Transitions in Mass Customization Strategies – Requirements for Information Systems

1. Transitions in Mass Customization Strategies – Requirements for Information Systems Research sponsored by TEKES and MET Jaakko Riihimaa (Jaakko.Riihimaa@seamk.fi) Mikko Ruohonen (Mikko.Ruohonen@cs.uta.fi) Marko Mäkipää (Marko.Makipaa@cs.uta.fi) eBRF 2004

2. Objectives of the research • Analyzing the interdependency of e-Business and Mass Customization Strategies, and especially • In Transitions between different Mass Customization Strategies • 40 in-depth interviews in companies • circa 50-60 managers from different organizational levels, parts of Finland and positions in the value chain of metal and electronic industries

3. The original model of GILMORE AND PINE (1997) change PRODUCT no change no change REPRESENTATION change

4. The modified model of GILMORE AND PINE (1997) Modification to original framework: changing categories to dimensions

5. MC in Finnish metal and electronic industries

6. Cosmetic MC • Is not in particular focus in companies, but can have major effects in future when • using software components to customize the product • Intelligent appliances able to • record usage information • make fault-analysis • control over quality and quantity of production • Software seen as a component from Product Data Management viewpoint

7. Adaptive MC • Product Data Management in key position • Electronic document management commonly used in electronic industry • In metal industry both technical and operational coherency of product design has a lot to improve

8. Transparent MC • Collecting and analyzing customer knowledge through ERP-systems and from different service channels • Importance of services (spare part, maintenance and usability) is growing, development of own service competencies or partnering • e-Business important in services, like in after-sales function

9. Collaborative MC • very commonly used in SMEs • customer either head buying company or final end-customer • end-to-end visibility in supply chain important for head buying company • supporting the first phases of the customers’ lifecycle and educating about the product important for final end-customer

10. Transitions in MC strategies • Moving from one ’pure’ mass customization strategy to other

11. Transitions in MC strategies • Collaborative MC • is most expensive way • used widely in SMEs • Moving to Adaptive • requires investments to PDM-systems (and configuration tools) • Moving to transparent • requires investements to CRM-systems (and Knowledge Systems)

12. Transitions in MC strategies • Adaptive MC • Company ’Engines’ is using PDM, with 256 millions of possible product structures, with 10 years spare part service • recognizing the most popular and profitable components and product structures could be worthwhile to pursue • Moving to transparent • Integration of CRM- and PDM-systems together and so enable transparent customer relationship management

13. Transitions in MC strategies • Cosmetic MC • Can be used to learn from customers • To Adaptive • PDM • To Collaborative • Configuration tool • To Transparent • PDM + CRM

14. Transitions in MC strategies • Transparent MC • Require deep knowledge from customer • Transitions to other MCs • Identifying and selecting different kind of customer groups • Offering different services to different groups

15. Conclusions • All transitions might be relevant • Different strategies might be used to find best solution • Different solutions needed in different strategies • Flexibility of ICT needed • Thank You!!!