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The false promise of mass customization
Automobile makers have long had high hopes for building their cars to order. Companies such as BMW, Ford Motor, and General Motors are convinced that the costs they can wring from their business systems by switching to a build-to-order (BTO) system are enormous, that the benefits to consumers are numerous, and that the many difficult challenges they face in implementing BTO can be overcome. Are they right?
The take-away: The challenges of implementing BTO in the automobile industry are daunting—particularly in North America—and the authors of this article remain doubtful that its benefits can be realized. Instead, a "virtual" alternative might expand the consumer's choice without presenting the challenges posed by full-scale BTO.
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