Mass CustomizationAn important task for many companies today is to look at individual customers, proactively develop products and services for individual customer preferences, and then produce and distribute. Over the past decade, general allocation has been shown to be an approach to this goal. This paper discusses the background of the general allocation and the elements of this strategy and recalls its practical implementation.
In particular, it describes the four basic building blocks of a complex allocation system: (a) comprehensive distribution provides customized products or services that meet the needs of each client; b) requires the initialization process that integrates the client into the supply chain; products and services to the public are affordable to customers Previously bought a standard product that requires appropriate prices and then costs c)To achieve such a situation of low cost and differentiation at the same time, the total allocation depends on the stable solution spaces, which sets the total allocation system It is the customer who determines what a business is” (Drucker, 1954) The ability to control the value chain from the customer’s perspective determines the competitiveness of many companies in terms of the famous printing company. In many sectors, companies today face an uninterrupted trend towards heterogeneity in demand. Annotations can be found in the growing number of single households and the orientation of design, quality and new job awareness that requires durable and reliable products tailored to meet the specific needs of the buyer (Brahalad & Ramaswamy, 2004, Zubov & McSamen, 2003). In particular, increasingly wealthy consumers are trying to express their personality by choosing the individual product.
So the manufacturers have to create product software with an increasing variety of modular production. Ultimately, many companies have to deal with the demand of their customers individually To face this challenge, today’s new technologies offer many opportunities that were previously not available. The advent of information and communications technology provides a broad connectivity and direct interaction between individual customers and customers and suppliers. This connection provides a tremendous amount of additional flexibility. Apart from “listening to the customer’s reach” (Dahan and Houser, 2002) to better meet specific needs and with shorter response times, manufacturers have the ability to look at customers as individuals, proactively develop their products for meet their needs at the price they want and pay, they want to accept it. But despite all the technological advances, this is by no means a direct task. Especially in today’s highly competitive business environment, customer service activities must be done efficiently and effectively at the same time.
Globalization has become the main idea of ??the last decade to achieve this exact objective. The idea is to provide customized products and services with efficient mass production. The companies that offer integral customization have become customer-centric companies (Tsing and Beller, 2003), the organization of all value creation activities around the interaction with individual clients. When the issue of mass allocation is raised, Dell’s successful computer supplier model is often called as one of the most impressive examples.
The growth and success of Dell is based on the company’s ability to produce customized computers on demand, meet the needs of each individual customer and produce these items without any risk of stocking the finished products only after they are (and pay for). ) Command. But many other companies have also maintained long-term relationships with their customers through mass customization. Consider the following least known but notable examples:#Time offers custom made watches in Switzerland in high quality with almost endless customization options. The company operates one of the best online configuration tools available today and allows its customers to become real code designers. In addition, it also benefits from strong pricing approaches and modules. The different components of the clock have a different price, and by creating a product that perfectly matches the personal desire of each customer to push, the dream of the consumer of consumer retailing is becoming reality (121Time, 2006).
# Silve, a London based company based in Munich with shoes dedicated to women, is an excellent example of a company that interacts well with its customers in both a traditional shop and on the Internet. SILV allows its customers to create their own shoes by choosing from a variety of materials and designs, in addition to valid fit valid shoe based on 3-D survey of women’s feet. Consultants provide trained counselors at the company’s stores and offers online store rearrangement. Custom made shoes are made in Italy, are delivered in about three weeks and cost between 150 and 250 euros (180-285 dollars, Salafi, 2007).# Sears became one of the key players in customization and customization business in the United States.
Its subsidiary, Land End, was one of the first companies to offer comprehensive customization of clothing online and in large quantities. Today, up to 60% of all products in some categories are actually for order. But in the Sears and Kenmore hardware business, the company is a leader in providing online tools where consumers can design their own kitchens (as well as other rooms in their homes) and provide them with custom furniture and furniture (Sears, 2007).This research paper will explore the common elements and characteristics of successful comprehensive privatization strategies. It is organized as follows. In the next section, we review the development of the customer’s perspective in the modern company towards the latter way of focusing on customers. We then define the term comprehensive allocation in more detail.
Four basic principles of this strategy were then discussed. The research document closes some observations on the implementation of public allocation in industrial practice. The development of customer orientation and customer service The company’s customer-focused idea is to focus all its operations on customer service and to offer unique value when looking at customers as individuals (Seth, Sisodia and Sharma, 2000; Zeng & Beller, 2003). A collaborative process or a joint establishment between the company and its customers, as we will see, this common creation is a specific component of the comprehensive privatization strategy.
To provide a better understanding of the differences in the company that focuses on customers, we will briefly review in this section the development of the modern company from its assets in mass production to its form The latter of the customer orientation and focus on work E.At present, global privatization is often considered a strategy to replace mass production (1993). But before it produced a mass production of industrial revolution, the products were personalized with craft. Each client was part of one, and marketing was individual and personal, but was done implicitly as part of the interaction process. Crafts often show high quality products that are available only to groups of selected individuals (with sufficient purchasing power). The emergence of mass production of standardized products and processes to take advantage of the economy of standards and division of labor. This has led to a significant reduction in the cost of production.
As a result, a large number of people could afford goods and services that were previously available only to the pockets of society. A new generation of global consumers has been created to enjoy products designed to meet the needs of a large enough population to justify the fixed cost of production, including the cost of installation and capital expenditures. The “global consumer community” (Seth, Sisodia and Sharma, 2000, p.55) woke up as a market for sellers, prompting companies to adopt forms of product-focused regulation. Groups of related products were viewed during this period as the main foundation of the organization’s structure (Homburg, Werkman, and Jensen, 2000). The resulting increase in product diversityand competition in the late 1950s led companies to start paying more attentionto the markets of products. The market trend emerged as a corporate pattern,after Drucker (1954) argued that the creation of a satisfied customer was theonly true definition of commercial purpose.
Market orientation is your firstgoal to discover and meet customer needs with benefit. Kotler (1967/1991)mainstreamed the market-oriented perspective, and was soon widely adopted.Market orientation means that one sees the total market not as a homogeneousmarket, but as a consumer market. Retailing began with the concept ofdemographic division with variables such as age, gender and income. This led toa limited number of product-centric variables (Smith, 1956).
Later, thedivision became more accurate. More specific outlets based on past lifestylesand purchasing behavior have increased the number of product variables to meetindividual and specific needs. Fragmentation of the market requires informationon consumer needs (Narver & Slater, 1990). Current market research toolshave been created as tools to meet this exact set of demands by applying abetter understanding of customer information.
With continuous improvement ofsegmentation, segmentation of the market has been replaced by the concept ofcustomer orientation. (B) the ability of the organization to generate,disseminate and use superior information about customers and competitors; and(c) the coordinated application of overlapping resources in order to create ahigher value for the client (for a review of the literature) , See today,1994). In particular, a strong focus on providing “value to thecustomer” across all functions of the organization can be seen as adistinction between customer orientation and the previous stage of marketorientation. The client approached the company approach. During this time, theconcept of marketing function has been developed as a central entity to dealwith and think about the company’s clients. Relationship management hasenhanced this perspective. “It emphasizes understanding and meeting theneeds, desires and resources of consumers and individual customers rather thanthose of mass markets and inclusive sectors” (Seth, Sisodia and Sharma,2000).
Instead of customer segments, individual customers were seen as thetarget of the marketing mix, resulting in the term “individualmarketing” (McKenna, 1991). Members of the market segment are no longerconsidered as homogeneous in relation to their contribution to the company’sprofits, but each customer is evaluated separately. Based on the individualentry relationship out of the marketing function of individual clients(“portfolio participation”), customer service is served through aunified presentation or, if profitable, through a personal presentation(Parasuraman & Grewal, 2000).
As a result, product-based strategies arereplaced by a competitive strategy based on increasing long-term shareholders’equity. The client-centric company brings togethera customer-oriented approach to managing individual relationships (Biller,Richwald and Zeng, 2006, Zeng and Beller, 2003). It also extends theresponsibility of dealing with the client from the marketing function of theentire organization. Customer focus means that the organization as a whole iscommitted to meeting the needs of all relevant customers. At the strategiclevel, this translates into the direction and mentality of the company to exchangeinterdependence and values ??with long term clients. At the tactical level,companies must align their operations with the convenience of customers withgreater importance, rather than focusing on the convenience of operations.
Ofcourse, adequate infrastructure and leadership structures must be implementedto achieve this. These changes include a centralized organizational structureon the client. Traditional separate functions such as sales, marketing(communications) and customer service must be integrated into acustomer-centric activity (Seth, Sisodia and Sharma, 2000). In addition, thecentralized customer is changing the marketing perspective of the demand sideof the supply. Marketing management has traditionally been considered demandmanagement.
The focus was on the product or market, and the marketing demandwas stabilized through promotional activities such as incentives or pricingpolicies. The customer focused company focuses its attention on individualcustomers as a starting point for all activities. Instead of creating andstabilizing demand, ie, trying to influence people in terms of what they buy,when they buy and how much they buy, companies should try to adjust theircapabilities, including product design, production chains, and supply. Supplyto respond to customer demand Comprehensive allocation can be considered as acorporate strategy to achieve these goals of customer focus, both in terms ofmarketing and sales, as well as processes and chain management.
Display. Mass Customization: An operational strategyto enable customer-focused businesses Davis, who coined the phrase in 1987,refers to a Mass Customization when “the same large number of customers can be reached as in massmarkets of the industrial economy, and simultaneously they can be treatedindividually as in the customized markets of preindustrial economies” (page169). ) Pine (1993)popularized this concept and defined the general allocation as “providingenormous diversity and individualization at prices comparable to standard goodsand services” to allow the production of products and services “withenough diversity and customization that almost everyone finds exactly what theywant “(p.9)) Zeng and Jiao (2001) presented a practical but precisedefinition. Mass personalization corresponds to “techniques and systems todeliver goods and services that meet the needs of individual customers with aproduction efficiency close to the mass” (Zeng and Jiao, 2001, page 685).
Thisdefinition means that the objective is first to detect the needs of thecustomers and then meet these needs efficiently with an almost equal massproduction. This definition is often complemented by the requirement thatindividual goods do not support the price premiums traditionally associatedwith the assignment (Davis, 1987, Westbrook and Williamson, 1993). However,consumers are often willing to pay for a customizable price that reflects anincrease in utility profits for the customer of a product that better fitstheir needs than the best standard product that can be achieved (Chamberlain,1962).In conclusion, we can define theintegral assignment as follows: The integral assignment refers to the customerprocess Codes of products and services that meet the needs of each individualcustomer with respect to some of the characteristics of the product.All the operations are carriedout within a fixed solution space, characterized by stable but still flexibleand receptive processes. As a result, the allocation costs allow a price levelthat does not imply a change in the upper part of the market.In the next section, we willdiscuss the key elements of this definition in more detail.
Before that, thereseems to be an important distinction between the terms collective assignmentand personalization, since the terms are sometimes used in tandem, andsometimes they are used differently explicitly. While personalization refers tochanging, assembling or modifying the components of a product or serviceaccording to the needs and desires of the clients, the assignment implies anintense communication and interaction between two parties, that is, the clientand the supplier. . Personalization is usually about selecting or filteringinformation objects for the individual who uses information about theindividual (client profile) and then negotiating the selection with theindividual. Therefore, the allocation is compared with the recommendation: froma wide range of possibilities, specific recommendations of the clients areselected (Imhoff, Loftis, Giger, 2001, Resnik and Varian, 1997).
From atechnical point of view, the personalization or automatic recommendation meansto match the information of the products or information objects with thepersonal information of the client (stored in a customer profile).Personalization is increasingly an important component of modern Internetapplications. In most cases, personalization techniques are used to assigninformation services to the user’s personal needs. In marketing, personalizationsupports one-to-one marketing (Peppers & Rogers, 1997), which shouldincrease the customer’s participation over the lifetime.A good example ofpersonalization and customization is provided by Lands End, a catalog retailer.The company was a pioneer in the exploration of personalization techniques onthe Internet and has been using the virtual model and service recommendation onits website since 1999. The system recommends a customized package of standardmass products that match each other and presents the customer’s style Thisservice offers customers a set of knitted garments instead of isolatedgarments. But each product is still a standard product.
In 2003, Land also gavethe end of the general allocation. Online, customers can request customtrousers and shirts. All products are made to order in a particular factory.The company offers a large number of design options and elements chosen bycustomers using a dedicated Internet toolkit. It is clear that the integralallocation and personalization can be combined and mutually beneficial.
Theclient can use the recommendation system based on their virtual model toexplore the current range of products and find the right one for their needs.If this product is not available in the category you want, you can move to thecustomization screen where you can set up this product, even if you have to paya premium and wait a little longer. Mass Customization Strategies element Under the comprehensive allocationdefinition in the previous section, the comprehensive allocation consists offour key elements: (a) comprehensive allocation that provides customizedproducts or services that meet the needs of each individual client; (b)requires a common creation process, C) the distinction between mass allocationand traditional trades, and personal products and services of a personal natureshould be within the reach of those customers who have previously purchased astandard commodity, which requires adequate prices and then cost levels; and(d) to achieve a low-cost situation and differentiation at the same time , Andthe comprehensive allocation is based on the areas of the solution Stacker,which specifies constraints and compliance options for a large-scale allocationsystem. In this section, we will discuss these four elements of the comprehensiveallocation in more detail.