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|storemode=property
|title=An empirical study on product configurators’ application: Implications, challenges, and opportunities
|pdfUrl=https://ceur-ws.org/Vol-1453/02_ZhangHelo_AnEmpiricalStudyOnProduct_Confws-15_p5.pdf
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==An empirical study on product configurators’ application: Implications, challenges, and opportunities==
https://ceur-ws.org/Vol-1453/02_ZhangHelo_AnEmpiricalStudyOnProduct_Confws-15_p5.pdf
An empirical study on product configurators’ application:
Implications, challenges and opportunities
Linda L. ZHANG+ and Petri T. HELO
Abstract.1 As computer systems, product configurators have been from effectively using configurators in the future. However, it is
widely applied in practice for configuring a right amount of product important to have a clear understanding of all these issues. This is
variety. While studies have been reported to shed light on how because such an understanding can help companies better plan
product configurators’ application achieves time reduction and actions for optimally applying product configurators, thus realizing
quality improvement in fulfilling customer orders, empirical
the benefits of product configurators’ application to the largest
investigations addressing the implications of product configurators’
application for companies’ business activities are very limited. extent.
However, understanding the implications is very important for This study tries to fill this gap by investigating the implications
companies because with such an understanding, they can better plan of product configurators’ application. It is done using a quantitative
actions and make changes to embrace the implementation of product research method, as described in the next section. Based on the data
configurators. Thus, based on a survey, this study investigates the collected, we present, in Section 3, the results and analysis. The
implications of product configurators’ application. The results results are discussed with respect to (i) how product configurators’
indicate (i) how product configurators’ application affects application affects companies’ business activities, (ii) the difficulties
companies’ business activities, (ii) the difficulties in designing, in designing, developing/maintaining, and using product
developing, and using product configurators, and (iii) the potential configurators, and (iii) the potential barriers influencing the effective
barriers preventing companies from effectively applying product
application of product configurators in the future. Built upon the
configurators in the future. With the results, we further highlight
several improvement areas for companies to investigate in order to insights in Section 3, we further discuss the possible changes and
reap, to the largest extend, the benefits of implementing product improvements that companies may undertake.
configurators.
2 METHODS
1 INTRODUCTION As the aim of this study is to identify the implications of product
Since the early 90’s, product configurators have been receiving configurators’ application for companies’ business activities, an
continuous interests and investigations from both the academia and empirical study was performed. In doing so, a questionnaire was
industrial alike. Resulting from these efforts, countless articles have developed for collecting data. The collected data was computed and
been published to present solutions to diverse configurator related analyzed for revealing the application implications and for
issues. Many of these articles address configuration knowledge identifying the related opportunities as well.
representation and modeling, methods and approaches for product In designing the questionnaire, we included such questions like
configurator design from a theoretical point of view (e.g., Haug, the functions that product configurators perform, the business
2010; Pitiot et al., 2013; 2013; Zhang et al., 2013). In comparison, a process and IT system changes caused by product configurators’
relatively small number of articles deal with the practical issues application, the difficulties in implementing product configurator
related to product configurators’ application. Among them, some projects, the potential barriers preventing the effective application of
articles empirically investigate how product configurators achieve product configurators in the future, and the performance
lead-time reduction and quality improvement (Trentin et al., 2011 & improvements resulting from product configurators’ application.
2012; Haug et al., 2011); some articles use single cases to show (i) Besides these questions, there are also general questions such as
how product configurators’ development can be facilitated (Haug et position titles, the application time of configurators. By considering
al., 2010; Hvam et al., 2003; Hvam & Ladeby, 2007), (ii) how the explorative nature of this study, we used nominal scales by
product configurators contribute to variety management (Forza & presenting alternative choices for each question. The alternatives
Salvador, 2002), and (iii) the suitable product configurator were determined based on the literature and our experiences of
development strategies (Haug et al., 2012). Due to the relatively less working with companies, where product configurators are applied.
investigation, several important issues related to configurators’ Besides alternatives, we included the opportunity for respondents to
application are unclear. They include (i) how product configurators’ choose “Other” and give details. In this way, we avoid the possibility
applications affect companies’ business activities, (ii) the difficulties of missing potential alternatives. To verify the initial questionnaire
in designing, developing/maintaining, and using product with respect to the sufficiency and appropriateness of questions, we
configurators, and (iii) the barriers potentially preventing companies pretested it in 5 companies, with which we have collaborations. In
+: Department of Management, IESEG School of Management (LEM-
CNRS), France, email: l.zhang@ieseg.fr
5 Juha Tiihonen, Andreas Falkner and Tomas Axling, Editors
Proceedings of the 17th International Configuration Workshop
September 10-11, 2015, Vienna, Austria
the pretest, 5 company representatives filled up the questionnaire total number of tasks, instead of that of companies. In this regard,
and provided comments. In addition, we made phone contacts for they are not mutually exclusive with respect to companies. This is
clarifications of the comments and additional remarks. Based on the the same with the calculation of all the rest figures.) Consistent with
feedback, some questions were revised, leading to the finalized the tasks that configurators perform, the major users include sales
questionnaire. (Appendix A summarizes the questionnaire.) staff (in 46% of the respondents), designers (in 25% of the
With the finalized questionnaire, survey was conducted in a respondents), customers (in 15% of the respondents), and production
research panel involving managers responsible for IT investments in planners (in 14% of the respondents), as shown in Fig. 1(b). While
US companies in October and November 2013. These companies published articles provide anecdotal evidences, there is no study
were mainly from the computer, telecommunication system, and presenting such a complete distribution of configurators’ functions
industrial machinery industries. Panel members were invited by a and users.
commercial research data collection company: EMPanel Online.
Data was collected by sending invitation by email and using an on-
Product
line survey tool. To ensure that the respondents know about documentation
Customers
15%
configurators and were responsible for configurator projects, a 29%
Sales order Planners 14% Sales staff
qualifying question was asked. In addition, another two questions processing 46%
regarding industry type and company size were asked. By 11% 60%
Production Designers
considering these questions, we obtained and analyzed 64 completed documentation 25%
questionnaires, which had balanced distributions with respect to the
company size, industry, and time duration (in year) of product
configurators’ application. (a) Major tasks and percentages (b) Main users and percentages
In analyzing the data, we computed the total occurrence of each
No process
alternative, which was selected by the respondents, and the changes
Quotation No functional
corresponding percentage. In this regard, we analyzed the 11% preparation unit changes Sales
distribution of the selected alternatives. Production doc. 24% 19% 32%
generation 16%
Production
Prod. function 17%
Prod. document
3 RESULTS generation
specification
Product design
27%
22% 32%
In accordance with the questionnaire, the collected data is analyzed
with respect to (i) how the application of product configurators
(c) Major process changes and percentages (d) Main unit reorganization and percentages
affects companies’ business activities, (ii) the difficulties in
designing, developing/maintaining, and using product configurators, Figure 1: Some results
and (iii) the issues potentially influencing the effective application
of product configurators in the future. 3.1.2 Functional units reorganized
While product configurators take over tasks, which are performed
3.1 How product configurators’ previously in different functional units, their application does not
application affects companies’ bring many changes to the functional units. As shown in Fig. 1(c),
business activities both the sales and product design/development units in only 32% of
the respondents are affected, thus reorganized; the production unit
In studying how companies’ business activities are affected by the
in 17% of the respondents is reorganized. It is interesting to see that
application of product configurators, it is essential to understand the
product configurator application does not bring any changes to the
major tasks that product configurators perform. This is because these
functional units in 19% of the respondents. Our experiences of
tasks contribute to many of companies’ activities for designing,
working with companies show that this might happen in the
producing, and delivering products. It is equally important to
situations, where customers are the major users of product
understand the major users of product configurators. In accordance
configurators. However, this needs to be further confirmed in the
with the configurators’ tasks and users, there might be changes to
future investigations.
companies’ business processes, functional units, IT systems, the
number of employees, and performances.
3.1.3 Business process changes
3.1.1 Major tasks and users of product As product configurators automatically perform many activities,
configurators which are carried out manually in the past, their application might
incur business process changes as well. In the survey, many
Being consistent with the literature, the survey results suggest that a
respondents indicate that their business processes have been
configurator performs multiple tasks and has multiple users. As
changed. These changes include (i) the original manual quotation
shown in Fig. 1(a), configurators in 60% of the respondents (i.e., the
preparation is done automatically (in 24% of the respondents), (ii)
responding companies) perform sales order processing, such as
the sales unit is responsible for the task of specifying product
quotation preparation, sales order specification, and product
functions (in 27% of the respondents), (iii) product technical details,
specification; configurators in 29% and 11% of the respondents
e.g., BOMs, drawings, are dealt with automatically (in 22% of the
carry out product documentation: BOM and drawing generation and
respondents), (iv) manufacturing documents are generated
manufacturing documentation: routing and process plan generation,
automatically (in 16% of the respondents), as shown in Fig. 1(d). It
respectively. (Note that these figures were calculated based on the
Juha Tiihonen, Andreas Falkner and Tomas Axling, Editors 6
Proceedings of the 17th International Configuration Workshop
September 10-11, 2015, Vienna, Austria
is worth mentioning: as pointed out by 11% of respondents, that achieve 0-30% and 30%-50% delivery lead time reduction,
product configurators’ application does not bring changes to their respectively.) This might be caused by the fact that there are more
business processes. This seems consistent with what we have found interactions among different functional units in the entire cycle of
above: 19% of respondents indicate that product configurators’ delivering sales orders. These interactions may result in lower
application does not cause changes to the functional units. When improvements in sales delivery lead time.
there are no changes to companies’ functional units, there may not
be the changes to the business processes. However, this needs to be 3.2 Difficulties in designing,
further tested in the future. developing/maintaining, and using
product configurators
3.1.4 Changes to companies’ legacy As shown in the results, most companies experience difficulties in
systems designing, developing/maintaining, and using product configurators.
In performing tasks, product configurators interact with companies’ 50% of the respondents indicate that it is rather difficult for them to
other IT systems for receiving inputs and/or sending outputs. design product configurators. The two major reasons are (i) the lack
Consequently, product configurators’ application may cause of IT system designers (in 50% of the respondents) and (ii) IT system
changes to companies’ legacy systems. The results confirm this. As designers and product designers cannot communicate well (in 45%
shown in the results, (i) design systems are modified to be linked of the respondents). With our experiences of working with
with configurators (in 33% of the respondents), (ii) production companies and based on the literature, these results are
systems, such as product planning and control systems and material understandable. Manufacturing companies normally hire IT
resources planning systems, are modified to be linked with product engineers for maintaining systems in support of their core business
configurators (in 48% of the respondents), and (iii) accounting activities: design and production. In this regard, the IT engineers
systems are modified to be linked with product configurators (in 9% may not possess sufficient skills and capabilities for designing
of the respondents). At last, 10% of the respondents indicate that product configurators. The early literature points out that due to the
there are no changes to their legacy systems. When product differences in communication languages, configurator designers and
configurators are built-in modules of ERP systems, it might be product experts have difficulties in making effective
possible that companies do not need to modify their legacy systems. communications (Haug et al., 2010). The results found in this study
are consistent with the literature.
Similarly, most respondents have difficulties in
3.1.5 Changes to the number of developing/maintaining product configurators. The biggest
employees challenge for companies to develop/maintain product configurators
is the high complexity of product configurators, as supported by 52%
As product configurators perform automatically many activities,
of the respondents. The other two main difficulties include (i) the
which are performed manually in the past, intuitively, product
lack of good IT system developers (in 24% of the respondents) and
configurators’ application should reduce the number of full time
(ii) the continuous evolution of products and the resulting high
employees. However, it is surprising to see that 63% of the
product complexity (in 24% of the respondents). While product
respondents hire full time employees, whereas only 6% indicate that
complexities do not appear as a main difficulty in designing
they lay off employees. 31% point out that there are no changes to
configurators, they do cause difficulties in developing and
the number of their employees. As indicated in the following results
maintaining product configurators. This is because in accordance
(Subsections 3.2 and 3.3), companies do not have sufficient good IT
with product complexities, the product configurator design is
system designers and developers. In this regard, the application of
complex too. It is understandable that complex product
product configurators may lead to the recruitment of new employees.
configurators are difficult to develop.
In using product configurators, companies also have difficulties.
3.1.6 Performance improvements These are caused by (i) un-user friendly interfaces (in 44% of the
respondents), (ii) the inefficient communications for getting
The available literature reports diverse performance improvements required inputs (in 31% of the respondents), (iii) the high complexity
resulting from the application of product configurators. This study of product configurators (in 12.5% of the respondents), and (iv) the
finds similar results, thus supporting the literature. For all the lack of sufficient training (in 12.5% of the respondents). In
respondents, the improvements include (i) increased sales volume, processing customer orders, configuring products, and generating
(ii) increased correct sales orders, (iii) reduced production rework, product/manufacturing documents, configurators require diverse
(iv) increased customer orders, (v) reduced order processing time, inputs. These inputs are from customers, sales staff, designers, etc.
and (vi) reduced sales delivery time. As indicated by the results, In many cases, the input providers are from different offices or even
47%/44%/ 44%/31% of respondents achieve 30%-50% increase of different companies. This location dispersion may hinder the
sales volume/increased correct sales orders/reduced production effective communications for required inputs. In addition, even in
rework/increased customer orders accepted, respectively. Seen from the situation where the input providers are in the same location, due
the results, it is difficult for companies to achieve higher to, e.g., other tasks that they need to deal with, the input providers
improvements in these performance measures. For example, only 3% may not be able to supply required inputs on-time. In our view, the
of the respondents achieve 80% increase of sales volume. It is other three difficulties are interconnected with one another. First,
interesting to see that companies reduce much order processing time, complex product configurators may have many interrelated modules
whereas they do not achieve equivalent improvement in the sales and procedures. More training is required to understand and use
delivery lead time. (50% of the respondents indicate higher than 50% these modules and procedures. However, companies are busy with
reduced order processing time; 30% and 22% of the respondents dealing with daily operations activities and may not give enough
7 Juha Tiihonen, Andreas Falkner and Tomas Axling, Editors
Proceedings of the 17th International Configuration Workshop
September 10-11, 2015, Vienna, Austria
training time to users. As shown in practice, e.g., the fail of SAP time, the reduction of configuration errors, the easy application, the
project in Avon (http://blogs.wsj.com/cio/2013/12/11/avons-failed- reduction of training time, etc (Haug et al., 2012). Such design and
sap-implementation-reflects-rise-of-usability/), caused by design development demands sufficient system designers and developers
difficulties, complex IT systems tend to have un-user friendly with high skills and experiences. However, the results indicate that
interfaces. In this regard, the un-user friendly interfaces may be, at many companies do not have sufficient good designers and
least, partially related to product configurator complexities. developers. In this regard, it will be beneficial to companies,
especially these that design and develop configurators in house, for
having sufficient well-trained system designers and developers.
3.3 Issues potentially influencing the These designers and developers bring companies additional IT
effective application of product capacities and capabilities. Developing such IT capacities and
configurators capabilities can be also justified by other issues. The fact that
products keep evolving necessitates continuous maintenance and
One question in the questionnaire asked respondents for the barriers,
upgrading to be performed (Section 3.2). Caused by its complexity,
which may potentially prevent them from effectively applying
configurator maintenance and upgrading are not easy tasks and
product configurators in the future. The results here are consistent
difficult to perform. In addition, if they are not well performed on-
with these discussed earlier. The earlier results show that companies
time, companies may delay product configuration, production, and
have difficulties in designing and developing product configurators
delivery. This may, in turn, cause companies to lose customers. In
because of the lack of technical IT staff. Similarly, the lack of IT
this regard, sufficient, well-trained system designers and developers
staff also appears to be a major barrier for companies to effectively
can also contribute to configurators’ continuous maintenance and
use product configurators in the future. The fact that products keep
upgrading.
evolving is one of the three difficulties in using product
Organizational redesign. Product configurators’ application
configurators is also acknowledged as one barrier for future use.
brings many changes to companies existing activities, processes, and
Two additional barriers, including (i) the unclear customer
functional units (Sections 3.1.2 & 3.1.3). While simply reorganizing
requirements and (ii) the unsafe feeling of employees, are brought
the affected units, as what the practice does (Section 3.1.2), may to
up. Due to the linguistic origins, customer requirements are normally
certain degree facilitate product configurators’ application, it is
imprecise and ambiguous (Jiao & Zhang, 2005), In addition, they
insufficient for companies to realize the full benefits of product
often conflict with one another. As product configurators need
configurators (Salvador & Forza, 2004). In fact, the communication
articulated customer requirements, the ambiguous and conflicting
difficulties (Section 3.2) lend themselves to this point. In accordance
requirements will negatively affect the effective application of
with the tasks and functions that product configurators perform,
product configurators. As a matter of fact, during the initial
companies should reorganize their business processes and structures
questionnaire pretest, some of the 5 company representatives
by reallocating the responsibilities of each individual employee and
indicated this. As product configurators execute activities, which are
functional unit. The reorganization should be performed such that
carried out earlier by the employees, the affected employees
each employee has a clear vision for his activities, tasks, and
perceive product configurators as a menace to their positions inside
responsibilities. This is the same for functional units. Besides,
the companies (Forza & Salvador, 2002). In this regard, the unsafe
information exchange protocol and procedures need to be
feeling of employees may become an obstacle for the effective
(re)designed such that communication difficulties in applying
application of product configurators in the future.
product configurators can be eliminated. At last, as one of the
In summary, the largest barrier is the continuous evolution of
potential barriers for effective configurator application in the future
products, as pointed out by 75% of the respondents. The other
lies in unclear customer requirements, some efforts in organization
barriers include (i) the lack of technical IT staff for maintaining the
redesign may be directed to the suitable tools, techniques, systems,
configurators (seen by 47% of the respondents), (ii) the unclear
etc and the related issues for obtaining clear customer requirements.
customer requirements (perceived by 47% of the respondents), and
Top-down support and company-wide engagement. As with the
(iii) the unsafe feeling from the employees because of the
implementation of any new technologies, the implementation of
possibilities of losing jobs (agreed by 34% of the respondents).
product configurators needs continuous support and commitment
from all levels, especially the top management level, in a company.
4 DICUSSIONS The support and commitment is very important for completing the
necessary organization changes (see above) and for successfully
Along with the benefits achieved, product configurators’ application implementing product configurator projects. The literature shows
brings many additional requirements and changes to companies’ that the lack of long-term commitment is one of the main reasons for
existing way of doing business, as shown in this study. While the the failure of many technology implementation projects (Bergey et
changes and requirements may not be perceived beneficial, they al., 1999). As the employees including the middle management level
open up opportunities for companies to improve the new way of have a tendency to resist changes (Paper & Chang, 2005), regular
doing business, which involves product configurators. Based on data encouragement and incentives from the top management level are
analysis and results, this study highlights three areas for required to remove employees’ hostile attitude towards the
investigation: (i) IT capacity and capability enhancement, (ii) application of product configurators. Once the employees positively
organization redesign, and (iii) top down support and company-wide look at product configurators’ application, they are willing to accept
engagement. and implement organization changes. Perceived by companies, the
IT capacity and capability enhancement. Product configurators employees’ unsafe feeling for losing jobs is one of the important
are basically IT systems. The optimal design and development of barriers potentially preventing companies from effectively applying
these systems will bring many advantages to companies, such as the configurators in the future (Section 3.3). To encourage the
configuration of optimal products, the cut-down of configuration employees and remove their unsafe feelings, the top management
Juha Tiihonen, Andreas Falkner and Tomas Axling, Editors 8
Proceedings of the 17th International Configuration Workshop
September 10-11, 2015, Vienna, Austria
level may create more training activities. With these training Artificial Intelligence for Engineering Design, Analysis and
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investigated in the future, such as in accordance with the major
configurator tasks, who should be responsible for a configurator Appendix: A summary of the questionnaire
project and how they can better lead such a project, what are the General issues:
configurator maintenance tasks and how can these tasks be better 1: How long have the configurator been in use.
performed. At last, while the initial results in this study show some 2. How many types of products are the configurator used for.
trends, further work is needed to investigate differences between
Product configurator applications:
small and large companies and between business-to-business 1. Which tasks are performed by the configurator.
companies and business-to-consumer companies. 2. Who are the users.
3. Which functional units were reorganized.
4. Which business process were changed.
REFERENCES 5. Which changes were made to other computer systems.
[1] J. Bergey, D. Smith, S. Tiley, N. Weiderman and S. Woods, 6. Did you layoff/hire full time employees.
Why reengineering projects fail, Carnegie Mellon Software
Performance of product configurator applications:
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1. The percentage of increased sales volume.
(1999).
[2] C. Forza and F. Salvador, Managing for variety in the order 2. The percentage of increased correct sales orders.
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Economics, 76, 87-98, (2002). 5. The percentage of reduced order processing time.
[3] A. Haug, A software system to support the development and 6. The percentage of reduced sales delivery time.
maintenance of complex product configurators, International Difficulties in implementing product configurator project:
Journal of Advanced Manufacturing Technology, 49, 393-406, 1. The difficulties in designing the product configurator.
(2010). 2. The difficulties in developing/maintaining the configurator.
[4] A. Haug, L. Hvam and N.H. Mortensen, A layout technique for
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configurators on lead times in engineering-oriented companies,
9 Juha Tiihonen, Andreas Falkner and Tomas Axling, Editors
Proceedings of the 17th International Configuration Workshop
September 10-11, 2015, Vienna, Austria
1. The continuous evolution of products.
2. The lack of technical staff for maintaining the configurator.
3. Customer requirements are rather unclear.
4. The unsafe feeling from the employees because of the possibility
of losing jobs.
Juha Tiihonen, Andreas Falkner and Tomas Axling, Editors 10
Proceedings of the 17th International Configuration Workshop
September 10-11, 2015, Vienna, Austria