A modular system is a collection of building blocks that can be configured in different ways, adapting for different customer needs. Over time, some modules will be developed to serve new purposes or to improve performance in some aspect. Optimization and cost-cutting can be done within modules without the typical ripple effect throughout the product and, when done well, without reducing the value to customers. Many companies use modularization as a tool to create configurable product platforms, reducing product complexity and making the customer order process more efficient by configuring-to-order rather than engineering-to-order.

When done successfully, the benefits of using such a system are significant. Everyone who does work related to the products will benefit. The most obvious benefits lie within development, where engineers will design and maintain fewer components. We see such benefits throughout the value chain – from sales, through the supply chain and into the after-market.