MB Collaborations Joins Modular Management


More Advantages for Your Product Architecture

MB Collaborations has joined Modular Management. Together we can provide even better support for the development of your modular product architecture.

Modular Management is the world’s leading consultancy for the creation and governance of modular and configurable product architectures. Let’s look at the added value this means for you, not least in terms of:
  • Linking corporate strategy to products and business results
  • Providing business cases for modularization, including complexity costs
  • Identifying customer needs and market segments as a prerequisite for your modular product strategy
  • Connecting your organization with configurable product architectures that are documented and optimized with PALMA® software.
Here you’ll find the MB Collaborations blog, including additional topics related to modularization, configuration and how to accelerate value creation.

World's Leading Consultancy in Modularization and Configuration

Modular Management has its roots in Stockholm, Sweden, and is internationally recognized as market leader for the development and governance of modular and configurable product architectures.

Founded in 1996, the company has branches in Germany, Japan, Sweden and the United States, and has successfully completed more than 120 modularization and configuration projects in industries ranging from manufacturing, household appliances, transport, power, construction and telecom.

In addition to physical products, modularization is equally applicable to software and services. For example, Modular Management has experience in housing, including the configuration logic for interior design and service concepts for insurance, leasing and financing.

MB Collaborations has had contact with Modular Management for a long time and the collaboration agreement was formalized in December 2019. This means more clients in Germany can now access world-leading experience and expertise, including the 20 methods and 70 tools supported by PALMA® software.

Most executives are aware of the need for modularization. In practice, however, corporate strategy is often vaguely linked – if at all – to the products that drive results.

Markus Lotz, Dr.-Ing.
Managing Director, Modular Management Germany

Everything Needs to be Connected – Including Corporate Strategy, Products and Results

In response to the challenges and opportunities presented by globalization, most executives are aware of the need for modularization. In practice, however, corporate strategy is often vaguely linked – if at all – to the products that drive results.

While there are many instruments, tools and KPIs for governing corporate strategy, a strong link to product development programs is often missing. If the contribution of modular products to corporate strategy is unknown, control over modularization programs is limited and it’s hard to govern product development.

How can this be remedied?

In order to build a bridge between strategy, products and results, the strategic goals of an organization can be broken down into three axes: operational excellence, customer intimacy and product leadership.

First step is to assign strategic goals and KPIs to each axis.

Next, look at the contribution of a modular product architecture to strategic corporate goals and quantify this to ensure that your architecture is profitable.

More insight into strategic goals is available here.

Calculate the Potential of Modularization – Quantify Direct and Indirect Costs

For product development to be profitable, you have to calculate direct and indirect costs.

Theoreticians sometimes claim that the advantages of a modular system cannot be quantified or calculated, but this is not the case. In practice, calculation is both possible and necessary.

In addition to a well-founded method for calculating complexity costs, it takes an experienced hand to ensure that the expected benefits of a product architecture are realized.

The Modular Strategy and Potential Analysis (MASP™) has been developed and continuously improved by Modular Management since the 1990’s. MSAP reveals how you can save on direct and indirect costs, improve delivery times and increase sales in the specific context of your business.

Companies in German-speaking countries tend to focus more on cost. Improved modular products, however, also have significant positive effects in terms of sales. Top-line benefits are driven, for example, by new releases, more variants and improved time to market.

A detailed analysis provides the decision support needed for how to develop your product architecture; clarifying, for example, how many variants (including components) represent the optimum number for your modular system and your markets?

Without a stable analysis, you could end up with a technical and functional modular system that does not deliver the expected benefits.

So why is a lack of analysis relatively common?

Experience suggests that it’s usually due to a lack of transparency on what drives direct and complexity costs. For example, expected savings in new product development are often outweighed by added costs in manufacturing or maintenance. Before you embark on improving your product assortment, make sure all costs are visible.


What do Customers Really Care About? Real Customer Needs are a Prerequisite for Your Product Strategy

A clear product strategy is a prerequisite for the development of a successful modular product architecture, and this strategy should be built on customer-oriented market analysis and segmentation. You need to understand challenges, tasks, applications and functionalities from the customer’s point of view and adapt a solution-neutral approach.

There is an overhanging risk, however, that engineering companies with a proud history of technical development specify solutions that are not in line with real customer needs, and this restricts innovation.

Despite marketing organizations and product managers, market analysis is often demographic- or behavior-based. And because modular product development is based on strategy – not adaptations or range extensions – customer-oriented market segmentation becomes a key success factor.

It is virtually impossible to successfully position different product models/variants if you and your development department are unaware of which customer values drive buying decisions. Understanding key product properties per segment is also necessary to avoid the over-specification of components.

If you are on top of your market segments, customer values and product properties, a modular product architecture can meet customer needs and secure profitability.


Connect Your Organization with the Right Software

Modularization is a means, not a goal, and product architecture development can only be successful if it’s based on strategy and firmly anchored in your entire organization. To achieve this you have to work cross-functionally and use data to drive development.

A large amount of information is generated in modularization projects – data that connects strategic goals to customer needs to module variants and product configurations. Profitability simulations are particularly important before you develop solutions and success depends upon your data model being up to date. With a stable, shared and updated data model you can connect your organization, govern architectures over their lifecycle and secure profitability.

PALMA® supports all the phases of modular product development, including market segmentation and customer needs, interface definition and variant optimization. You can also align technical and sales configurators thanks to a consistent configuration logic and share the information model with all other IT systems. Thanks to tried and tested APIs, PALMA® seamlessly connects to PDM/PLM, ERP and CPQ systems.

PALMA® is cloud-based strategic software for the creation, documentation, configuration and governance of modular product architectures – and PALMA® supports you regardless of modularization approach.

Modular Management and MB Collaborations look forward to supporting your product architecture development in 2020.

Markus Lotz

PALMA® Software

This is the world-class solution for product management.

Standing for Product Assortment Lifecycle Management, PALMA is cloud-based strategic software to create, document and govern modular product architectures. With this unique structured approach you can design and document product architectures. You can also connect enterprise systems and secure business goals.

Built on an in-memory database platform, PALMA is faster and more capable than anything else on the market, so you can create configuration rules without coding, govern product architecture life cycles and create a business advantage.

Full Stack Developer

Full Stack Developer


Full Stack Developer

Curious to find out more?

PALMA® Software is a cloud-based solution to create, document and govern modular product architectures. This strategic software enables companies to take control of their product architecture, govern customization and secure business goals.

PALMA is built on an in-memory NewSQL database and integrated web server. A high level of performance is required for rich and proprietary product information models, and we use the latest web technology to enable top performance for the end user. PALMA is a SaaS solution.

You’ll be working as part of the development team in central Stockholm. Since we’re growing, you’ll have plenty of opportunity to learn and influence how things are done. If you’re interested in delivering quality software services – well designed for usability, maintainability and stability – we are too. We also believe in staying ahead of the competition through innovation and excellence on all levels. This includes how we define and implement services; and how we support each other as individuals and as a team.

Skills and Experience?

Are you a full stack developer, junior or senior? 

This position could well suit you if you’re curious about – and have skills in – C#, .NET, .NET Core, JavaScript, HTML5, Polymer, web components, D3.js, HTML5 canvas, WebGL, WebAssembly, Rust, backend and database technologies, AWS or similar relevant technologies.

How to Apply?

Please e-mail your complete application with a (i) short cover letter and (ii) condensed CV, preferably not more than one page each, to Please apply as soon as you can, because we’ll be interviewing candidates continuously, and just contact me with any questions.


Companies across the globe have worked with Modular Management to create and apply market-driven modular product platforms, in industries as varied as home appliances, industrial products, telecom, and construction equipment.

By implementing this approach, clients have achieved dramatic improvements in business performance through increased speed and efficiency, while simultaneously expanding the breadth of products offered to the market.

Using proven methods and PALMA®, a unique product architecture lifecycle management software, we partner with client resources to deploy a set of innovative tools and structured processes. Together we uncover and exploit the economic potential of product architecture that lies within markets, products, technologies, operations and support systems.

Modular Management was founded 1996 in Stockholm.


Jakob Åsell


Tusen tack


1000 LinkedIn Followers

Many thanks to all of you who follow Modular Management on LinkedIn

One thousand followers is a record for us.

We believe that configurable product architectures are key to bridging strategy and results. Not only do they create value for customers, they help companies solve many challenges, including how to speed up innovation, connect people, data and products, and reduce complexity. Something worth sharing.

Our goal with LinkedIn is to publish relevant material reasonably often, not least regarding who we are, what we do and why we do it. It’s also a key channel for recruiting senior consultants and young professionals from around the world. Don’t hesitate to email if you’re curious to find out more about what a career at Modular Management looks like. 

Above all, LinkedIn is a channel for us to learn from you. So one thousand thanks, or tusen tack as we say in Swedish.

Leif Östling

Leif Östling Joins the Board


Leif Östling Joins the Board

Leif Östling

Leif Östling has joined the Board of Modular Management.

His former positions include Chairman of the Confederation of Swedish Enterprise, CEO of Scania Trucks, Member of Volkswagen AG Board of Management and advisor to Toyota Material Handling Group. Leif also holds advisory positions at KTH Royal Institute of Technology and Morgan Stanley and is a Board Member at EQT, the Honorary Doctors’ Academy at Luleå University of Technology and Södertälje Science Park.

Leif Östling, Board Member, Modular Management Group

“This is an era of rapid change. Customers want individual, customized solutions and industry has to move from steel to sensors and services. We learnt at Scania that if you create and implement modular systems with standardized interfaces you can efficiently produce and configure products that meet unique customer demands. With modular digital systems you can harness data to satisfy customer needs and modularity gets your organization, products and customers working more closely together to drive development of your business model. Modular Management is a company that supports international clients do just this and I’m happy to be joining the Board.”

Karl-Johan Linghede, CEO, Modular Management Group

“We’re very pleased that Leif is joining our Board. Leif has extensive experience of leading international companies that utilize modular product architectures as a competitive advantage and this will further support the development of Modular Management. With his unique knowledge, industry insight, breadth and depth of experience and extensive network, Leif will provide great value for Modular Management and our clients.”

Modular Management in Brief

Based in Stockholm, Modular Management is a world leading consultancy in modularity and configuration. Thanks to modular product architectures, clients can increase productivity, speed up the delivery of new products and customize their offering all at the same time.

With 100+ successful cases in sectors including home appliances, transport, power supply, construction equipment and telecom, Modular Management is internationally regarded as market leader in modularity and configuration design.


New CEO for Modular Management


New CEO for Modular Management


Karl-Johan Linghede is the new CEO of Modular Management Group as of January 2018. Karl-Johan replaces company founder Alex von Yxkull, who becomes a working board member.

Modular Management, based in Stockholm, is a world-leading consulting firm in modularity and configuration.

Karl-Johan’s most recent position was Vice President and Head of Finance & Corporate Management at consulting firm Acando. He has extensive experience of driving and developing organizations with management consulting and effective digital solutions.

Prior to Acando, Karl-Johan worked at Scania with production development. His responsibilities included investments in production capacity, redefining productions flows and securing manufacturing for new products. He has also worked in USA and Canada for the family business in the concrete industry.

Modular Management in Brief

Modular Management is a world leading consultancy that makes the seemingly impossible possible. Thanks to modular product architectures, clients can increase productivity, speed up the delivery of new products and customize their offering all at the same time.

With more than 100 successful cases in sectors including home appliances, transport, power generation, construction equipment and telecom, Modular Management is internationally regarded as market leader within this field.

Karl-Johan Linghede, CEO, Modular Management Group:

“I’m really looking forward to getting to know Modular Management’s clients, international consultants and software team. We have unique know-how and the capacity to realize business value for our clients through modularization. And the track record to prove it. We now have the opportunity to accelerate service delivery and grow the advisory part of our business. At the same time we can take a position as a leading solution provider with PALMA®. This unique digital solution for product architecture data is built on a state-of-the-art platform that is faster and more capable than anything else available. I’m proud to join Modular Management and, together with my new colleagues, look forward to realizing the next steps in the growth of our company.”

Alex von Yxkull, Founder and Former CEO, Modular Management Group:

“As an investment in the future of Modular Management, the Board has been looking for a person that will strengthen our capabilities to grow. We’re therefore very excited to present Karl-Johan Linghede as new CEO. As for me, I’ll remain in the company as a working board member focusing on sales and partner relations.”