# Companies must understand what needs to change in terms of digitalization and how
Published: 2021-09-21
Category: News
Category URL: https://palmbayherald.com/category/news/
Meta Title: Transformative Impact of Digitalization on Consumer Goods
Meta Description: Discover how digitalization is reshaping businesses with insights from Susanna Takkunen's research at Aalto University Executive Education in Finland.
URL: https://palmbayherald.com/companies-must-understand-what-needs-to-change-in-terms-of-digitalization-and-how/

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[Digitalization](https://palmbayherald.com/aramco-and-cognite-join-forces-in-new-data-venture/) is rapidly altering the way business operates, and it is vital that companies keep up with the pace of change, according to new research from Susanna Takkunen at Aalto University Executive Education in Finland.

According to Takkunen, digitalization is transformative – it fades the boundaries between different industries and [changes](https://palmbayherald.com/non-toxic-cleaning-that-takes-climate-change-seriously/) the logic behind [companies’](https://palmbayherald.com/best-companies-in-america/) value creation and utilization.

It also has a strong impact on consumer behavior and purchase patterns, which is why for her dissertation, Takkunen, Doctor of Business Administration at Aalto University Executive Education, followed eight international companies operating within the consumer goods industry. She interviewed the companies’ employees, attended their workshops and discussed research results with them.

The results indicated that the [companies’](https://palmbayherald.com/best-companies-in-america/) interpretation of and attitude towards [digitalization](https://palmbayherald.com/aramco-and-cognite-join-forces-in-new-data-venture/) was determined by whether they considered their primary customer base to be retailers or [consumer](https://palmbayherald.com/talkwalker-implements-large-language-models-an-industry-first-for-consumer-intelligence/) customers.

“The companies which believed that digitalization would drastically [change](https://palmbayherald.com/non-toxic-cleaning-that-takes-climate-change-seriously/) consumer behavior realized that in order to succeed in the market, they would need to change their business model and focus on the consumer rather than the retailer,” explains Takkunen.

Customer-centric thinking has been talked about for decades, but in practice, companies in the consumer goods industry have often considered retailers to be their primary customer group.

[Business](https://palmbayherald.com/what-is-business-administration/) models have been based on the idea of [consumers](https://palmbayherald.com/talkwalker-implements-large-language-models-an-industry-first-for-consumer-intelligence/) buying products from a specific location, with companies focusing on the retailer and competing for specific advertising spots and shelf space.

“In the digital world and amid its transformation, however, the way of business thinking needs to [change.](https://palmbayherald.com/non-toxic-cleaning-that-takes-climate-change-seriously/) In order for the transition from retailer-centric to consumer-centric thinking to succeed, a clear company policy must be laid out by the upper management, shifting focus onto the end users of the products,” says Takkunen.

Sufficient time must also be set aside for digital transformation. If companies do not start strong in their transformation process, in five years’ time they won’t be able to do so anymore, as new players are entering the industry all the time.

Ultimately, companies understand what digitalization is all about, but the challenge is to understand what needs to change, and how.

About the Aalto Executive DBA – Doctor of [Business](https://palmbayherald.com/what-is-business-administration/) Administration program

The Aalto Executive DBA (Doctor of [Business](https://palmbayherald.com/what-is-business-administration/) Administration) program is designed for experienced executives who wish to complete a doctoral degree alongside their work.

Susanna Takkunen’s dissertation has been funded by Business Finland and the Jenny and Antti Wihuri Foundation.


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