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virtualization of design and production a thesis - Bilkent University

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individual wants <strong>and</strong> needs can be ascertained <strong>and</strong> fulfilled.<br />

They have determined that reducing product life cycles <strong>and</strong><br />

fragmenting dem<strong>and</strong> can yield powerful advantages for those<br />

causing these changes relative to those forced to react to<br />

them. Leading companies have created processes for lowcost,<br />

volume <strong>production</strong> <strong>of</strong> great variety, <strong>and</strong> even for<br />

individually customized goods <strong>and</strong> services. They have<br />

discovered the new frontier in business competition: Mass<br />

Customization. In this new frontier, a wealth <strong>of</strong> variety <strong>and</strong><br />

customization is available to consumers <strong>and</strong> businesses<br />

through the flexibility responsiveness <strong>of</strong> companies<br />

practicing this new system <strong>of</strong> management” (Pine II, 6-7).<br />

To clarify the basic idea <strong>of</strong> mass customization, Pine II gives the example <strong>of</strong> a<br />

fast food restaurant where they used to serve mass produced hamburgers, french<br />

fries <strong>and</strong> drinks. However, recent observation is that they provide half dozen<br />

varieties <strong>of</strong> burgers, s<strong>and</strong>wiches, salads, spaghetti, pizza along with a variety <strong>of</strong><br />

s<strong>of</strong>t drinks. It is the same for the automobile industry where Henry Ford’s<br />

dictum, “You can have any color car you want as long as it is black” had<br />

operated for many years. The shift from homogenous markets <strong>and</strong> neglected<br />

dem<strong>and</strong>s to a fragmented dem<strong>and</strong> <strong>and</strong> heterogeneous markets has an extensive<br />

impact on the automobile industry. The sole reason for this is the fact that<br />

automobile industry being one <strong>of</strong> the most complex <strong>and</strong> innovative industries,<br />

had to go under an immediate adaptation in order to pursue high competition.<br />

Emphasizing <strong>design</strong> <strong>and</strong> innovation, automobile firms <strong>of</strong>fers a wide variety <strong>of</strong><br />

products even within the same model proving to be the most suitable instance <strong>of</strong><br />

a mass customized system.<br />

47

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