Abstract
This article develops a framework, including a 2 × 2 matrix, to help guide firms in deciding when to design their products to be integral, modular-in-production, modular-in-use with a focus on selling “cartridges,” or modular-in-use with a focus on promoting numerous apps. Three key factors are as follows: the level of user heterogeneity, the disparity across components in frequency of updating, and the modularity/integrality penalty.
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