In B2B industries, companies typically adopt either an asset-driven or a market-driven approach. Each model brings unique strengths, challenges, and long-term profitability prospects.
Asset-driven companies focus on maximizing the productivity of their physical assets, achieving cost efficiencies through large-scale production. In the B2B chemical industry, companies like BASF have optimized their production lines to achieve significant cost reductions, enhancing short-term profitability and stable growth. ExxonMobil Chemical also exemplifies an asset-driven approach, with its expansive petrochemical infrastructure enabling efficient operations at scale.
Market-driven companies, by contrast, prioritize understanding customer needs and adjusting their strategies accordingly. Dow Inc., for example, focuses on specialty chemicals, continuously innovating in response to customer demands for sustainable solutions. DSM, another market-driven leader, has pivoted to serve health and nutrition markets, aligning with consumer trends and capturing long-term growth potential.
Transitioning from Asset-Driven to Market-Driven: A Strategic Roadmap
Collect and integrate customer data across all departments.
Focus on Customer Lifetime Value (CLV) and customer equity rather than just asset efficiency.
Appoint a Chief Customer Officer to advocate for customer-centric strategies and reorganize to prioritize customer segments over product lines.
Both asset-driven and market-driven models can lead to success; however, market-driven organizations may offer higher adaptability and profitability over time. The choice depends on a company’s strategic priorities and readiness for change in a dynamic market environment.
Challenges in Transitioning from Asset-Driven to Market-Driven
Moving from an asset-focused culture to one that prioritizes customer needs requires a major mindset change. This shift can be difficult as employees accustomed to focusing on operational efficiency must instead think about value creation through customer insights. Resistance often arises because employees may view this as a departure from the company's traditional strengths.
For market-driven strategies to succeed, organizations need the infrastructure to collect, analyze, and act on customer data. Asset-driven firms may lack sophisticated customer data capabilities and rely heavily on production metrics. Building robust data analytics and CRM systems—and support your teams' learning to use these tools—demands substantial investment in time, technology, and skills.
Transitioning to a market-driven model often involves restructuring. Leaders need to establish roles like Chief Customer Officer (CCO) and shift decision-making to customer segment managers. For managers, this means redefining their roles to support a customer-centric culture, a change that can be unsettling for teams used to traditional structures.
5-Step Process to Lead Change from Asset-Driven to Market-Driven
Leaders and managers should exemplify the behavior they wish to see by actively engaging with customer insights and championing customer needs. This visibility encourages team buy-in and demonstrates the importance of the transition.
Build or enhance data collection and CRM systems to provide actionable customer insights that you can act on. Empower teams by providing learning opportunities to interpret data and develop customer-centric strategies.
Clearly outline the reasons for the shift, emphasizing how customer orientation can drive growth. Consistent, transparent communication helps teams understand the long-term benefits and purpose of the change.
Shift performance metrics from asset utilization to customer lifetime value and satisfaction. Align incentives with customer-centric goals, motivating teams to prioritize long-term value over short-term production efficiency.
Encourage cross-functional collaboration to break down silos. Marketing, customer service, NS R&D or technical—all of which are responsible for delivering long-term value—should work closely to ensure that strategies and products align with customer needs, driving a seamless market-driven approach across the organization.
With consistent effort and visible leadership, this shift can create a sustainable, customer-oriented culture that empowers growth and adaptability.
