The Influence of Digital Design and <scp>IT</scp> on Modular Product Architecture

TLDR

Product architecture defines subsystems, components, and interfaces, and well‑defined interfaces enable standardized, reusable components that reduce cost and shorten development cycles. This study explores the impact of digital design and information technology on the development of modular product architectures. An empirical survey of 122 firms and follow‑up interviews examined how digital design tools and IT infrastructure influence modular architecture and project outcomes. Results show that IT infrastructure strongly predicts modular architecture, which in turn improves project outcomes, but digital design tool use is not significantly related to architecture or outcomes, indicating a need for better implementation.

Abstract

The architecture of a product is the design and specification of inherent subsystems, components, and interfaces between subsystems. Well‐defined interfaces allow the development of standardized subsystems that may be shared across product lines, e.g., technology platforms. Past research shows the benefits of modular product architecture in terms of improving cost of goods through common components and materials as well as improving development time cycles for derivative products. Product architecture does not occur by accident; it must be engineered and implemented. This study explores the impact of digital design and information technology ( IT ) on the development of modular product architectures. Through an empirical study of 122 firms and follow‐up interviews with several respondents, we study the impact of digital design tools and IT infrastructure on the development of modular product architecture and overall project outcomes. The results indicate that a firm's IT infrastructure has a strong, significant relationship with the development of modular product architecture. The findings also show a strong, positive relationship between the development of modular product architecture and project outcomes. However, in contrast to the common perception that digital design tools enhance R&amp;D productivity and effectiveness, we do not find a significant relationship between digital design tool usage and modular product architecture or overall project outcomes. The findings suggest that digital design tools and their organizational implementation need improvement in up‐front new product development phases.