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A Historical Paradigm Shift from Producer Centricity to Customer Centricity: An Organization Theory Approach to the Enabling Effects of Digital Technology

This paper discusses the ongoing paradigm shift in organization management from producer centricity to customer centricity from an organization theory perspective. This paradigm shift represents a historical transition from the mass production paradigm that has ruled the global economy for more than a century. This paper defines customer centricity as the new form of business management stemming from the recent development in digital technologies starting from about 2010 that has enabled firms to identify the specific preferences and behavioral patterns of individual customers and perfectly satisfy these preferences by providing a personalized portfolio of products and services for each individual. As such, this paper focuses on customer centricity as a shift in business perspective rather than on the specific technology that drives it. The rising prevalence of customer centricity has been ignited and accelerated by the rapid development of digital technologies, such as IoT (Internet of Things), Big Data, AI (Artificial Intelligence), and Blockchains, all of which enable firms to identify the preferences and behavioral patterns of an unlimited number of individual customers. To make sense of this historical paradigm shift theoretically, this paper first examines the institutionalization of producer centricity beginning a century ago as theorized by Alfred Chandler. 
Then, it explains the historical conditions that gave rise to customer centricity about a decade ago. Next, this paper reviews the specific characteristics and practices of this newly emerging customer centricity. Finally, this paper concludes by discussing the potential limits and risks of customer centricity.