V08 Mudularity and integrality
Key Concepts: - Modularity, Integrality - Product architecture, systems integration Abilities: - critical assessment of different product design strategies - Identify links between product design and strategy
Key Concepts: - Modularity, Integrality - Product architecture, systems integration Abilities: - critical assessment of different product design strategies - Identify links between product design and strategy
Set of flashcards Details
| Flashcards | 11 |
|---|---|
| Language | Deutsch |
| Category | Micro-Economics |
| Level | University |
| Created / Updated | 05.01.2020 / 13.01.2020 |
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What types of innovation do exist?
Why is it that incumbents fail to introduce architectural innovations?
Architectural innovations destroy the usefulness of the architectural knowledge of established firms.
- The architacutre tends to become embedded in the organisazional structure (organisazional process)
- The architecture tends to become embeded in information structure (communication channels and information filters)
Therefore, this destruction is difficult for firms to recognize and hard to correc.
Define a vertical integrated company and a horizontal integrated company
Vertical integration:
Arrangement of the company in the supply chain, which produces a specific product is owned by that comany itself.
Horizontal integration:
Process of a company increasing production of goods or serveces at the same part of the supply chain.
Name 4 examples for architectural innovation in the photolithographic alignment industry.
- Proximity aligner
- Scanning projection
- First-generation stepper
- Second-generation stepper
Modularity and plattforms makes the horizontal integration possible. Define the term "modularity" and name 3 types of plattforms incl. Examples in the computer industry.
Modularity:
Functional core and interchangeable periphery or ecosystem (components). -> can be mixed and matched in a variety of configurations. Two elements:
- One to one mapping btw. components and functions (only one function for each component)
- Standardized interfaces
Forward open: Plattforms with downstream complementors (Intel)
Backward open: Modular supply networks (Dell)
Open Exchange Plattform: Transactions and other forms of social interaction. (???)
Define embedded coordination.
Products design organisations defining an information structure that holds the organisation together without need for explicit managerial authority.
Describe the dynamics of product and industry structure (interdependencies between modularit and integrality).
Descibe the interdependencies of architacural structure and architecural proprietariness.
Name the general advantages and disadvantages of a modular design.
Pros:
- Increase flexibility (decreasing bottleneck effect)
- Increase rates of innovation by introducing diversity and competition
- Increase options for diversified customer needs and make it more robust.
- Keep up with rapid development of products (e.g. semiconductors) when own company has lack of capital and lack of capabilities.
- Increases value of the system
Cons:
- Decreased integrity -> less performance
- Very costly architecture -> organisational change
- Suppliers may gain power
- Speed of search vs. breadth of search (exploration vs. expliotation)
- Cross module dependencies can lead to system failure -> value of modularity has to be weighted
Name 3 Types of Modularities with an example and advantage.
- Modularity in products
- Advantage: Leverage customers’ and users’ skills
- Example: PC's or Smartphones
- Modularity in design
- Advantage: Design variety of products using similar set of components, parallel decentralized developments
- Example: Chemical processes or chip design and software
- Modularity in production
- Advantage: Global outsourcing
- Example: Automotive or construction
Show at the example of Tesla the trade off between product integrality, architecture.
- Tesla is good in developing the components (Battery, motors usw)
- ...but the system architecture is poor -> too many parts, complexity lead to very inefficient production process.
This shows the trade-off between intetrality (efficiency) and modularity (flexibility).
"New products start integral, later become better decomposable."
