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The mass production of standardized goods
was the source of America's economic strength for generations.
But in today's turbulent business environment mass production
no longer works; in fact, it has become a major cause of
the nation's declining competitiveness. As Joseph Pine makes
clear, the most innovative companies are rapidly embracing
a new paradigm of management -- mass customization -- that
allows them the freedom to create greater variety and individuality
in their products and services at desirable prices.
New ways of managing, together with new
technology, enable savvy businesses to provide each customer
with the attractive "tailor-made" benefits of
the pre-industrial craft system at the low costs of modern
mass production. Companies that have discovered and successfully
implemented mass customization are swiftly outpacing their
competitors in gaining new customers and achieving higher
margins. Among the firms that are leading their industries
to this new frontier are McGraw-Hill, which can deliver
custom-made classroom textbooks in quantities under 100
copies; Motorola, which can manufacture any one of 29 million
variations of pagers within twenty minutes after receipt
of order; and TWA Getaway Vacations, which offers custom-designed
tours at the same price that others charge for standardized
group tour packages.
Pine explains mass customization in its
historical context. He reviews the history of production
in America, demonstrates why mass production cannot work
in industries experiencing upheaval, and outlines how new
forms of competition have led to greater variety and customization.
Based upon academic and field research, his work is a thoughtful
analysis and commentary on when and how managers in both
service and manufacturing industries can make the crucial
transition to mass customization. He details the strategies,
methods, and organizational transformations required to
develop, produce, market, and deliver individually customized
goods and services, and he shows managers how to analyze
their own industries to determine if they should shift to
mass customization.
The term "mass customization"
was coined by Stan Davis in his 1987 book, Future Perfect,
Joseph Pine has documented its place in the continuum of
industrial development and mapped out the management implications
for firms that decide to adopt it.
B. Joseph Pine II is a program manager
with IBM Consulting Group, where he has developed programs
for implementing the principles of mass customization. He
researches management and strategy issues for client executive
education and management consulting practices.
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