Modularity in the design of complex engineering systems
By: Carliss Y. Baldwin, Kim B. Clark
Contributors: Clark, Kim B.; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 04-055; Working paper (Harvard Business School. Division of Research) -- 04-055
Publisher: Division of Research, Harvard Business School
Published: 2004
Place of publication: Boston
Language: eng
Number of pages: 35
Description: This paper summarizes and extends the arguments set forth in our book, Design Rules, Volume 1, The Power of Modularity. We first present evidence to show that modularity is a financial force, which can change the structure of an industry. The economic power of modularity lies in two fundamental properties: first, modularity creates options; and second, modular designs can evolve at low cost and without central control. We explore the value and costs that are associated with constructing and exploiting a modular design, and then examine the risks that modularity poses for individual firms.
Notes: "January, 2004"--Added t.p.

Includes bibliographical references.