| Summary: | Summary
The focus of many European and American companies is currently on "modular"
strategies in product design and production. A modular product has individual
elements which are designed independently but function together as a seamless whole.
In this article Mari Sako and Fiona Murray compare the experiences of the
computer industry - where modularity was consumer led - with that of the automobile
industry where the impetus for adoption has come from cost and complexity
reduction. They discuss the strategic choice between integration and modularisation
for original equipment manufacturers, note the changing role of suppliers, and
conclude by describing recent research which highlights regional differences.
The automobile industry has been the source of major strategic thinking throughout
this century. Ford's moving assembly line, for example, first standardised work, while
Taiichi Ohno's Toyota Production System and, more recently, lean production
techniques were important managerial innovations. The design, manufacture and
distribution of the automobile capture the key strategic challenges associated with a
complex and technologically sophisticated product with the result that companies in
other sectors have sought inspiration and lessons. Now the focus of many European
and American manufacturers is on so-called modular strategies in product design and
production. This article assesses the success of this new development and its value as
a strategic weapon in the search for new sources of competitive advantage in
manufacturing industries.
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