Modular v Architectural Innovation

Modular Innovation is where you maintain the architecture and modify the modules and vice versa. 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. e.g. Open Source v Windows
• 2. By developing modules you do not 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