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Changes in the Producer-Consumer Relationship -

Towards Digital Transformation
Everlin Piccinini

Robert Wayne Gregory

Lutz M. Kolbe

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Piccinini, Everlin; Gregory, Robert Wayne; and Kolbe, Lutz M., "Changes in the Producer-Consumer Relationship - Towards Digital
Transformation" (2015). Wirtschaftsinformatik Proceedings 2015. 109.
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 Changes in the Producer–Consumer Relationship –
Towards Digital Transformation

Everlin Piccinini1, Robert W. Gregory2, Lutz M. Kolbe3

1,3
Georg-August-University Göttingen, Information Management, Göttingen, Germany
{everlin.piccinini, lutz.kolbe}@wiwi.uni-goettingen.de
2
IESE Business School, Information Systems, Barcelona, Spain
[email protected]

Abstract. The purpose of this paper is to analyze shifts in the producer–

consumer relationship resulting from the increased use of digital technologies.
In this study, we aim to understand how this relationship is fundamentally
changing and the role of digital technologies in such a change. Therefore, we
provide a state-of-the-art review of information systems and management litera-
ture using analysis techniques borrowed from the method of grounded theory.
The results of our study indicate that the constructs of digital density, digital in-
terconnectedness, and consumer-centricity are key drivers of changes in the
producer–consumer relationship. With the growing role of digital technologies
in both society and organizations, our study contributes with implications for
information technology and business managers, offering them insights on how
to deal with this phenomenon. Finally, our study provides a useful framework
for future interdisciplinary research in this field.

Keywords: Producer–consumer Relationship, Systematic Literature Review,

Digital Transformation, Digitalization.

1 Introduction

Recent advances in digital technologies are determining significant and unprecedent-

ed changes in many aspects of our social and economic lives [1], [2]. Digital technol-
ogies are considered to be combinations of information, computing, communications,
and connectivity technologies, such as social media, mobile devices, analytics, and
cloud computing [2], [3]. These consumer-originated technologies have become im-
mersed in every workplace and home as part of our daily routines, fundamentally
changing the way we communicate, consume, and create [4], [5]. Considering the
speed at which digital tools are proliferating, by 2015 there are expected to be 20
billion connected devices in the world; this naturally has an impact on how consumers
relate to information and thus to producers [6].
Producers are defined as organizations that make or supply products or services for
sale, while consumers are defined as people who use a product or service [7]. The
producer–consumer relationship is defined “as an exchange relationship in which
each party trades one kind of value for another” [7]. Through significant advances in

12th International Conference on Wirtschaftsinformatik,

March 4-6 2015, Osnabrück, Germany

Piccinini, E.; Gregory, R. W.; Kolbe, L. M. (2015): Changes in the Producer-Consumer Relationship -
Towards Digital Transformation, in: Thomas. O.; Teuteberg, F. (Hrsg.): Proceedings der 12. Internationalen
Tagung Wirtschaftsinformatik (WI 2015), Osnabrück, S. 1634-1648

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digital technologies in the last decade, a shift in this relationship is taking place [8],
[9]. Consumers not only know what is available to them in the marketplace—the pre-
cise prices and attributes of available products—but they can also contribute to inno-
vations that will find their way into the enterprise world [8]. Traditional businesses,
such as banking and the automotive industry, are forced to react to such shifts in con-
sumer behavior and are focusing on digital initiatives to better respond to changing
consumer needs. For example, Volvo Cars Corporation, a Swedish player in the glob-
al car industry with operations in 100 countries worldwide, is focusing on mobility
technologies (e.g., connected cars), social media, and smart embedded devices in
order to develop a more direct relationship with the end consumer and improve the
consumer experience [6]. Although many organizations have been using digital tech-
nologies to improve customer relationships, they still fail to harness such technologies
to enhance consumer interaction and value [10], [9]. Moreover, digital initiatives are
often unsuccessful because organizations know little about the changing dynamics of
consumer requirements and behavior in the digital landscape [11]. Therefore, a deeper
understanding of the shifts in the producer–consumer relationship is extremely needed
in order to enhance interactions and exchange of value.
Shifts in society and organizations due to the increasing use of digital technologies
are considered to be drivers of an overarching phenomenon described as digital trans-
formation [3], [11]. Digital transformation is characterized by the use of new digital
technologies to enable significant business improvements [3]. Prior information sys-
tems (IS) research on digital transformation has mainly focused on managerial issues
to help both technology and non-technology organizations create differential business
value in the digital landscape (e.g., [2], [12], [8], [9]). For example, Bharadwaj et al.
[2] focus on the development of strategies to leverage digital resources in organiza-
tions. Granados and Gupta [12] discuss the importance of information-transparency
management in order to selectively disclose information to consumers, suppliers, and
competitors through digital channels. Furthermore, Setia et al. [9] point out the need
for new forms of digital collaboration and customer-side digital design strategies.
Nevertheless, to the best of our knowledge, there is a lack of research focusing on the
changes in the producer–consumer relationship resulting from the proliferation of
digital technologies and their implications for the phenomenon of digital transfor-
mation.
This paper focuses on examining these changes through a systematic literature re-
view of existing IS and management research. Our aim is to address the following
research question: How are digital technologies fundamentally changing the produc-
er–consumer relationship? Following other IS researchers who also aimed to contrib-
ute to the understanding of the phenomenon of digital transformation (e.g., [2], [12],
[8]), we will not limit the focus of this research to a certain type of industry. We aim
to develop a general understanding of changes in producer–consumer relationships by
analyzing literature on both technology and non-technology organizations in order to
present the state of the art and offer guidance for further research development.
In the remainder of this paper, we briefly introduce the concept of technology-
driven transformation in society and organizations to serve as a basis for understand-
ing the phenomenon of digital transformation. Thereafter, we explain our research

1635
process, including a detailed description of how we conducted a systematic literature
review using techniques borrowed from the method of grounded theory. Drawing
from the findings of our literature review, we propose an initial theoretical framework
that can be used to understand the shifts in the producer–consumer relationship as a
result of digital technologies. Finally, we discuss the relevance of this framework for
both research and practice.

2 Theoretical Background: Technology-Driven Transformation

A shift concerning people’s interactions with digital products is taking place, moving
from evaluating performance to researching experience [13], [14]. This change is
partially due to the increased connectivity, mobility, and domestication of digital
products and services, which reflects the increasing relevance of digital devices in
issues of lifestyle and how people choose to express their identities [14]. New digital
technologies (e.g., mobile products and services) are everyday artifacts that have em-
bedded computing capabilities and provide digitally mediated experiences embodied
in everyday activities [15]. Computing through such technologies is not generally a
user’s primary focus; instead, computing often takes place on the periphery of every-
day activities, such as running, driving, and communicating [15]. The evolution of
digital technologies has lifted social life from the here and now, separating time from
space and changing the way people live, communicate, work, and consume [15], [16].
A number of IS scholars have strived to define what a transformational technology
is [8]. Many authors (e.g., [17], [8]) refer to the work of Dehning et al. [18] in order to
explain technology-driven transformation in organizational contexts by using the
following criteria:
 “(It)fundamentally alter(s) traditional ways of doing business by redefining busi-
ness capabilities and/or (internal or external) business processes and relationships
 (It) potentially involve(s) strategic acquisitions to acquire new capabilities or to
enter a new market space
 (It) exemplif(ies) the use of IT to dramatically change how tasks are carried
out,…is the move recognized as being important in enabling the firm to operate in
different markets, serve different customers,… (and) gain considerable competitive
advantage by doing things differently” [18].
Lucas et al. [8] propose seven specific dimensions for describing a technology-
driven transformation: change in processes, creation of new organizations, change in
relationships, change in user experience, change in markets, change in the amount of
customers, and disruptive impact. A technology must impact three or more of these
dimensions in order to be classified as transformational [8].
The dimension of change in processes was given considerable attention in the de-
velopment of process virtualization theory, which describes the transition from a
physical process to a virtual one in which the physical interaction between people
and/or objects has been eliminated (e.g., electronic commerce, online distance learn-
ing, online banking) [19-20]. Process virtualization can be compared to the phenome-

1636
non of digitizing, i.e., the technical process of transforming analog signals into a digi-
tal form [21]. Conversely, the phenomenon of digitalization refers to “a sociotechnical
process of applying digitizing techniques to broader social and institutional contexts
that render digital technologies infrastructural” [21].
Furthermore, the phenomenon of digitalization has recently been discussed in the
context of digital transformation in applied managerial literature (e.g., MIT Sloan
Management Review), where digital transformation was defined as “the use of new
digital technologies (social media, mobile, analytics or embedded devices) to enable
major business improvements (such as enhancing customer experience, streamlining
operations or creating new business models)” [3]. Seeger and Bick [11] propose that
megatrends (e.g., globalization, sharing economy, and revolutionizing technology
demands) as well as consumer trends (e.g., ownerless and personalization) are im-
portant drivers of such digital transformation.
In this paper, we aim to use data from existing literature to explain how digital
technologies are changing the producer–consumer relationship in order to further
contribute with essential insights for better understanding the phenomenon of digital
transformation.

3 Methodology

Our research approach was based on a rigorous systematic literature review in the
form of a five-stage iterative process. We used techniques borrowed from grounded
theory as an analysis method, following the suggestions of Wolfswinkel et al. [22].
The main characteristic of grounded theory is its inductive nature, i.e., theory and key
concepts emerge from the analysis of data [23], [24]. In a grounded theory literature
review, concepts arise from the literature [22]. The advantage of using grounded theo-
ry in the analysis of a literature review lies in the systematic evaluation of textual
data, in which ideas are developed and integrated to produce insights and conceptuali-
zations for the research proposal [22], [25]. Wolfswinkel et al. [22] propose a step-by-
step guide for applying grounded theory in the analysis of a systematic literature re-
view, aiming to achieve more rigor and transparency in the reviewing process. This
guide is aligned with other authors’ guidelines for conducting literature reviews, in-
cluding the framework of Webster and Watson [26], and is illustrated in the following
Table 1.

Table 1. Processes of systematic literature review with techniques borrowed from grounded
theory, adapted from Wolfswinkel et al. (2013)
Stage Description
Define Identification of the fields of research and definition of the criteria for in-
clusion/exclusion, as well as specific search terms
Search Search process
Select Refinement of the sample
Analyze Use of analytical coding steps (open, selective, and theoretical coding)

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In the first stage of our literature review, we aimed to identify the most suitable set of
data to be analyzed. We decided to focus on international peer-reviewed IS journals
and major IS conferences ranked in the VHB-JOURQUAL (the journal ranking of the
German Association for Business Research) in order to develop a state of the art
about changes in the producer–consumer relationship within this discipline to con-
tribute to IS studies on digital transformation. Since our research topic also has mana-
gerial implications, we considered international peer-reviewed management journals
as well. As the research topic is relatively new and of an applied nature, we also de-
cided to scan applied management journals [27], [25]. Ultimately, we defined the
terms “digital technolog*”, “digital transformation”, “digital business*”, and “digital-
ization” as our search string. We limited our search by focusing on literature that
deals with our defined topic, i.e., changes in the producer–consumer relationship as a
result of digital technologies.
In the second stage, we used our search string in the following databases:
EBSCOHOST, ScienceDirect, JSTOR, IEEE Xplore, and AIS Electronic Library. The
search string was applied in the title, abstract, keywords, and main text of the articles.
In this stage, we identified a total of 138 publications.
In the third stage, our refinement process involved a careful screening of the identi-
fied publications, primarily focusing on the articles’ titles, abstracts, introductions,
and conclusions [28], [29]. Here, we aimed to select articles that explicitly discuss
changes in the producer–consumer relationship resulting from digital technologies,
i.e., digitalization. Articles related to changes in organizational processes or products
that were not consistent with the topic of our study were excluded, resulting in a total
of 19 relevant articles. To assure comprehensive coverage of all important studies, we
extended our selection process by conducting a forward and backward search, as sug-
gested by Webster and Watson [26]. We used the Web of Science database for the
forward search. Our final sample consisted of 21 articles.
In the fourth stage of the literature review, the key principles of grounded theory
were applied for analyzing the final sample of articles [22]. We began our analysis by
reading one article and highlighting any findings and insights in the text that were
relevant to our research question, according to the suggestions of Wolfswinkel et al.
[22]. All selected articles underwent this procedure at least once. “Every word, sen-
tence or paragraph that is highlighted in each paper represents a relevant ‘excerpt’ ”
[22]. We decided to use the techniques of grounded theory based on Glaser [30], and
therefore, while reading our final sample of articles for the purpose of excerpting, we
engaged in “open coding,” “selective coding,” and “theoretical coding,” as summa-
rized in Table 2.

Table 2. Steps of analysis borrowed from grounded theory

Steps of Analysis Task
Open Coding Coding data by assigning conceptual labels to it and identifying core
categories that help understand the analyzed phenomenon [30].
Selective Coding Further coding is limited to only those concepts and dimensions that
relate to the emerged categories [30], [31].
Theoretical Coding Analysis of relationships between the outcomes of open and selective
coding as hypotheses to be integrated into a theory [30], [24].

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 In order to achieve reliability in our coding, one of the authors coded an article,
documenting the coding and the respective conceptual labels in a dated codebook,
following the suggestions of Wolfswinkel et al. [22]. The other authors controlled and
examined that coding by reading the excerpts assigned to the conceptual labels, result-
ing in intensive discussions over the interpretation of the data. As each of the three
coding processes was finished, the authors discussed the coding, only moving on to
the next coding step after agreeing that a theoretical saturation had occurred. Accord-
ing to Wolfswinkel et al. [22] and Glaser [30], a theoretical saturation occurs when in
the process of category development no new concepts, properties, or interesting links
emerge.

4 Results

In the following, we present and discuss the findings of our literature analysis. Essen-
tially, perceptions about changes in the producer–consumer relationship as a result of
digital technologies are presented in our results in the form of quotations and coding.
This should provide an initial understanding of how the data was analyzed and how
our coding was conducted. In the course of our literature analysis, we identified three
main categories that help explain the topic of our study. Each category as well as its
respective dimensions and codes are represented in Table 3. In this table, we use short
quotations per code to exemplify our coding process. Here, we chose quotations that
help the understanding of how the code was identified.

Table 3. Results of the literature review

Categories Dimension Code Quotation
Shifts in Digital Information “The ability to connect to the Internet through
consumer density 1 availability a variety of inexpensive and mobile devices
behavior […] has made anytime, anywhere connectivity
a reality.” [32]
Consumer “Consumers just know what is available to
informed- them in the marketplace, with accurate and
ness precise understanding of price and of the exact
set of attributes that each good or service offers
them, changing consumers’ behavior.” [8]
Digital “One no longer needs a travel agent to recom-
competence mend a property or book a hotel. One no longer
needs a sales person to explain or recommend a
camera and one no longer even needs a service
representative to deal with problems with pur-
chases.” [8]
Democrati- “Consumers use new media to participate in
zation of social networks, which enable them to create
content and share content, […] and build relationships
with other consumers.” [33]

1
We borrowed this term from Káganer et al. 2013 but used it in a different way in line with what
emerged from our coding.

1639
Categories Dimension Code Quotation
Shifts in Digital Changes in “With the mutual maturation of the personal
interactions intercon- consumer– computer and the Internet, the ‘bleeding edge’
nected- technology has been taken over by individuals who are
ness interaction persistently finding new and different ways to
use technology for their personal benefit.” [32]
Changes in “The phenomenon of users’ recommending
consumer– favorites to friends and followers plays an
consumer important role in shaping other users’ behav-
interaction iors and purchases.” [34]
“Every piece of lost luggage and every disas-
trous room experience shows up in a report on
TripAdvisor” [35]
Changes in “Due to the real-time online nature of the In-
consumer– ternet, relationships between organizations and
producer customers are becoming more interactive in the
interaction market space.” [36]
Shifts in Consum- Individual “Newspapers were a one-size-fits-all product.
producer er- customiza- Today, online editions can be customized to
behavior centricity bility include just the news and information that a
particular subscriber is likely to want.” [37]
“Informed customers are increasingly demand-
ing products and services tailored to their spe-
cific needs.” [38]
Hyperdif- “When consumers can find out anything they
ferentiation want about any product of interest, entire in-
dustries have been transformed, and consumers
have more choice than at any time […]. From
beers and soft drinks to consumer electronics,
from financial services to travel, manufacturers
have moved from mass-market fat spots to
highly focused high margin ‘sweet spots.’” [8]
Improve- “The customer experience embodies what it’s
ment of like to be a digital customer of your organiza-
consumer tion, whether buying digital or physical prod-
experience ucts. E.g,: Amazon’s well-developed customer-
created content: customer product ratings and
reviews, as well as sophisticated tools like
search, and recommendations.” [39]
Consumers “Many e-business companies, have established
as partners online customer communities to allow their
customers to share tips, point out glitches and
lobby for changes. These customers have be-
come their de facto product development
teams.” [40]
Response “Speed as a dimension becomes important in
agility the context of responding to customer service
requests in real-time through Twitter, Face-
book and other social media platforms. Slow-
ness in response could mean customers moving
away from companies perceived as being out
of tune with the new reality.” [2]

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 In the following, Table 4 illustrates the articles that provided us with the complete
references for the all the entire quotations we used, which supported each of the iden-
tified coding.

Table 4. Results of the literature review: list of articles

Code References
Information availability [32], [33], [15]
Consumer informedness [35], [12], [38], [8], [9]
Digital competence [37], [12], [8]
Democratization of content [4], [2], [35], [34], [33]
Changes in consumer–technology interaction [3], [32], [15]
Changes in consumer–consumer interaction [35], [34], [39], [41]
Changes in consumer–producer interaction [42], [36], [39]
Individual customizability [37], [35], [36], [40], [38]
Hyperdifferentiation [35], [8]
Improving consumer experience [36], [3], [43], [44], [39]
Consumers as partners [43], [40], [38], [8], [45], [33]
Response agility [2], [35], [40], [9]

5 Discussion of Findings

In searching for shifts in the producer–consumer relationship in our final sample of

articles, our data indicated three categories to be examined: shifts in consumer behav-
ior, shifts in interactions, and shifts in producer behavior. These categories and their
corresponding dimensions served as the basis for our framework development that is
explained in the following.

5.1 Shifts in Consumer Behavior

We conceptualized the category shifts in consumer behavior as the increase in the
integration of digital technologies into consumers’ lives along the dimension of digital
density that emerged from our data. This dimension presents some of the reasons why
changes in consumer behavior occur as a result of the increasing use and availability
of digital technologies. We found that information about products and services has
become more and more accessible to consumers; information is everywhere, and
through inexpensive digital technologies, this information is becoming increasingly
available at any time, anywhere, to everybody [32], [33]. This increases consumer
informedness. Consumer informedness means that consumers are well informed about
products or services available on the market, with precise prices and attributes, which
influences their willingness to pay and changes their purchasing decisions [35] [38].
This increase in consumer informedness and consequent change in consumer behavior
will become as important to organizations as a review of competitors and their current
portfolios, because it forces a revision of the corporate strategy [41]. As consumers
become more informed, they develop a certain digital competence. This refers to the
ability that consumers develop through Internet and mobile technologies to solve

1641
many purchase and service issues online, without the assistance of a company’s in-
termediary when buying goods and checking the status of their order online [12], [8].
While this trend benefits consumers and individual investors, it threatens intermediar-
ies [18]. As a consequence, a “democratization of content” takes place. Organizations
no longer retain control over the information they used to push to consumers through
marketing channels. Through digital media, consumers are able to create, propagate,
and amplify content about organizations (e.g., in consumer reviews), which deter-
mines the consumer’s perception of an organization and its offerings [35], [4]. This
results in significant power shifts in market channels and disintermediation, disrupting
traditional organizations and creating a fundamentally new source of value [8].
In summary, with an increase in digital density, consumers have greater access to
information through digital channels, are more informed about different products and
services, are becoming more capable of solving problems with products or services
online without the help of intermediaries, and are able to create and propagate content
by themselves.

5.2 Shifts in Interactions

The category shifts in interactions is defined by the dimension of digital interconnect-
edness. The dimension of digital interconnectedness attempts to explain some reasons
for changes in the producer–consumer relationship due to new means of interaction
enabled by digital technologies. For example, we found that there is a rise of technol-
ogy-savvy, interconnected consumers who are finding new and different ways of
consuming and using technology for their personal benefit. This changes the expecta-
tions consumers have toward companies, since consumers expect easy usability of
digital products [32], [15], [3]. Additionally, digital technologies have been facilitat-
ing interactions among consumers. In the search for quality information, the exchange
of opinions among consumers (e.g., sharing of product information in social net-
works, online reviews, and blogs) has become increasingly important and influential
[35], [41]: “24% of Internet users access online reviews before paying for a service
delivered offline” [41]. Finally, the consumer–producer interaction has also changed
due to advances in digital technologies. Consumers express an increasing need to
interact with companies on a 24/7 basis. They want the flexibility of conducting busi-
ness outside of normal office hours, e.g., at home at night they might want to make a
money transaction, order something online, or track a sent package [37], [39]. Fur-
thermore, digital technologies provide organizations with vast amounts of information
on their customers, such as customer’s locations, behavior and social interaction.
While such information provides firms the ability to offer highly customized services
to their customers, it requires numerous changes in organizations, particularly regard-
ing privacy policies at organizations and increases consumers’ concerns about data
privacy [42].
To sum up, digital interconnectedness is enabling new means of interactions be-
tween (1) consumers and technologies (i.e., it changes the way consumers use or even
develop new digital technologies), (2) consumers and consumers (i.e., there is an
easier and more dynamic exchange of information about products and services), and

1642
(3) consumers and producers (i.e., there is an increasing need to obtain responses
about products and services anytime, anywhere).

5.3 Shifts in Producer Behavior

We defined the category shifts in producer behavior as the way organizations are
strategically reacting to changes in consumer behavior, based on the dimension of
consumer-centricity that emerged from our literature analysis. This dimension de-
scribes how digital technologies empower consumers to influence organizations to
deliver a higher range of improved products and services and the way in which organ-
izations attempt to engage empowered consumers through digital technologies. In-
formed consumers can optimize their choices and organizations can now optimize
their selection of offerings [35]. For example, through advances in digital technolo-
gies, online or mobile editions of newspapers can be customized according to the
specific preferences of individual customers [37]. This implies that organizations can
focus on data mining and can exploit the potential of individual customizability in
order to meet the needs of each of their consumers [36]. Furthermore, as consumers
can find out practically anything they want to about any product of interest, compa-
nies have tried to create as many offers as possible in the market [35], [8]. This hy-
perdifferentiation of products has also enabled organizations to focus on niche mar-
kets of consumers that appreciate being different and have become loyal to such or-
ganizations. This can be seen in the case of environmentally friendly cars with too
little acceleration. Recently, General Motors faced difficulties in competing with
Toyota but not because of quality issues: “it is just that Toyota’s cars are more inter-
esting, and consumers are far more likely to be passionate about a Prius hybrid than
about a Buick” [35].
Organizations are focusing on improving the consumer’s digital experience in or-
der to “strengthen the bond between the customer and the firm” [44]. Improving con-
sumer experience is about enhancing products and services in customer-friendly
ways, whether consumers buy digital or physical products [3]. For example, in the
automotive industry context, organizations that provide consumers with the ability to
shop or finance a purchase online have turned purchasing a car into a fun and interest-
ing experience [34]. Furthermore, consumers are no longer merely buying products
and services [38]. Through new technologies, the interaction between consumers and
producers has increased in a cost-effective way, supporting new product development,
product improvement, and product problem solving by exploiting consumer
knowledge and involving consumers as partners [45], [40]. By co-acting with custom-
ers or interacting with them virtually, organizations are able to sense and respond
readily to consumer-driven changes in needs. This has become imperative for the
survival of organizations in the digital age [40].
In summary, because consumers are more informed and empowered through digi-
tal technologies, producers are changing the way they develop new offerings, which
are becoming more individually customized and hyperdifferentiated. Producers are
also changing the way they engage with consumers, i.e., there is a greater need to
improve consumer experience, respond quickly to consumer needs, and use consumer

1643
interactions to co-create products and services. Thus, producers are becoming more
consumer-centric.

5.4 Relationship between Categories: Building a Theoretical Framework

Through our systematic literature review supported by analysis techniques borrowed
from the method of grounded theory, we developed a theoretical framework that at-
tempts to provide understanding about the way digital technologies are shifting the
producer–consumer relationship. Our framework indicates the relationships between
the categories we found in our study, summarized in Figure 1. The framework indi-
cates that shifts in consumer behavior occur due to an increase in digital density (i.e.,
through information availability, consumer informedness, digital competence, and
democratization of content). Consequently, digital density leads to shifts in the way
consumers interact with technology, other consumers, and producers. Moreover, these
shifts in interactions make producers rethink the way they engage with consumers. By
acknowledging that consumers are more empowered through digital technologies,
producers are reacting to changes in consumer behavior by becoming more consumer-
centric and changing the way they exchange values (e.g., by co-creating digital prod-
ucts and services). Additionally, our framework indicates that another interplay order
in the relationship among the categories is possible. For example, in the process of
product co-creation, producers are enabling closer and engaged interactions with con-
sumers, which may influence consumers to write positive product reviews or create
digital word-of-mouth about certain producers. Therefore, we assume that the rela-
tionships between the categories found in our study are interdependent. Nevertheless,
further research is needed to deeply analyze these relationships.

Shifts in consumer behavior Shifts in interactions Shifts in producer behavior

Digital Density Digital Interconnectedness Consumer Centricity

• Information availability • Changes in consumer-technology • Individual customizability
• Consumer informedness interaction • Hyperdifferentiation
• Digital competence • Changes in consumer-consumer • Improvement of consumer experience
• Democratization of interaction • Consumer as partners
content • Changes in consumer-producer • Response agility
interaction

Drivers of digital transformation

Fig. 1. Changes in the producer–consumer relationship

5.5 Implications for Practice and Future Research

With the growing role of digital technologies in both society and organizations, our
study has many practical implications for guiding organizations in understanding the
source of changes in the producer–consumer relationship in order to help them design
and develop strategies to better deal with the digital consumer. Technology and non-
technology organizations alike need to be prepared to respond to and embrace em-

1644
powered consumers, as they can strongly impact an organization’s image. Business
and IT managers need to understand that the more empowered consumers are, the
more value technology-enabled products and services can generate for both consum-
ers and organizations themselves [43]. For example, producers can take advantage of
the increase in consumer–producer digital interaction and co-creation. Due to advanc-
es in digital technologies, producers can readily access consumer knowledge about
their products and services through different channels. Consequently, they can benefit
from consumer-side innovations (e.g., incremental services or new product develop-
ment) or from faster solutions to business problems that consumers find. The im-
portance of consumer interaction is a topic that has already been discussed in the dis-
cipline of marketing (e.g., [46]). Here, we argue that this topic is also extremely rele-
vant in the field of IS since consumer interaction has become much more dynamic as
a result of digital technologies and information technology (IT).
In addition, we suggest that organizations build management and IT capabilities to
harness digital technologies. According to Fitzgerald et al. [3], emerging technologies
(such as social media, mobile, and analytics) demand critical skills from management
in order to support organizations selecting relevant new technologies and use their
features and applications to improve consumer relationships. Such capabilities may
help organizations sense and respond to business opportunities and threats [9]. Fur-
thermore, we argue that digital capabilities in IT management are essential in order to
design and develop a digital infrastructure that facilitates consumer interactions and
enables a differentiated consumer experience, thereby enhancing consumer value.
This should help organizations on their way to a digital transformation.
Furthermore, we suggest several avenues for future research. Further empirical re-
search should be conducted in order to empirically analyze our proposed framework.
Therefore, examining changes in the producer–consumer relationship in practice
through a case-study analysis in both technology and non-technology organizations
would be recommended. Furthermore, our study has indicated that consumers are
playing a more active role in co-production, co-creation, and problem solving. Over-
all, this reminds us of the discussion about “prosumers” (e.g., [7], [47]). We argue
that the concepts of prosumer, “one who is both producer and consumer,” and
prosumption, “involving a combination of production and consumption” [47], which
were already examined in the disciplines of marketing and sociology, should also be a
topic of further research in the IS community.

6 Conclusion

In this paper, we provided a literature review in order to understand how changes in

the producer–consumer relationship are occurring as a result of the increasing use and
accessibility of digital technologies. An important finding of our study is that digital
density, digital interconnectedness, and consumer-centricity can be seen as essential
drivers of changes in this relationship. This indicates that consumers have developed a
higher expectation concerning information quality, response agility, and means of
interacting with organizations. Furthermore, the producer–consumer relationship has

1645
become more consumer-centric. In order to add value to their consumers, organiza-
tions are responding to the (digital) shifts in consumer behavior by focusing on indi-
vidually customized and hyperdifferentiated products and services, attempting to
match the particular needs of their individual customers. With our analysis and dis-
cussion, we attempt to contribute to IS studies on digital transformation by providing
an overview of the current understanding of the nature of changes in the producer–
consumer relationship, which is an important driver of digital transformation in or-
ganizations. Additionally, due to the discussed shifts in the producer–consumer rela-
tionship that are strongly enabled by new digital technologies, implications for future
research on “prosumerization” as a driver of digital transformation should be taken
into consideration. In IS there is an ongoing debate about our identity and defining
our research focus. The phenomenon of digital transformation illustrates the potential
for building unique IS theory that serves as a reference across disciplines.

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