4. Copenhagen Business School, January 2010 Modularization The opportunity for mixing and matching of components in a modular product design in which the standard interfaces between components are specified to allow a range of variation in components to be substituted in a product architecture (Hsuan, 1999) Modular system A system composed of units (or modules) that are designed independently but still function as an integrated whole ( Baldwin & Clark, 1997)
5. Modular Perspectives... Product architecture Organisational modularity Supply Chain R & D Product development Operations Management Service modularity Strategy Copenhagen Business School, January 2010 Modularity
A difficult area spanning many areas and therefore requiring clarification
Cost is clearly a driver – smart production – involves decisions relating to who makes what in the supply chain
PA – issues relating to degree of design and product integration determines degree of modularity Org mod – do mod prods/services lead to org modularity? Mod may be a strategic decision requiring significant change within and beyond the organisation