Synthesis
Unicist B2B Distribution 4.0 requires an integration of the participants in a system. This participation requires having a spirit de corps, which is necessarily based on the brand power and the differentiation of the value propositions of the company.
The distribution of products and services is strongly dependent on communication and delivery possibilities. The technologies of the 4th Industrial Revolution, which were triggered in 2020 by the COVID-19 crisis, introduced a change in the distribution models, which established new possibilities that were not manageable before.
The change of distribution based on the integration of virtual communication as a standard in the world became necessary for healthcare reasons. It allowed integration from end to end between the producers of goods and services and their final customers and users.
The Unicist Distribution 4.0 model can be synthesized by:
- The integration of the value chain from the producer to the consumer or user. It implies integrating distributors and clients as part of the organization.
- The use of a client-centered management model that ensures results, customer orientation, and the generation of value.
- The development of a virtual relationship model that allows the building of complementary relationships in a virtual environment.
- The functionality and the operation of an integrated business model need to be transparent and reliable for all the members.
Description
The Types of Distribution 4.0 Models
There are four possible distribution models:
- Business Driven
- Relationship Driven
- Specialization Driven
- Integration Driven
Business Driven
The business-driven model is based on establishing transparent complementary relationships between the company, the distributors, and the customers/clients.
This business model is based on establishing the value that needs to be provided by the distributors and sustained by the brand of the provider. The core of this distribution model is the assurance of the functionality of the solutions provided.
This business model is natural in environments where the clients expect a sort of outsourcing process for the provision of goods as a service. The expansion of the market is based on the use of market segmentation and the communication of the value added by the distributors.
Relationship-Driven
The relationship-driven model is based on the capacity of expanding relationships and is sustained by the relationships that have been built. The construction of relationships is sustained by a structural functional relationship management approach.
The core of this model is the development of complementary functional relationships that ensure the delivery of value to the clients and the management of transparent relationships where the clients/customers are aware of what happens in the organization. It implies that the brands of the provider and the client are asymmetric with a negative slope or symmetric.
This business model is natural in markets where the delivery is differentiated, and the products or services provided have a significant participation in the value chain of clients. The expansion of the market is based on the use of market segmentation and the expansion of the relationships of the distributors based on the asymmetric brand of the provider.
Specialization-Driven
The specialization-driven model is based on the assurance of a significant value proposition to clients. It implies establishing open relationships with clients/customers supported by the specialized knowledge of the participants in the value chain.
This model requires a high level of specialization in the development of solutions. It requires having a continuous education model that includes the participation of clients. This educational model is virtual and includes the development of real solutions by the participants.
This business model is natural in high-tech solutions markets where the functionality entirely depends on the adequate use of the technologies. It requires building up a qualification model for the participants for the building of solutions that allows empowering the image of solution providers. The expansion of the market is based on the use of market segmentation and the positioning of superior technologies including educational programs for clients/customers.
Integration-Driven
The integration-driven model is based on the development of a spirit de corps that includes the provider, the distributor, and the client. It requires being sustained by the high level of technology and the segmented power of the brand.
This model requires envisioning the market and the possibilities of the technological evolution of such a market. It is based on fully understanding the subjective value of the propositions that integrate their use value, the reference value, and the opportunity value.
This business model is natural in markets that are driven by a high speed of technological evolution. These markets require continuous applied research activities and technical updates to be able to influence the market by developing leading solutions. The expansion of the markets is based on the use of market segmentation, the development of sponsors, and the contagiousness of the solutions.
Conclusion
After several years of application, the Distribution 4.0 model seems to be the natural approach to distribution in the era of transparency brought about by virtual communication. A lack of transparency naturally gravitates towards the traditional distribution model where providers, distributors, and users or consumers compete, shying away from establishing complementary relationships.
The Unicist Research Institute
