Management and Strategic Product Architecture

Shortened development times, intensifying demands to be cost effective, increased market segmentation and a mounting wave of technological advances. These are but a few of the challenges representatives of Danish industry must meet if they are to stay competitive in today?s market. Companies are pressured on the one hand to be innovative and on the other hand to remain effective. Customers want more variants and more bells and whistles, all at a cheaper price. In short, there is a great need for product innovation and product adaptation to customer needs. This is where the implementation of standardization in product architecture comes in. One possible solution to the challenges named above is for the company to take advantage of aspects of product architecture to innovate and customize products more effectively. This project addresses both barriers to and important elements in the innovation process relevant to the implementation of this concept in an organization. However, it is no easy matter for companies to innovate via standardized product architecture. First, there are a number of fundamental barriers that must be overcome if standardization is to be integrated into strategic product architecture. Second, this kind of innovation makes a series of new demands of a company?s managerial capacity. Processes connected to product architecture and to product development in general must be systematized so that each person in the organization understands the nature of this innovative business activity and realizes what role they play in it. This project focuses on documenting how Crisplant A/S, the case company involved with this project, might introduce and apply theories related to strategic product architecture as a means of transforming its approach to product development. CIP project group: Agnar Gudmundsson (Ph.D. Researcher), Associate Professor Anders Drejer (primary advisor), Associate Professor Poul Kyvsgård Hansen (associate advisor) External partners: Crisplant A/S is the case company for the project Project duration: fall 1999 ? summer 2003