By Jose Caso

In the modern business environment, organizations across a wide range of industries employ large, interconnected networks of relationships between partners that form critical links in their value chains. These relationships—with suppliers, distributors, partners, and contractors—are essential for delivering products and services efficiently. However, as these networks grow in size and complexity, managing access to systems and data becomes increasingly challenging, introducing risks that can disrupt operations, hinder collaboration, and compromise security.

While Identity and Access Management (IAM) is a proven security tool, insufficient IAM processes can impact entire businesses and hinder productivity, especially for larger organizations. Traditional IAM measures and tools are effective in certain areas but are not designed to handle these complex relationships with higher levels of interaction with external users.

What is B2B IAM?

Business-to-Business Identity and Access Management (B2B IAM) objectives address the complex and multifaceted nature of today’s B2B environments and interactions. Many organizations, especially midsized to large businesses, deal with a vast network of interconnected users, tools, and partners. To maintain the security and efficacy of these relationships, it is essential to use purpose-built capabilities to handle them.

B2B IAM shares features and goals in common with workforce IAM (WIAM), customer IAM (CIAM), and Identity Governance & Administration (IGA), and in some ways, spans across all three. However, certain functions separate B2B IAM from other IAM measures.

• Delegated User Management: Empowers external partners to manage their own users, reducing administrative overhead for your organization.
• Single Sign-On: Enables users to access multiple applications and platforms with one login, simplifying authentication processes.
• Self-Service Capabilities: Empowers users to manage their own access requests, password resets, and profile updates, reducing their reliance on support from IT teams.
• Robust Reporting: Produces thorough reporting and documentation to maintain compliance with applicable security laws and regulations, such as the GDPR in the EU and CCPA in the United States.
• Relationship-Based Access Control: Allows for permissions to be assigned based on the context of the account’s relationships with other users and networks.

Third-Party Access: The Overlooked Risk

The intent of B2B IAM is to apply to large organizations with complex networks that have many external users. According to the Thales B2B IAM – The Hidden Value of Third-Party Identities, the combined total of external identities (including contractors, vendors, partners, and more) makes up almost half (48%) of users among surveyed organizations —highlighting a critical need for effective management to minimize risk and maximize productivity. This presents security vulnerabilities for organizations, which is the primary use case for B2B IAM, but it also creates a complex web of relationships, which can make for business challenges.

While IAM functions are generally understood as security tools, they are instrumental in many day-to-day business operations, facilitating secure and seamless access to resources and systems. Organizations managing many internal and external users may find that inefficient IAM can hinder productivity and disrupt workflows.

IAM is often regarded as a security measure, but for organizations managing complex external networks, it plays a critical role in enabling productivity. Users don’t value access for its own sake—they value the ability to get their work done efficiently. When access is cumbersome or delayed, it can impede their productivity and slow down collaboration. A well-designed B2B IAM solution overcomes these challenges, streamlining access for external users and partners while maintaining the robust security and compliance modern businesses demand.

The purpose of B2B IAM is as much about enabling businesses and maximizing operational efficiency as it is about cybersecurity. This makes it a crucial issue for board-level consideration, as it can significantly impact business operations across the entire organization. C-suite executives need to be aware of the advantages of B2B IAM in order to secure funding, staffing, and other resources for B2B IAM tools and initiatives.

How B2B IAM Addresses Business Objectives

While C-suite executives may not be very interested or invested in cybersecurity, the benefits of B2B IAM extend far beyond preventing cyberattacks and fortifying security. Implementing effective B2B IAM can help an organization achieve a variety of critical business objectives, such as:

• Risk Management: B2B IAM is a kind of third-party supply chain risk management that minimizes the risks associated with a large organization’s interconnected relationships and many external users. This goes a long way toward simplifying the interactions between organizations and their supply chain partners, as well as reducing the chance of third-party vulnerabilities impacting the organization.
• Compliance: Many large organizations with complex networks to manage are businesses in highly regulated industries, like financial services. B2B IAM not only fulfills compliance requirements, such as mandatory measures for mitigating third-party risk, but also produces detailed reporting and documentation to prove compliance.
• Customer Experience: Simplifying IAM functions for external users improves the customer experience by cutting down the amount of unnecessary time and effort that goes into IAM processes.
• Productivity and Efficiency: B2B IAM has advanced integration and scaling capabilities, making it a valuable choice for larger organizations. By streamlining processes like onboarding, offboarding, and access management for external users, B2B IAM increases business productivity and efficiency, reducing the number of resources taken up by these processes.

Positioning B2B IAM as a Strategic Investment

When advocating for B2B IAM as a critical initiative within your organization, focus on how it supports key business objectives. B2B IAM is not just a security tool—it drives operational efficiency and enhances productivity across external networks. By streamlining time-consuming and intensive processes like onboarding, offboarding, and access management for external users, B2B IAM can help larger organizations save time, labor, and other resources in more areas than just security.

Jose Caso 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.