Competence of the Modular Way

“Modularize, don’t customize. Build a platform as opposed to building all of the custom technology and custom vertical experiences.” - Aaron Levie

Efficiency, flexibility, and agility are critical success factors for today’s businesses. Modular systems are structures of modules enabling varied configurations of products. They facilitate efficiency by achieving economies of scale and help supply chains reap the benefits of long-term planning. An example would be a cooling fan in a battery system that can be used across all the product variants. Flexibility in these systems entails mass customization as per consumer needs. And, agility allows these systems for fast changes in terms of new technologies.

With the advent of Web 2.0, a whole gamut of agile possibilities has opened up when it comes to customization. As functionality increasingly transitions from hardware to software, modularity crossed company barriers. The core capabilities required for modularization involve processes to achieve efficient systems, digital solutions, and understanding the cost of complexity.

Businesses must understand how their modular platforms are supporting the strategy for the future. To achieve the same, it is important to align the present path, challenges, and vision, starting with a top-down approach in the company.

In the aftermath of the pandemic, companies want to know how their businesses will be placed in future markets. Navigating innovation processes and product strategy is critical to achieving preparedness. Modularization as a business strategy provides flexible product development to cope with uncertain markets. As Jeff Bezos said, “In today’s era of volatility, there is no other way but to re-invent. The only sustainable advantage you can have over others is agility, that’s it. Because nothing else is sustainable, everything else you create, somebody else will replicate.”