MIT Sloan Management Review

Marketing

Cracking the Code of Mass Customization

By Fabrizio Salvador, Pablo Martin de Holan and Frank Piller

April 1, 2009

Most companies can benefit from mass customization, yet few do. The key is to think of it as a process for aligning a business with its customers’ needs.

Photo: Courtesy of Mini Cooper

Photo: Courtesy of Mini Cooper

Mini Cooper customers can design the roofs of their vehicles by using an online tool kit. That software has enabled BMW to tap into the custom after-sales market.
The concept of mass customization makes sense. Why wouldn’t people want to be treated as individual customers, with products tailored to their specific needs? But mass customization has been trickier to implement than first anticipated, and many companies soured on the approach after a number of high-profile flops, including Levi Strauss & Co.’s failed attempt at manufacturing custom jeans. Now, executives tend to think of mass customization as a fascinating but impractical idea, the preserve of a small number of extreme cases, such as Dell Inc. in the PC market.

Our research suggests otherwise. Over the past decade, we have studied mass customization at a number of different organizations, including a survey of more than 200 manufacturing plants in eight countries. (See “About the Research.”) From that investigation, we found that mass customization is not some exotic approach with limited application. Instead, it is a strategic mechanism that... To read the complete article, login or sign-up using the form below.

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