Explaining Exchanges: business to buy services
8/6/2012 | | Dorothy
As blur Group continues its global expansion into new exchanges, we thought it might be timely to explain how this model works for those used to buying and selling services in the ‘traditional’ way.
The early days of the Creative Services Exchange showed us that, as with any disruptive new product, adoption approaches vary. People buy things in the same way because it’s always worked: they don’t look to change the status quo and in so doing, they don’t realize the potential returns and benefits. It’s the classic ‘if it ain’t broke, don’t fix it’ rather than the more innovative ‘what would happen if…’ Those early adopters who decided to change the way they sourced their creative projects and start using blur Group’s Exchange, quickly saw that they had access to a different set of resources, achieved efficiency benefits and realized better value – leading to significantly improved ROI. We’re wise enough to realize that not everyone embraces disruption, but here’s why you should. In this case he who dares, really does win.
Just as marketing has its four Ps, here’s the four Es of Exchange adoption. showing why you should make the change to how you buy services. Efficiency: Exchanges are designed to make buying and selling more efficient for both supply and demand sides. As a buyer using blur Group’s b2b Exchanges these efficiencies are seen as Streamlined and managed process. From the moment the requirements are briefed through to completion of the project, the Exchange drives the process through. All automated on one cloudbased platform: that’s briefing, pitching, payment and project collaboration, delivery and management. This efficiency benefits all parts of the business: business owners, functional heads and procurement professionals. Removal of overheads. Using the Exchange takes away overheads and hassle. There is a more direct interaction and access: the Exchange model doesn’t support the padding of traditional clientprovider relationships. It also means there is a platform to deal with the administration and general issues around your buying process; replacing the need to handle multiple responses: the Exchange does this. In time we see Exchange procurement replacing the traditional RFP. Single point of purchase and delivery: blur Group’s online blur Trading platform means that everything is done in one place. Which in turn means that there is no need to manage multiple suppliers, or multiple systems. As a seller, the benefits are almost identical: the opposite side of the exchange.
It’s easier to discover new opportunities; working collaboratively online means more projects can be undertaken and much of the admin of the client relationship is handled through the Exchange. Economics: An exchange encourages an auction system for setting a final price. This is why blur Group has a budget range when submitting requirements: as a buyer you’re setting your lowest and highest bid options. The seller can choose where in that range to pitch – and as with any auction, the agreed price is the deal price. A business gets better value than through the traditional ways of sourcing. From the agreed price. From the efficiencies meaning internal costs are reduced. From the project-based sourcing rather than retainer approach. The economic effect is also part of the philosophy behind blur Group: this approach means that everyone who has the talent to deliver, can deliver. There are no economic boundaries so success flows freely between regions, between different business sizes. Experts: blur Group’s Exchanges use Expertsourcing. While crowdsourcing underpins this model, our difference is our unique use of Expert crowds. Experience counts. Expertise counts. No one is in our community without having the proof that they can pitch and deliver the project to the highest quality, the most innovative approach and addressing the customer’s specific needs, adding value at all points. Expertsourcing is managed; crowds are closed and encourages and ensures results. Discovering experts through the Exchange shortlist is very different from finding a list of suppliers. It’s another point where business benefits. Expert providers know that they are only competing like-for-like; they will not lose to a cheap, poorly-executed idea. They join the crowds for the benefits of community and opportunity.
Execution: Buying through blur Group’s Global Services Exchange is expedient and focused on execution. It’s not focused on fluff. It’s not about the surrounding fripperies. It’s about getting your project delivered. Just to emphasise the project approach: large scale retainers, whether it’s for your accounting provider or your PR agency do not define what needs doing. Your business needs projects: it’s just not used to sourcing everything on a project-by-project basis. With the Exchange it can be one project at a time, multiple projects delivered by one expert or by different experts. Each time it’s about getting the best execution and price for the project in hand. There are no compromises. Imagine being a business owner who can now brief for everything, in the same way, in the same place and with the same process running throughout right through to project execution. Now that’s efficiency, economics, experts and execution.
As blur Group continues its global expansion into new exchanges, they thought it might be timely to explain how this model works for those used to buying and selling services in the ‘traditional’ way.
Just as marketing has its four Ps, here’s the four Es of Exchange adoption, showing why you should make the change to how you buy services:
-Efficiency: Exchanges are designed to make buying and selling more efficient for both supply and demand sides.
-Economics: An exchange encourages an auction system for setting a final price.
-Experts: blur Group’s Exchanges use Expertsourcing. While crowdsourcing underpins this model, our difference is our unique use of Expert crowds.
-Execution: Buying through blur Group’s Global Services Exchange is expedient and focused on execution.