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The phrase mass customisation
is credited to Stanley M. Davis who used the term in his 1987
book entitled "Future Perfect" (Addison-Wesley). He
devoted one chapter to the topic of mass customising, referring
to the phrase as an oxymoron (combination of seemingly opposite
and contradictory ideas). Mass customisation is one of several
oxymorons that have emerged over the past few decades. Another
more well know one is the notion of achieving both low costs
and high quality simultaneously. Davis' argument is that the
either/or logic of the past is giving way to newer models that
deal with the simultaneity of business opposites.
Although much of the mass customisation
literature is devoted to serving markets of one, in fact the
same concepts allow manufacturing companies to customise products
for niche markets and for market segments. Some of the techniques
are also relevant to large volume mass producers of standard
commodity items. Mass customisation can enable such manufacturers
to reduce inventory, stock holding and batch sizes, thus helping
to make them much more responsive to customer demand.
Following on from the above
point, the key to mass customisation lies in strategy. Specific
techniques from the mass customisation toolbox then follow, depending
upon the strategy. Unfortunately there is a tendency to start
with the toolbox and implement the techniques without first working
through the strategy. Those who adopt the latter approach should
understand that the techniques of mass customisation should not
be mistaken for a strategy. Whilst individual methods may yield
benefits, strategy is about positioning in the market place and
allocation of (scarce) resources. To apply mass customisation
techniques without first determining strategy may lead to missed
opportunities and sub-optimal returns. Ultimately this course
of action may also leave firms vulnerable to the actions of more
astute strategically driven competitors. |