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Mass Customization
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Many implementations of mass customization are operational today,
such as software-based product configurators that make it possible to
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add and/or change functionalities of a core product or to build fully
custom enclosures from scratch. This degree of mass customization,
however, has only seen limited adoption. If an enterprise's marketing
department offers individual products (atomic market fragmentation)
it doesn't often mean that a product is produced individually, but
rather that similar variants of the same mass-produced item are
available.
Companies that have succeeded with mass-customization business
models tend to supply purely electronic products. However, these are
not true "mass customizers" in the original sense, since they do not
offer an alternative to mass production of material goods.
Variants
Pine II (1992) described four types of mass customization:
Collaborative customization (also considered co-creation) - Firms talk
to individual customers to determine the precise product offering that
best serves the customer's needs (see personalized marketing and
personal marketing orientation). This information is then used to
specify and manufacture a product that suits that specific customer.
For example, some clothing companies will manufacture blue jeans to
fit an individual customer. This is also being taken into deeper
customization via 3D printing with companies like Shapeways.
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Examples: Tailored suits; Converse lets consumers chose the color or
pattern of every element of certain types of shoes, either in-store or
online.
Adaptive customization - Firms produce a standardized product, but
this product is customizable in the hands of the end-user (the
customers alter the product themselves). Example: Lutron lights,
which are programmable so that customers can easily customize the
aesthetic effect.
Transparent customization - Firms provide individual customers with
unique products, without explicitly telling them that the products are
customized. In this case there is a need to accurately assess customer
needs. Example: Google AdWords and AdSense
Cosmetic customization - Firms produce a standardized physical
product, but market it to different customers in unique ways.
Example: Soft Drink served in: A can, 1.25L bottle, 2L bottle.
He suggested a business model, "the 8.5-figure-path", a process going
from invention to mass production to continuous improvement to
mass customization and back to invention.