Session 8 - Modularity and Integrality

Question 1

What is “modularity” according to Baldwin & Clark (1997)?

Managing in an Age of Modularity by Carliss Y. Baldwin and Kim B. Clark

Answer 1

Modularity is the concept of building a complex product or process from smaller subsystems (modules) that can be designed independently yet operate collectively as an integrated whole.

Question 2

What role did modularity play in the computer industry?

Managing in an Age of Modularity by Carliss Y. Baldwin and Kim B. Clark

Answer 2

Modularity allowed for an increased rate of innovation in the computer industry by enabling different companies to focus on developing separate modules or subsystems that could be integrated seamlessly into one system, exemplified by IBM’s System/360.

Question 3

What is the distinction between “visible” and “hidden” design information in a modular approach?

Managing in an Age of Modularity by Carliss Y. Baldwin and Kim B. Clark

Answer 3

Visible design information includes the essential design rules, interfaces, and standards all modules must adhere to, ensuring interoperability. Hidden design information is module-specific details that do not affect how modules interact and are internal to the design team.

Question 4

How can modularity impact competition in an industry?

Managing in an Age of Modularity by Carliss Y. Baldwin and Kim B. Clark

Answer 4

Modularity can level the playing field by allowing new entrants to specialize in producing individual compatible modules that can compete with established firms’ products. This was seen with competitors to IBM who produced modules compatible with the System/360.

Question 5

What are the key challenges of managing modularity in product design?

Managing in an Age of Modularity by Carliss Y. Baldwin and Kim B. Clark

Answer 5

Challenges include ensuring consistent communication of the visible design rules, managing a more complex supply chain and inventory, and fostering organization-wide knowledge sharing about module technology.

Question 6

How does modularity differ from traditional subcontracting?

Managing in an Age of Modularity by Carliss Y. Baldwin and Kim B. Clark

Answer 6

Modular suppliers have the freedom to innovate within their module as long as they adhere to the system’s visible design rules, whereas traditional subcontractors produce parts to specifications dictated by the primary manufacturer without much room for design variation or improvement.