Christof M. Stotko

Bio: Christof M. Stotko is an academic researcher from Technische Universität München. The author has contributed to research in topics: Mass customization & Customer retention. The author has an hindex of 5, co-authored 7 publications receiving 457 citations.

Does mass customization pay? An economic approach to evaluate customer integration

Abstract: Keywords Mass customization, flexible manufacturing, customer integration, economies, cost and profit drivers Abstract. The paper provides an integrated view of value creation in mass customization-based production models. While flexible manufacturing technologies are often seen as the main enabler of mass customization, we argue that modern information technologies play a similar important role. Their significance is based on enabling a distinctive principle of mass customization efficiently: customer integration into the produc- tion processes. The customer is integrated into value creation during the course of configuration, product specification and co-design. Customer integration is often seen as a necessity and source of additional costs of customization. However, we argue in this paper that customer integration may also be an important asset to increase efficiency and could pave the way for a new set of cost-saving potentials. We coin the term 'economies of integration' to sum up these saving potentials. Economies of integration arise from three sources: (1) from post- poning some activities until an order is placed, (2) from more

Toolkits for open innovation - the case of mobile phone games

Abstract: User toolkits enable consumers to develop customized product applications without having dedicated technical knowledge. Applied in the field of handheld computing, toolkits are a very powerful instrument to meet the growing demand for customized mobile applications. In this paper, the theoretical principles and functionalities of user interaction toolkits are translated into a technical software concept for mobile phone games. The presented toolkit is a new Internet based application allowing users to create a customized game on their desktop computer and to transfer it to handheld devices. In contrast to well known open source software development projects, no programming expertise is required. Thus, participation of innovative users is comparatively easy. In line with the open source concept, but as an extending feature to the toolkit approach, the presented solution is embedded in an online community. Thus, contributions by innovative users can be stored in a library leading to a continuously growing information pool of available components. Games and components can be passed on easily between customers, facilitating the adoption of other users' contributions as well as collaborative development between users. The community feature of the toolkit does not only provide the common toolset of online communities allowing for user-to-user communication, e.g. chats and bulletin boards, or text based contributions, e.g. recommendations, product evaluations and voting tools, but it also enables users to exchange and jointly develop actual product prototypes. In this regard, the presented 'toolkit for open innovation' is the foundation of a 'value web' in a unique manner: a value web in between consumers and users. The paper further derives economic benefits of the developed toolkit for mobile phone game creation theoretically and integrates them into a diversified business model. The toolkit as a distinct performance feature has the potential to establish a social environment for its most enthusiastic users and thereby to strengthen user relationships with the provider and increase overall business success.

Mass customization: four approaches to deliver customized products and services with mass production efficiency

Abstract: Enterprises in all branches of industry are being forced to react to the growing individualization of demand, yet, at the same time, increasing competitive pressure dictates that costs must also continue to decrease. Companies have to adopt strategies which embrace both cost efficiency and a closer reaction to customers' needs. Mass customization meets this challenge by producing goods and services to meet individual customer's needs with near mass production efficiency. The paper discusses four different approaches towards mass customization. The authors' focus is to show how product-service-bundles may be combined strategically to foster a mass customization strategy.

Distributed mini-factory networks as a form of real-time enterprise: concept, flexibility potential and case studies

Abstract: The dynamics of market demands require manufacturers to be flexible. Currently, however, more flexibility can only be achieved with a considerable trade-off in resource utilization. Under-utilization of resources in many companies presently lies at between 20–50%, resulting in massive cost disadvantages. This particularly applies to the field of machine and plant engineering. The main reason for poor resource utilization is that today’s value-added chains are geared toward product and unit quantities. To a large extent, flexibility and efficiency have only been optimized at the level of the individual enterprise. In part, this is due to product complexity and the shortening of delivery times in recent years by almost 50% (Eggers/Kinkel 2002). Since the potential within companies for rationalization and flexibility has largely been exhausted, the most promising avenue for responding to the need for further dynamics in the creation of value today is considered to be the reorganization of the entire value-added chain across company boundaries. At the center of attention is production that takes place in dynamic, quickly adaptable networks. Complementary and partially overlapping production competencies in a value-added network permit the metamorphosis from rigid value-added chains to highly dynamic networks (Zahn/Foschiani 2002). Interaction within dynamic production networks

Mit Mass Customization basiertem CRM zu loyalen Kundenbeziehungen

Abstract: Marketing als Denkhaltung, Fuhrungsfunktion und Aktivitat betrifft alle Bereiche, Abteilungen und Prozesse von Unternehmen und Organisationen und sollte diese daher gleichermasen durchziehen. Dementsprechend hoch ist auch traditionell sein Stellenwert in Forschung und Praxis. Wahrend die einen jedoch bereits voller Stolz auf das Erreichte zuruckblicken (Sheth et al. 1988, S. v), sehen andere das Marketing einem epochalen Wandel unterworfen: „An abundancy of scholarly research and practitioner proclamations have suggested that marketing is undergoing a fundamental, epoch breaking change.“ (Palmer/Ponsonby 2002, S. 173). Sie streben die Etablierung eines neuen Marketings an, eines mit Fokus auf Beziehungen als „unit of analysis“ — und in expliziter Abgrenzung zum vorherrschenden „marketing mix management paradigm“ (Gronroos 1994, S. 4 oder auch Gronroos 1997, S. 407).

The “I Designed It Myself” Effect in Mass Customization

Abstract: Many companies offer websites that enable customers to design their own individual products, which the manufacturer can then produce to order. To date, the economic value of products self-designed using mass customization (MC) toolkits has been attributed to the two factors of preference fit achieved (which should be as high as possible) and design effort (which should be as low as possible). On the basis of literature on behavioral decision making, we suggest a third factor, namely the awareness of being the creator of the product design. In the course of five different studies, we provide experimental evidence that this “I designed it myself” effect creates economic value for the customer. Regardless of the two other factors, self-designed products generate a significantly higher willingness to pay. This effect is mediated by feelings of accomplishment and moderated by the outcome of the process as well as the individual's perceived contribution to the self-design process. These findings have important implications for MC companies: It is not enough merely to design MC toolkits in such a way that preference fit is maximized and design effort is minimized. To capture the full value of MC, toolkits should also elicit “I designed it myself” feelings.

Product Variety Management

Abstract: A great challenge facing industry today is managing variety throughout the entire products life cycle. Drivers of products variety, its benefits, pre-requisites and associated complexity and cost are presented. Enhancing consumers’ value through variety and approaches for achieving it efficiently including modularity, commonality and differentiation are discussed. Variant-oriented manufacturing systems paradigms, as enablers of product variety, and the effective co-development of variants and their manufacturing systems to ensure economic sustainability are reviewed. Industrial applications and guidelines to achieve economy of scope with advantages of economy of scale are discussed. Perspectives and insights on future research in this field are offered.

Cracking the Code of Mass Customization

Abstract: Fabrizio Salvador is Professor of Operations Management at the Instituto de Empresa Business School, adjunct professor at the MIT-Zaragoza Logistics Program and research affiliate at the Massachusetts Institute of Technology. Pablo Martin de Holan is the chairman of the Entrepreneurial Management Department of the Instituto de Empresa Business School and a professor of Strategy at INCAE Business School. Frank Piller is a chair professor of management at the Technology & Innovation Management Group of RWTH Aachen University in Germany. He is also a co-founder of the MIT Smart Customization Group and a founding partner of Think Consult, a management consultancy.