The Power of Modularity in Business

Discover how a modular approach can bring about more opportunities and greater benefits for companies. Learn about the importance of having the right product development operating model and how a modularity steering committee can help address any challenges.

The Power of Modularity in Business

As an expert in business strategy and organizational design, I have seen firsthand the benefits of a modular approach in companies. A modular organization is a structure that breaks down employees into independent, interchangeable parts. This means that each individual has a specific role and can easily be reassigned to different areas within the organization as needed. Many companies have already embraced modularity or are making significant progress towards it. When implemented correctly, platforms and modularity can bring about more opportunities and greater benefits, rather than causing headaches and increased costs. However, for these promised benefits to be realized, it is crucial to have the right product development operating model in place.

This is where the modularity steering committee comes into play. Comprised of high-level members, this committee is responsible for approving any deviations from the standard as well as any changes to it. The person in charge of portfolio strategy, along with the person responsible for modular strategy, work together with those in charge of platforms and modules to ensure that this responsibility is carried out effectively. By implementing modular designs and product platform strategies, companies can expand their portfolio of offerings for customers. This includes creating specialized products at a reasonable cost and with less effort. To address any challenges that may arise from implementing modularity, companies can establish a new multifunctional organizational structure known as the modularity steering committee.

This committee is responsible for solving any issues related to modularity and ensuring the use of standard modules.

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