mass customization

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MASS CUSTOMIZATION

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Mass Customization

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Page 1: Mass Customization

MASS CUSTOMIZATION

Page 2: Mass Customization

WHAT IS MASS CUSTOMIZATION?New frontier in business competition for both manufacturing

and service industries

At its core is a tremendous increase in variety and customization without a corresponding increase in costs

At its limit, it is the mass production of individually customized goods and services

At its best, it provides strategic advantage and economic value

Effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network

Page 3: Mass Customization

ADVANTAGES

Mass customizers can customize products quickly for individual customers or for niche markets at better than mass production efficiency and speed.

Using the same principles, mass customizers can Build-to-Order both customized products and standard products without forecasts, inventory, or purchasing delays.

Page 4: Mass Customization

NICHE MARKETS

A relatively small and specialist, yet profitable, market

Not mass marketed. Marketed to a smaller group of consumers who share a specific need/desire that is not a universal consumer

expectation

Page 5: Mass Customization

A FEW SUCCESSFUL NICHE MARKETS

Page 6: Mass Customization

A FEW SUCCESSFUL NICHE MARKETS

Page 7: Mass Customization

A FEW SUCCESSFUL NICHE MARKETS

Page 8: Mass Customization

A PIONEER IN MASS CUSTOMIZATION

Dell assembles computers according to the specifications ordered by the customers

Uses collaborative approach and assembles computers to customer's exact specifications

Page 9: Mass Customization

Dell has recently become the number one maker of file servers in the U.S., as well as holding the number two position worldwide.

The production process from order to delivery is managed electronically, which allows Dell to build servers very efficiently and their customers to know where their server is during each step of the process.

A PIONEER IN MASS CUSTOMIZATION

Page 10: Mass Customization