Business impact of modularization

How modularization impacts business

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

Business impact exemplified

Consider your characteristics

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.

Further reading on modularization benefits

Three business types and their key benefits

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