Mass Customization - The Development Of Mass Customization

THE DEVELOPMENT OF MASS CUSTOMIZATION

One of the first companies to dive into mass customization was Dell Computer in the mid-1980s. The company allowed customers to pick and choose specifications, including design, computer power, and software, from a predetermined list of available options, after which the components, some already pre-assembled, would be assembled to build the finished product.

The Internet, however, ultimately proved the greatest means toward mass customization for a number of reasons. First, the Internet dramatically enhanced the ability of companies to compile detailed information on individual customers and create comprehensive customer profiles. These profiles enabled firms to reach customers with a degree of customization already in hand and provided an avenue toward appealing to the customer for greater customization. Relatedly, the Internet provides customers with a mechanism for easy, personalized communication with companies. Finally, the Internet and related IT systems afford companies the ability to integrate their customer-profiling, customer-outreach, order-handling, and inventory-control systems more or less seamlessly, thereby minimizing costs and speeding the entire process. Manufacturers and managers can respond quickly to shifting order needs through the use of computerized systems, and customer-relationship agents can rapidly receive orders and attend to customer concerns while feeding the information along to other parts of the organization.

Enthusiasts of mass customization point out that it gives special advantages to smaller customers and helps level the playing field. Where once customization was confined more or less to high-value customers, it is now available to a much wider audience. And mass customization isn't simply a business-to-consumer phenomenon; it is also increasingly popular in business-to-business transactions.