Midsized to large organizations often employ a large number of tools and have many interconnected relationships with other organizations and external users. With a complex network of technologies, users, and partners, it can be challenging to maintain control over every aspect of the organization and maintain efficiency and low operational costs.
While Business-to-Business Identity and Access Management (B2B IAM) shares similarities with other types of IAM, like employee-focused systems or customer identity tools, it’s designed specifically for managing external users such as partners, suppliers, and vendors. Unlike tools meant for internal teams or consumers, B2B IAM focuses on simplifying access for these external groups while maintaining security and efficiency. For example, it enables businesses to delegate access management to their partners, reducing the burden on IT teams and ensuring external users get only the necessary access.
This focus on collaboration and secure external relationships makes B2B IAM unique. It is a simplified yet powerful solution that can unclog much of the complexity around B2B authentication relationships, which leads to redundancy, lost costs, and lag.
The Need for B2B IAM
We live in an age where digital connectedness is the lifeblood of business. As organizations increase their reliance on partnerships with suppliers, vendors, distributors, and other external entities, the number of interactions with third-party users and systems grows exponentially. According to the Thales B2B IAM survey, nearly half of the users accessing corporate systems and data account for B2B relationships. Managing these connections securely and efficiently has become a business imperative, especially as external collaboration expands across supply chains, manufacturing ecosystems, and service networks.
Most organizations already have their own in-house IAM systems, but you can imagine the complexity when multiple disparate systems meet. Instead of hitting the ground running, these teams must spend time synchronizing their authentication, onboarding, offboarding, permissions, access, and sign-on. For teams that want to drive efficiency and spend money on driving initiatives (not IAM tasks they thought were already in hand), this can be a significant impediment, especially as this step cannot be avoided.
When companies have their own in-house B2B IAM solution, these problems are streamlined by an overarching solution that assumes collaboration and automates identity management tasks, reducing what could be chaotic complexity into a platform designed to “handle it all.” This includes scaling in the cloud as your joint businesses (and IAM needs) grow, reducing the need for on-hand IT staff to do perfunctory things like resetting passwords, streamlining faster onboarding of new hires for quicker time-to-value, and essentially anticipating the IAM needs of a well-connected, multi-faceted organization and meeting them.
To that end, B2B Identity and Access Management (IAM) solutions offer significant operational and financial benefits for organizations managing external user access. Here’s how.
Streamlined Onboarding and Offboarding
B2B IAM solutions greatly simplify the process of onboarding and offboarding external users, leading to several benefits:
Faster Onboarding | Automated user provisioning reduces manual work and accelerates the onboarding process. This means that new partners and vendors can gain access quickly and securely, enhancing productivity from the start. According to the same survey of vertical respondents mentioned above, the most commonly cited difficulties in onboarding external identities are security consistency across the workforce, developer enablement of standard authentication and authorization, regulations, and user friction. Managing external identities can be complex, but B2B IAM can simplify this and other onboarding processes.
Efficient Offboarding | Automated de-provisioning mechanisms promptly revoke access when partnerships end, or employees leave. This reduces security risks associated with lingering access privileges. As stated in The Hacker News, “Disgruntled ex-employees or those who inadvertently retain access could expose, alter, or delete critical business data, customer information, financial records, or trade secrets.”
Time and Cost Savings | Automation of onboarding and offboarding processes reduces administrative overhead and IT support costs. Self-service capabilities allow users to manage their own access requests and profile updates, further reducing IT workload.
Enhanced Access Management
B2B IAM solutions provide powerful tools for managing access across complex partner ecosystems:
Centralized Control | Administrators can define, monitor, and adjust user permissions from a unified dashboard. This centralized approach ensures consistent policy application and reduces errors.
Delegated Administration | Partners can manage their own users within defined constraints, reducing the administrative burden on the host organization. This empowers partners while maintaining overall security control.
Relationships-based Access | Allows for granular control and customized experiences for each business partner. Enables efficient management of complex organizational structures.
Operational Efficiencies
B2B IAM solutions drive operational efficiencies in several ways:
Reduced Administrative Costs | Automation of routine tasks like password resets and access requests saves time and resources. Self-service capabilities further reduce the need for IT intervention.
Improved Productivity | Federation andSingle Sign-On (SSO) capabilities allow users to access multiple applications with one set of credentials, reducing time spent on logins. Streamlined access management ensures users have the right permissions to perform their tasks efficiently.
Scalability | Cloud-based B2B IAM solutions can easily scale to accommodate growing numbers of partners and users, eliminating the need for costly infrastructure upgrades.
Enhanced Security and Compliance
B2B IAM solutions also offer significant benefits in terms of security and compliance:
Improved Security Posture | Centralized control and automated processes reduce the risk of unauthorized access. Features like Multi-Factor Authentication (MFA), identity proofing, approval workflows, and risk-based authentication enhance overall security.
Simplified Compliance | Built-in compliance and reporting capabilities help organizations meet regulatory requirements more easily. Automated access reviews and certifications ensure ongoing compliance.
Financial Benefits
The operational efficiencies and enhanced security provided by B2B IAM solutions translate into significant financial benefits:
Cost Reduction | Reduced administrative overhead and IT support costs lead to direct savings. Improved security reduces the risk of costly data breaches and associated penalties.
Revenue Growth | Faster onboarding of partners and customers accelerates time-to-value. Enhanced user experience can lead to improved customer satisfaction and retention, driving revenue growth.
Simplify Complex Processes with B2B IAM
The benefits provided by B2B IAM can make a difference in a midsized to large organization. Streamlining processes like onboarding, offboarding, and access management for external users makes interactions between entities faster and easier, saving organizations and users resources. The time, money, and other resources previously taken up by these processes can instead be routed to increase productivity and efficiency.
Many organizations, from manufacturers to financial institutions, can benefit from implementing B2B IAM tools. The many connections that organizations have with external entities can make business operations complex and challenging, as different businesses use different tools and practices. B2B IAM is a way to simplify many of the processes necessary for organizations to conduct operations with external users.
By consolidating a lot of the management tools already in use by businesses on both sides of identity transactions, B2B IAM helps companies cut costs, swiftly secure validation, and get on to the work that matters most.
Jose Caso, B2B IAM at Thales, is a seasoned product professional with over 15 years of experience in software development, product management, and product marketing. He specializes in aligning technical and business goals to deliver solutions that meet evolving client needs. With a background spanning physical security, cybersecurity, and enterprise solutions, Jose focuses on driving innovation that keeps businesses competitive in a dynamic market.
The opinions expressed in this post belongs to the individual contributors and do not necessarily reflect the views of Information Security Buzz.
