The influence of managerial perceptions in the implementation of customer centricity strategy

Abstract

As the technological development and the change of business environment is faster than ever, companies are forced to pursue new ways of creating value. Customer centricity aims at providing solutions that create long-term value. The practical operational and cultural change requires transformation from a product-centric approach towards a customer-centric approach. The implementation is the action where customer centricity is transferred into practises by renewing the business model that illustrates the logic of value creation.

To provide a picture of factors influencing the implementation of customer centricity strategy and managerial perceptions, three key areas are examined. Firstly, it is important to understand what is the history and development of customer centricity, what customer centricity means in practice and what are the key challenges in order to become customer-centric. Secondly, it is further presented how customer centricity needs to be implemented in order to avoid the most common challenges. The importance of a business model is identified. Thirdly, perceptions are discussed from the previously mentioned themes. In addition, to support the overall validity of the studied area, the thesis introduces the findings of a qualitative empirical study from a multinational industrial company.

The findings of the study show that managerial perceptions create variation to the way strategy is understood and implemented. The research shows that the key issue in customer centricity strategy implementation is a business model that is linking strategic choices into practices.