Mass customization is a marketing and manufacturing technique which combines the flexibility and personalization of custommade products with the low unit costs associated with mass. Those macro trends, laid out in a recent article by steve gillaspy of intel, include hyper growth and hyperscale, hyper density, new workloads, and new hardware. Mass customization is the tractability or flexibility to produce products in order to meet customer demands according to requirement and without sacrificing the low cost production process. Mass customization has been the next big thing in product strategy for a very long time. Mass customization refers to a business strategy that conciliates two different business practices, which are mass production and craft production. May 01, 2001 from mass production to mass customization at the beginning of the century, industrialized economies were on mass production, mass distribution, mass marketing and mass media. Mass customization as a solution for the service industry 5 052012 maarten ter harmsel preface this thesis is the conclusion of the master business administration i started in. Mass customization with intelligent, modular, and adaptive. To this end, the use of mass customization has been proposed as a solution. From mass production to mass customization at the beginning of the century, industrialized economies were on mass production, mass distribution, mass marketing and mass media.
The main challenges for coping mass customization in manufacturing are to achieve. Customized marketing solutions are useful for both customer acquisition and retention and can engender successful, longterm relationships. It is the concepts behind mass customization that will allow agents to move into a more effective advisory role. Mass customization expectations explode that cat egorization. Easing the transition to software mass customization. Balancing customer desires with operational reality. However, stateoftheart mass customization still has to face many challenges. The impact of information technology on mass customization. Industry examples are used in categorization of mass customization and corresponding technology is presented. Mass customization an overview sciencedirect topics. Our paper presents a conceptual framework that can potentially enable designers to. Pdf platform products development and supply chain.
Mass customization 2 the mass customization of marketing due to evolving etailing strategies since the introduction ofthe internet for commercial purposes in 1994, the business world has experienced increasing change. However, customization has often proven difficult due to implementation challenges, insufficient customer information and other factors. Mass customization as a solution for the service industry 5 052012 maarten ter harmsel preface this thesis is the conclusion of the master business administration i started in february 2010. The web makes mass customization eminently possible. Factors influence on success mass customization wai kwan lau university of north texas unt business administration bldg. Mass customization aims to deliver products and services that best meet individual customer s needs. To get started, manufacturers should consider current challenges, historical approaches and the potential benefits of a modern mass customization model. Dave gardner, fast company blogger and author of mass customization an enterprise wide business strategy, recently wrote an insightful blog post entitled mass customization vs customization. Such systems combine the low unit costs of mass production processes with the flexibility of individual customization mass customization is the new frontier in business for both manufacturing and service industries. Modularity of mobile communication devices, and advanced manufacturing management systems make the mobile industry. Social websites like facebook and tumblr operate on mass customization principles, as does squarespace, for example, which helps you create your own website. For manufacturers who decide that its time to take the plunge, the author describes the proven methods and latest technologies for making mass. May 23, 2019 mass customization is a marketing and manufacturing technique which combines the flexibility and personalization of custommade products with the low unit costs associated with mass production. Mass customization is the application of technology and new management methods to provide product variety and customization through flexibility and quick responsiveness at prices comparable to.
With the technological advances of manufacturing, information technology, communication, and product design, higher levels of mass customization can be realized. One of the challenges of mass customization is ensuring it doesnt impede upon supply chain operations. Each of the four customization approaches used alone challenges the mass production paradigm of offering standard goods or services to all customers. Depending on the level, different customer involvement and enabling technology options are used to facilitate mass customization. Mass customization refers to a business strategy that conciliates two different business. Solved mass customization and rapid product development. Customization vs mass customization treehouselogics blog. Mass customization as a solution for the service industry final. Read service research challenges and solutions for the. Ifip aict 440 motivations and challenges for engineerto.
If the inline pdf is not rendering correctly, you can download the pdf file here. Why wouldnt people want to be treated as individual customers, with products tailored to their specific needs. Mass customization is an important business concept, which numerous brands are adopting these days. Collaborative customization replaces such backend solutions with frontend specifications. Mass customization in prefabricated building construction industry is a new strong tool based on integrating organizational structure over the whole value chain corre sponding with information flows between enterprises product, machinery, robots, customer and all complementary sub. Mass production implies uniform products, whereas customization connotes smallscale crafts. Mass customization mc is a business practice that aims to provide customers with customized products and services at near mass production efficiency. The publication by joseph pine of his book mass customization. In fact, there are many approaches in order to implement mass customization. While the strategy of mass customization has been present in marketing for many years, e. Rapid product development is used as a source of competitive advantage. Mass customization opportunities, methods, and challenges. Implementing mass customization also provides challenges for established companies.
It aims to provide customers with individualized products at near mass production efficiency. Request pdf on jan 1, 2006, thorsten blecker and others published mass customization. For manufacturers who decide that its time to take the plunge, the author describes the proven. Find out all there is to know about the challenges and opportunities posed by future production. It is considered that, client integration is an important principle of mass customization compared to mass production, and that, over time, systems of mass customization will be successful only if they can adequately manage the balance between the benefits and client integration costs in the production process piller et al. The key is to think of it as a process for aligning an organization with its customers needs. We find that mass customization in combination with the involvement of active and responsible customers bear the potential to lower co2emissions. The mass customization of marketing due to evolving e. Personalized needs elicitation in webbased configuration systems. Handcrafting is not feasible on a large scale, and mass customization requires a fundamental rethinking of. Today i define mass customization as the lowcost, highvolume, efficient production of individually customized offerings. Benefits and challenges of mass customization for customers.
The book will cover the main categories of the area with a systematic examination of the following themes. It is mass customization that allows us to provide individualized and unique products tailored to the specific needs of individual insureds. Modelbased configuration support for software product families. Cracking the code of mass customization most companies can benefit from mass customization. Challenges of implementing mass customization for established companies. Mass customization is finally the future of products. Mass customization, personalization, key metrics, customer service, human resource management, product platform, modularity, delayed product differentiation created date. Mass customisation versus mass production in investment. Mass customisation versus mass production in investment management. The concept of masscustomization was first introduced in the book future shock some three decades ago. Customization as mentioned above, customization on the product end manifests itself through mass customization, lot size 1, etc. The tension between the potential benefits and imposing challenges of software mass customization is often manifest in the interactions between marketing and engineering groups in a company.
However, certain specific effects of the customization process may lead to significant emissions and must not be neglected. The secondary readership is supply chain managers and executives. The moderating effects based on resource dependence theory. Customization embodies the concept of high complexity and this drives the design of manufacturing systems capable of delivering mass customized products. How technology can drive the next wave of mass customization 5 provide a userfriendly and speedy way to gather a consumers customization prefer ences. Joseph pine, who made mass customization popular with his 1993 book. The concept of mass customization was first introduced in the book future shock some three decades ago. Biggest challenges of mass customization and tips for.
Today, integrated lnternetbased solutions can enable mass customization and. Engineertoorder eto, mass customization mc, motivations and challenges, product configuration. Mass customization approaches mass customization is not a pure but a hybrid manufacturing concept, which joins the efficiency of operations and differentiation by providing highly value added products. Mass customization means to offer products or services which meet the demands of each individual customer, but which still can be produced and delivered with mass production efficiency. The i designed it myself effect in mass customization. Mass customization mass customization means to offer products or services which meet the demands of each individual customer, but which still can be produced and delivered with mass production efficiency. The development of production management concepts in. A new whitepaper from server technology focuses on four of the top challenges today faced by those responsible for designing, operating, and sustaining the it and physical support infrastructure found in todays data centers. Introduction with more flexibility in technology, more segments in global markets and higher expectation of users, mass manufacturing is going to be replaced with mass customization. Challenges and solutions for marketing in a digital era new peter s. Thus there are two challenges to mass customization.
However, a combination of advances in information and technology is making it increasingly possible to mass customize to rapidly respond to consumers with. I define mass customization as the ability to produce a single, customized product with the same efficiency as a mass. Opportunities, methods, and challenges for manufacturers is the executives, managers, and board members of manufacturing companies who are considering whether and how to undertake mass customization projects. Challenges and solutions defines the parameters of the emerging business strategy, mass customization. Moreover, the concept is also utilized in the development of marketing strategies for product and service lines and during the process of recognizing the target audience of a brand or business. However, a combination of advances in information and technology is making it increasingly possible to masscustomize to rapidly respond to consumers with. While online configurators have been around for years, user interaction in the past was limited to selecting a few configuration options in a form. Internet usage continues to explode across the world with digital becoming an increasingly. Mass customization examines the business opportunities, considerations, and challenges manufacturers in various industries must weigh before committing to the significant investment in machinery and software needed to go to mass customization. This article studies practical challenges experienced by ict information and communication technology companies when managing product configuration under the circumstances of various customer requirements, different product portfolios, and extensive product complexity. The goal of mass customization is to achieve choice at a low cost through the use of technology. Mass customization challenges and solutions thorsten.
Technology solutions for your business mass customization. In clothing, mass customization can be applied at several specific levels or at multiple levels in the production process, as indicated in table 8. Nov 05, 2012 mass customization economics huffman 1998 theres a thin line between mass customization and mass confusion piller et al. We identify the external complexity and internal complexity as the main problems that may jeopardize the. Mass customization, in marketing, manufacturing, call centres and management, is the use of flexible computeraided manufacturing systems to produce custom output. Over the last 15 years or so, the investment industry has experienced a series of profound structural changes, and an increasing number of serious new challenges are being faced by both institutional and individual investors as a result of these changes. Challenges and solutions international series in operations research. Pdf mass customization refers to a business strategy that conciliates two different business practices, which are mass production and craft. Marketing, in particular, is being heavily affected by the opportunities and challenges that the internet presents. Mass customization as a solution for the service industry.
Goals and budgets are set at the top of the organization and cascaded down, yet plans on how to reach the. The main purpose of such a strategy is to combine the low unit costs of a mass production process with the flexibility. Challenges and critical successful factors for apparel mass customization operations. Mass customization mc, within the marketing, manufacturing, and management contexts of an organization, is the use of flexible, computeraided manufacturing systems to produce custom outputs in a mass production environment. If mass customization creates opportunities and challenges for economies and large companies, it creates analogous challenges in more abstract realms, like design. Todays customers are not willing to settle for standard products, and smart manufacturers know that offering customized solutions is the way to win customer loyalty and outdo the competition. The challenge for modern manufacturers demand for configurability and personalization is growing in the marketplace and presents a threat to traditional mass production techniques. Mass customization of printed garments will require the use of digital printing technology even though the reverse is not true. By customizing products and services we combat the idea that certain products are commodities. To keep up with its market for premium products, which had been evolving towards greater. Important books from 1992 and 2000 further promoted the idea that mass customization was the future of products yet for years, mass customization has disappointed. The phrase mass customization is striking, for it seems a contradiction in terms.
Companies throughout the world have embraced mass customization in an attempt to. Both methods rely on quickness within the organization. How technology can drive the next wave of mass customization. Challenges rising prices of raw material some customers still prefer to take some out a dealers lot directly even though 12 days is pretty impressive, customers still want lesser delivery time us laws has not yet allowed mass customization to be standard procedure in the us, laws allow the customer to call of a deal before the. Such systems combine the low unit costs of mass production processes with the flexibility of individual customization. Take, for instance, john deere, one of the worlds largest manufacturers of garden equipment.