem. That is when a multi-company approach is the most beneficial.r
Rami Jokela, Chief Sales Officer (CSO) of the Körber Group

Rami Jokela, Chief Sales Officer of the Körber Group

Körber's path to ecosystem success

At Körber, we already invest in ecosystems and team up with external partners. Looking beyond scattered isolated products and process steps, we combine multiple components to create holistic offerings. This is what we call "the Körber approach to ecosystems". By further developing our own solutions and building leading ecosystems with industry partners, we are "connecting the dots" and are able to provide integrated solutions along the whole customer value chain.

Rami Jokela, Chief Sales Officer of the Körber Group, explains how and why we do this, what needs to be considered, and the resulting benefits for Körber’s customers.

Absolutely, and we're getting there faster than one might think. Precisely because in our private lives, i.e., in the B2C sector, we have long been operating in ecosystems. We shop in online market places, rent cars from mobility providers, work in a networked environment of computers and mobile devices, and navigate our lives with all kinds of apps. By the way, this is true for multiple generations, not just Gen Z. They, however, expect the same in their work and business environments. And because they are the customers and entrepreneurs of tomorrow, B2B will change dramatically over the next decade.

One of the biggest challenges in many industry segments at the moment is what is known as "connecting the dots" between the physical and digital layers. We see that the highest optimization potential for our customers no longer lies in individual products but in a functioning ecosystem that addresses market and consumer needs end-to-end – horizontally and vertically. It will be the fastest, cheapest, most capable, and most flexible solution as ecosystems increase multi-company capabilities, speed, and agility and lower the investment cost. At Körber, we enable customers to get there by building leading ecosystems with partners in the industry.

It all starts with customer-centricity. In our line of business, the main reason for setting up a valuable ecosystem is to solve manufacturing and supply chain challenges. We operate in the age of Industry 4.0, where almost everything is connected, integrated, automated, and steered by AI. Whatever the customer's challenge, we or our partners within our ecosystem will address it, depending on the issue and the company best suited to tackle it. The more diverse the challenge, the greater the value of the ecosystem. That is when a multi-company approach is the most beneficial.

Our holistic offerings support our customers on their digital transformation journey, tackling supply chain disruption, manufacturing issues, time-to-market challenges, or cost pressures and ranging from resource and supplier issues to ensuring product quality and data integrity as well as affordability and access to end products. For us, however, building valuable ecosystems means collaborating without compromising – regardless of whether it is a Körber solution or one offered by a partner.

Körber is indeed in a unique position. We can provide not only single products and solutions but holistic offerings, combining physical and digital layer over the end-to-end value chain. That makes our customers more efficient and productive and increases their yields. In a nutshell, we have all that's needed to enable a successful outcome.

There are indeed, which means in addition to our own experts within our Business Areas. One of the most pressing needs in recent years was the enablement of our customers towards full automation, touchless hubs and so-called lights out factory solutions. That’s why we work with strong partners, particularly in our Business Area Supply Chain. Here, we've partnered with our robotics suite to create best-in-class 3D robotic storage and retrieval solutions. Our AMR network allows us to address supply chain challenges holistically. Our Business Area Pharma has several partnership programs, each contributing to faster and more accurate use of the PAS-X suites. I'd also like to mention our digital venture vaibe, which provides state-of-the-art gamification solutions in various industries. Our partnerships aim to take industrial production to a new level using artificial intelligence and machine learning.

B2B ecosystems: no pie in the sky

At Körber, we know that operating in a B2B ecosystem opens up new perspectives for us and our customers. They are fundamental to staying ahead of the competition, adapting to changing customer needs, and tapping into new markets and opportunities. Collectively, we can meet the challenges of digitalization faster and make the associated transformation processes more agile. Customer needs can be addressed in a more targeted and holistic way, resulting in new customer wins and innovative products. All in all, this leads to new opportunities for value creation.

Whatever the future may hold, we keep turning entrepreneurial thinking into customer success and going strong in shaping technological change for better lives and a sound economy for present and future generations.

¹ https://skaleet.com/en/blog/
² https://www.mckinsey.com/
³ https://www.pwc.de/en/corporate-innovation/

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