The rise of direct-to-customer: Investigating the impact of digitalization, productivity, and sustainability on solution-oriented value architectures
ISBN
978-84-128130-4-3
Type
conference paper
Date Issued
2024
Author(s)
Abstract
This study explores the drivers behind product manufacturers adopting direct-to-customer (DTC) approaches to engage more closely with customers. It examines how digitalization, productivity concerns, and sustainability influence the shift from product to solution-oriented offerings through a two-year qualitative single-case study in the construction industry, focusing on a power tools manufacturer. Findings reveal that digitalization requires seamless integration with customer systems, productivity pressures necessitate customized solutions for efficiency, and sustainability trends demand transparency and lifecycle management. The research highlights the emergence of hybrid value architectures, combining direct and indirect channels, and emphasizes the importance of collaboration between manufacturers and distributors. This study contributes to servitization literature by providing insights into value architectures in distribution partnerships and how manufacturers can navigate evolving market demands.
Language
English (United States)
Keywords
Direct-to-customer (DTC)
value architecture
solution business
distribution network
Book title
Book of Abstracts - 11th International Conference on Business Servitization
Publisher
OmniaScience
Start page
116
End page
122
Event Title
11th International Conference on Business Servitization (ICBS 2024)
Event Location
Lisbon