Business impacts

Business impacts of modularization

How modularization can impact business – a NEM example

Both research and company cases show that modularization has great potential to create continuous competitive advantages. These include:

  • Increased market offering
  • Increased market flexibility
  • Increased opportunities for market variance
  • Reduced time-to-market
  • Reduced manufacturing costs
  • Reduced stocks, spare parts, and handling costs
  • Reduced internal variance and thereby complexity
  • Improved supply base
  • Corresponding product development
  • Capital Expenditure Efficiency

Consider your characteristics

Three business types and their key benefits

The impact of modularization varies in practice, meaning that different business types will reap different benefits. When a company is to decide on a modularization strategy, the choice should therefore be determined by both the nature of its products or solutions and by the overall impact of different modular architectures.
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