The Customer Centric Enterprise: Advances in Mass Customization and Personalization

Mitchell M. Tseng and Frank T. Piller

Part IV:    	Interfacing and Integrating the Customer

Getting customers involved and optimally informed

The essence of customization is to provide only and exactly what each customer wants at the right time. The process necessary to reach this objective is the configuration process. Configuration means to transfer customers' wishes into concrete product specifications. While the basic product families, common product platforms and the corresponding manufacturing systems are set up when building a mass customization system, configuration activities take place with every single customer's order. For each order, the individual wishes and needs of a client have to be transformed into a unique product specification. The additional costs arising from the customization process consist largely of information costs in the sales. They are accounted for by the investigation and specification of the customers' wishes, the configuration of corresponding individual products, and the transfer of the specifications to manufacturing. All theses activities are characterized by a high information intensity compared to traditional mass production. An important characteristic of successful customer centric companies is the use of dedicated information systems to capture these additional costs. Called configurator, choice board, design system, tool-kit, or co-design-platform, these systems are responsible for guiding the user through the configuration process. Different variations are represented, visualized, assessed and priced by these systems, enabling the customer to interact closely with the firm's capabilities. While configuration systems theoretically do not have be based on software, all known mass customizers are using a system that is, at least to some extent, IT based. Configuration systems can also include physical measurement tools like 3D-scanners or visualization tools like 3D screens.

Part IV comprises of the discussion of configuration methodologies and modes for customer interaction. The development and implementation of appropriate systems for customer interaction is an important success factor of mass customization - and a field with many open questions (see also Chapter 30 of this book). The papers in this part should help to answer some of these questions. In Chapter 13 Khalid and Helander provide an introduction into web-based do-it-yourself product design (DIYD), as installed on many mass customization web sites. DIYD is defined as the selection and configuration of products by customers on their own. However, information about customer needs is usually incomplete, making it difficult to develop a configuration system both in terms of the set of options presented there and the corresponding user interface. Often, customer needs have to be estimated from population preferences or global market diversities. Of particular interest in this context is an investigation into appropriate procedures for customer design conceptualized in different cultures. The objective is to improve the usability of configuration web sites by addressing these differences. How consumers behave in such an environment is discussed by Kurniawan, Tseng and So in Chapter 14. Choosing, matching, and swapping components and configuration options and assembling them together to a specific product instead of choosing a ready-made product from a shelf is a totally new way of acquiring products for many consumers. Thus, the authors hypothesize that this may change known patterns of consumer behavior greatly. The authors present a new approach to understanding consumer behavior using the living system theory. While (traditional) marketing models rooted in psychological research assume that information (during the choice process) is evaluated by customers using symbolic processing, the living system theory explains customer behavior as a collection of components. Thus, a new way is offered in this chapter to better understand the essence of being customer centric: the customer.

Bee and Khalid extend this discussion with an empirical study evaluating three DIYD web sites in Chapter 15. Using factor analysis, three generic factors are extracted as important features from a customer's perspective, namely holistic design, navigability, and timeliness. Users seem to prefer a top-down hierarchical approach when designing the sample products (bicycles, watches, and dresses). The study also evaluated success factors for the corresponding design of the configuration system: design procedures, aesthetic preferences, information display, and design pleasure. The design and development of configuration systems corresponding to the needs of (potential) customers is also the topic of Chapter 16 by Porcar, Such, Alcantara, Garcia and Page. However, the authors follow quite a different approach and show how consumer expectations can be captured by the Kansei Engineering methodology. The chapter demonstrates how Kansei Engineering can be used to guide (inexperienced) customers in order to quickly find the desired design according to their preferences. This approach may also help manufacturers in cutting down a wide variety of options in manufacturing among which a large percentage does often meet not the preferences of the target group. Focusing production variability on features affecting most users' purchasing decisions may reduce the amount of design options offered, and may thus result in an important contribution to controlling costs and reaching near mass production efficiency in manufacturing.

Hvam and Malis extend the discussion on how to develop and design efficient and effective configuration systems. In Chapter 17 the authors present a documentation tool for configuration processes to foster knowledge based product configuration. Mass customization and similar approaches to create more customer centric product architectures led to an enormous extent of variety and complexity. This calls for an effective documentation system in order to structure this knowledge. Standard configuration systems do not support this kind of documentation. The authors sketch a rather simple application that serves as a knowledge based documentation tool for configuration projects. Their objective is to document complex product models in a way which considers both the development and the maintenance of the products. Part IV concludes with an important plea by Svensson and Jensen that the customer should always be at the final frontier of mass customization (Chapter 18). The authors show that despite all technological advances and approaches - such as the ones presented in the previous chapters - the central limiting factor in the expansion of mass customization will be the customer. Often, mass customization has mainly been turned towards product and processes. The authors argue that customers have to come fist. This is an important point that should never be forgotten when designing a customer centric enterprise.

 

Abstract from the book:

The Customer Centric Enterprise: Advances in Mass Customization and Personalization
Mitchell M. Tseng and Frank T. Piller

 

  Springer 2003
ca. 535 p. 168 illus.
ISBN 3-540-02492-1
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