Modular v Architectural Innovation

Modular Innovation is where you maintain the architecture and modifies the modules and VV. For instance adding more interfaces to a PC

Some issues to consider 1. By creating incompatibilities you develop lock in features and generate high switching costs like IP Telephony. This can generates profits but inhibit innovation Open Source v Windows 2. By developing modules you dont have to change the underlying architecture. It just slots in and connects 3. Modular systems shorten PLC see Life Cycle Model because the modules can be repaced much more easily 4. It stimulates specialization 5. Increases scale and differentiation