Operational Strategy for Implementing Digital Transformation in the Manufacturing Industry: The Direct to Consumer(D2C) Approach

The purpose of this study is to review how companies successfully implemented customer- oriented D2C (direct-to-consumer) operations management and analyze the D2C operational characteristics of these firms. Specifically, the study focused on case analysis of three companies that switched their sales approach to D2C and examined the consequences of this change in three areas: customer problem solving, centralization strategy, and purchasing strategy for value creation. First, the study revealed that all three case companies applied the D2C operational management strategy to effectively respond to customer requests. Second, since online platform operations of the firms were similar, a centralization strategy should be pursued with differentiated product composition or service for each company. Third, the three companies should have considered communication with customers through the purchasing process for value creation, which would have been an important strategy. Based on the case analysis, the following are suggested as four critical success factors for D2C operations management: implementation capability of advanced information and communication technology (ICT); data acquisition, analysis and utilization capability; agile response capability; and operations management capability. The results of this study provides strategic insights and basic guidelines required for D2C operations implementation to companies that are preparing or considering the transition to the D2C model.