Managerial Issues in Modularizing Complex Products

Paper in proceeding, 2004

Modularisation is an increasingly common strategy for many companies. However, present literature is lacking in two respects. First, it tends to focus on the positive effects of modularisation, disregarding any problems during the modularisation process. Second, it is mostly based on rather simple products, like desks and computers. We identify managerial issues in modularising complex products. Through a four-year in-depth case study at Volvo Car Corporation, we uncovered a number of issues that needed to be dealt with. We synthesise these into three major issues, which needed management attention to be resolved. Managerial implications of our research follows.