Managerial issues in modularising complex products

Modularisation is an increasingly common strategy for many companies. However, present literature is lacking in two respects. First, it tends to focus on the positive effects of modularisation, disregarding any problems during the modularisation process. Second, it is mostly based on rather simple products. We identify managerial issues in modularising complex products. Through a 4-year in-depth case study at Volvo Car Corporation, we uncovered a number of problems that needed to be dealt with. We synthesise these into three major issues, which need management attention to be resolved.