Increase efficiency, reduce complexity, increase flexibility

In an increasingly dynamic business world, companies need to optimise their product development processes in order to respond to the market faster and more cost-effectively. A well thought-out platform and module strategy offers the key to more flexibility, more variance externally with reduced complexity internally and considerable cost savings. CO Improve supports you in developing and successfully implementing the right strategy for your company.

Platform vs. modular system

Architectures, platforms and modules are central concepts for product development that complement each other but have different focuses. A platform serves as the basis for different product variants and provides a common, usually physical, framework on which different modules can be built. Modules or component kits, on the other hand, are independent, interchangeable units that can be flexibly integrated into different platforms. Architectures go further than platforms. Standardisation is reduced to a few technical dimensions. This means that modules can be used and the design freedom is significantly greater than with physical platforms. All three approaches are aimed at standardisation and flexibility, but the platform focuses on the overarching structure, while modules enable the functional adaptability of individual components.

FIG. 1 Platform- and modul strategy
Figure: Brief overview of platform/architecture development and modularisation

Why an architecture, platform and module strategy?

The decision to standardise on the product side is a significant investment in the future of your company. It affects not only the technical development, but also your strategy, processes and organisation. All areas must work closely together to realise the maximum benefit. This change is cross-functional and requires the full commitment of the company management.

FIG. 2 Platform- and modul strategy
Figure: Various challenges may indicate that a modularisation and standardisation strategy makes sense

Advantages of modularisation

  • More variants: With a well thought-out product architecture and a well-equipped module and component construction kit, more variants can be offered to customers.
  • Reduced complexity: The division into standardised modules also reduces internal complexity for development, purchasing, production, quality management and service
  • Reduction of development costs: Modules can be reused and utilised across product variants, which reduces development and production costs.
  • Faster time-to-market: The parallel development of modules significantly reduces the time-to-market.
  • Future viability: New functions or product variants can be easily integrated by adding or exchanging modules.
  • Economies of scale: By sharing many modules and components across different models and brands, larger quantities can be produced, reducing production costs per unit.
  • Synergies in purchasing: By bundling orders for the same or similar components, better conditions can be negotiated with suppliers, which reduces material costs.

Success factors

The success of an architecture, platform and module strategy depends to a large extent on several decisive factors:

  • Cross-functional collaboration: The implementation affects all areas of the company - from development and purchasing to production and sales. These departments must work closely together to ensure a successful implementation.
  • Holistic approach: The platform and module strategy affects strategy, processes and organisation in equal measure. Only a harmonised interaction of these areas will lead to success.
  • Management commitment: Without the support of top management, the implementation of such a comprehensive strategy will not be successful.
  • Standardisation and interfaces: A key success factor is the definition of standards and interfaces that ensure smooth integration of the modules.
  • Long-term planning: The benefits of the platform and module strategy unfold over time and require forward planning and a strong governance model.

Motivation and proven successes

Leading companies around the world are turning to platform and modular strategies to increase their efficiency and competitiveness. These examples illustrate the potential:

  • Volkswagen reduced production costs and shortened development times by an estimated 20% thanks to the modular transverse matrix (MQB)
  • Apple uses key components such as processors and cameras on a modular basis across several iPhone models, which accelerates customisation and innovation.
  • Siemens was able to reduce engineering times by up to 30% and operating costs by 15% by introducing the Totally Integrated Automation (TIA) platform.

These success stories illustrate how a platform and modular strategy can lead to cost reductions, faster development cycles and greater flexibility.

Our approach

CO Improve takes a systematic and holistic approach to implementing the platform and module strategy. The actual implementation is divided into three central steps:

  1. module definition and interface definition: The first step consists of precisely defining the architecture, platforms and module structure as well as defining clear interfaces between the modules. This creates the basis for efficient development and integration of the modules. It is important to note that the three levels of architecture, platform and modules are not necessarily always required. However, the full potential of product standardisation is only possible via the three levels.
  2. development and documentation of the modules in the module book: Once the module structure has been defined, each individual module or the corresponding modular system is developed. The central tool here is the module book, in which all essential information about a module is recorded - from specifications and interfaces to life cycle and supplier strategies. It also describes the modular system with its specific characteristics and variants. The module book serves as binding documentation and reference for all further steps.
FIG. 3 Platform- and modul strategy
Figure: All key findings from analysing and detailing the directions of impact are documented in the module book and are binding
  1. elaboration of module roadmaps
  2. designing and introducing a module development process between pre-development and PEP
  3. mapping module responsibility in the organisational structure of development: product responsibility, module responsibility, domain responsibility

Establishing control and governance

Successful modularisation requires stable control and clear governance structures. These ensure that the modules are integrated smoothly and that compliance with standards is guaranteed throughout the entire life cycle. This is where management plays a decisive role in ensuring the success of the process.

Adjustment of strategy and organisation

In addition to module and platform development, it is crucial that the strategy work is adapted. This includes decoupling and combining product and module portfolios in order to increase flexibility and efficiency. In addition, adjustments need to be made to the organisation, particularly in the areas of development, purchasing and product management. These must be more closely aligned with the new modular structures in order to realise the full impact of the platform strategy.

FIG 4. Platform- and modul strategy
Figure: A modularisation concept affects the company as a whole

Rely on CO Improve

With our many years of experience in the development and implementation of platform and module strategies, we make your company fit for the future. Our approach combines strategy, processes and organisation and ensures that all areas of your company are optimally aligned. Together, we create the basis for more efficient, flexible and cost-effective product development.

Contact us for a no-obligation consultation and find out how CO Improve can help you on your way to successful modularisation.

Arrange a non-binding consultation appointment here

Your benefit

  • Increased efficiency and cost reduction: A well thought-out platform and module strategy reduces complexity and lowers development and production costs, enabling a faster time to market
  • Flexibility through modularisation: Companies can offer more product variants by reusing standardised modules and easily adapting them to new requirements
  • Economies of scale and synergies: Larger quantities and better purchasing conditions through the joint use of modules and components reduce the cost per unit and improve the negotiating position with suppliers.
  • Long-term future-proofing: A modular strategy makes it possible to integrate new functions and product variants quickly, increasing the company's adaptability to changing market requirements
  • Holistic consulting and implementation: CO Improve offers comprehensive consulting from the definition of the module structure and technical implementation to training and governance to ensure the long-term success of modularisation