Product modularity and the product life cycle: New dynamics in the interactions of product and process technologies

Peter Cebon, Melbourne Business School
Oscar Hauptman
Chander Shekhar, University of Melbourne

Abstract

Many aspects of product life cycle theory – which underlies the theories of technical innovation in economics, strategy, marketing, operations management and product development – are based on the implicit assumption that products are integrated wholes. We argue that the modularisation of products undermines specific synergies that are associated with integrated product designs and that have been characterised as driving the product life cycle. We suggest how this effect of modularity impacts the structure of organisations, the boundaries of industries and the structure of economies.