Modularity, open architecture and innovation: an automotive perspective

Abstract

Competitive pressures in the automotive industry are forcing Original Equipment Manufacturers (OEMs) to modify their traditional scope for value creation and value capture. This situation is exemplified by the semi-open architectures of today's motor vehicles, in the complete modification of hierarchies in the automotive value networks and in the modification of the relations of automotive OEMs ecosystems. These phenomena are studied in this paper through the discussion of the causes of the shift toward automotive architecture openness and the utilisation by OEMs of Full Service Vehicle suppliers (FSVs) as tools for value creation.