A good modular system balances the scope of the system and its lifespan with the effort to create it. In this post, I will suggest a schematic metric that explains the value over time of such a modular system. I will also explain how this schematic metric can support decision-making around modular systems, and I will conclude with an example of a company that learned how to balance, the hard way.
In this post, I will move beyond the idea of good, balanced module systems into how they can be leveraged across multiple product platforms to generate even greater profitability. I will continue with the same example company that started with independent module systems and transitioned to ones that are broadly shared.
Most companies today are operating in multiple market segments and regions where customers demand unique products customized to their preferences with a steady stream of new features and performance. The challenge is to simultaneously meet the market demand of mass customized products while cutting internal costs, complexity, lead times and time to market.
