Management Levers for Product Platforms

Abstract

Platforming has become an important means of cost-sharing among industrial products. However, many firms face systemic downward pressure on commonality, with the result that many platforms realize less commonality than intended. Past research has hypothesized that divergence is the result of conflicting tensions between product customization/optimization and cost control. This article investigates the control and incentive levers available to platform managers to shape the behavior of the organization when divergence opportunities arise. Management levers are drawn from a series of 12 industrial case studies, stemming from investigations of the causes of divergences. These management levers are categorized as technical levers, financial levers, and organizational levers. This article illustrates each of the management levers with examples from the case studies.