Set the Modular Strategy 

The first step in the analysis is to establish the baseline of the business and identify the current sources and impacts of operational and product structure complexity. The analysis begins by collecting data, including financial performance, process maps such as Order-to-Delivery and Product Development, organizational structure and roles as well as the current IT infrastructure.

In addition to collecting data, we interview stakeholders across key functions at multiple levels to understand the current state, guiding principles, activities and costs. We also conduct workshops to understand the existing product architecture and market opportunity. The findings are analyzed to determine the baseline for the benefits of modularity. Some gaps will suggest an approach for further study to identify what is needed to fully transform the company and capitalize on all the benefits.

Strategy sets the course for how your company will realize its vision and mission as it competes in its chosen markets with products produced by its resources. Objectives should guide the functions of your company to achieve this strategy.

Modular Management characterizes strategy within a three dimensional framework defined by Operational Excellence, Product Leadership, and Customer Intimacy. We take a holistic view of your operational, product, market and financial situation, and, together, we decide how modularity can best support and fulfill your strategic objectives.

These decisions drive the modular design of your product families to achieve strategic objectives, focusing on all three dimensions simultaneously. This will establish the product foundation to drive increases in sales, profitability and ultimately sustainable value creation.

The benefits of modularity come from both eliminating the costs driven by non-value added complexity and by capitalizing on the opportunities resulting from a less complex operation and more flexible product architecture.

A key element of the MSAP is estimating the Cost of Complexity. This concept is widely known and accepted, but its quantification and application in making business decisions are not broadly understood. Modular Management applies our methodology and extensive experience to examine your total costs: labor, materials, capital, SG&A, etc. We identify the proportion of those costs that are driven by the existing product architectures. Product families based upon modular design are inherently less complex so the benefit is proportional to the difference between the two.

Modularity also yields top-line benefits. The MSAP explores opportunities for revenue growth with faster time to market, reduced lead times and a broader range of differentiated products offered to the market.

We will work with you to set leading targets to achieve the right level of complexity and capitalize on the available market opportunities. These targets will drive your modularization program and calibrate the financial potential of modularity. Together with your team we will plan the program and identify the required resources.

The MSAP analysis of your company’s potential with modularity and the corresponding benefits is only the first step. Beyond Formulate, a full modularity program includes the phases of Create, Implement and Govern.