Mass Customization

Apparel
Configured customization
-Shoes with choices of different colors for different elements
Individualized customization
-Shirts fit to body measurements or scans
Food
Configured customization
-Frozen yogurt with topping choices
Individualized customization
-Personalized foods based on nutritional needs
Consumer electronics
Configured customization
-Laptop with choice of color, hard drive
Individualized customization
-Individualized colors and graphics
Automotive
Configured customization
-Color and accessory choices
Individualized customization
-Individualized artwork or body panel shapes
Mass customization questions to be answered
Identify the product/service dimensions along which customer needs diverge
-Points of common uniqueness
Consider the value proposition from the customer’s perspective
-Traditional products designed for average requirements create customers “sacrifice gaps”
–Example: off the shelf shirt less satisfied with off the shelf
create the greatest customer-unique value at the lowest possible cost
Determine whether the necessary technologies and capabilities are available to customize while maintaining efficiency and quality
-IT, flexible production equipment
Mass customization
The production of personalized goods or services to meet individual consumers’ diverse needs at near mass production prices
-Mass producers identify and exploit commonalities across customer populations, while mass customizers focus on identifying areas where customer needs diverge
-Job shop = NOT MASS CUSTOMIZATION
Examples:
my m&m’s
NikeID
Indochino
LongChamp
Configured mass customization
Allow each shopper to customize the product service with a range of components offered by the producer
i.e: Dell Computers,
Key: producer makes the choices
Individualized mass customization
Building a unique product or service for each customer
true customization
Transparent
Provide unqiue products without letting the customer know
-Useful when customer doesn’t want to be bothered with makig choices
-Observe customer behavior without direct interaction and then customise the product within a standard package (done through observation)
i.e: hotel databases of customer preferences, automobile oil changes
*Change in product
Collaborative
Work directy with the customer to determine needs and choices
-Useful when customer has trouble articulating exactly what he wants
-Useful when there are too many choices or complex tradeoffs
i.e: eyeglasses, shoes
*Product and representation changed
Adaptive
Offer a standard, adjustable product designed so that customers can alter it themselves
-Needed when the customers’ demands span an enormous set of possibilities
0May allow customers to store preferred configurations for future use
i.e: seats in a car(adjustable, move forward and backward, up and down), adjustable mattresses
*No change in representation and product
Cosmetic
A standard product is presented differently to different customers
-Changes for customers could include packaging, marketing materials, purchase terms and conditions, product names
i.e: medicines (tylenol), packaged foods
*Change in representation
Elicitation
Get customers to tell exactly what they want
-Guide customers through a process to clearly articulate their needs
-Could use menus on the web, prototypes, or face-toface interaction
Process flexibility
Some dimensions or characteristics are harder to customize than others
-Advances in technology are making it easier
-In article: as add dimensions harder to customize
i.e: customized golf club is one dimensional customization
Logistics and order tracking
Customization may lead to additional processing and transportation tasks, as well as increased information needs within the process
-Info must flow with the product
New wave of mass customization
-A recent report from McKinsey & Company claims that individualised customization – building a unique product for each customer – appears to be within reach
Two keys:
-Identifying customization opportunities that create value for the customer and are supported by smooth, swift, and inexpensive transactions (look at gaps)
-Achieving a manageable cost structure and cost level for the produce as manufacturing complexity increases
Why individualized customization now?
7 technologies that make it practical and will drive further advances in the near future
Technological customization value for the consumer:
Social technologies
Online interactive product configurations
3-D scanning/modeling
Recommendation engines (“you might like these”on amazon)
Smart algorithms for dynamic pricing (amazon)
Control costs for the producer for technological customization
-Enterprise and production software
-Flexible production systems