In their quest to manage the complexity of offering greater product
variety, firms in many industries are considering platform-based
development of product families. Key in this approach is the sharing of
components, modules, and other assets across a family of products.
Current research indicates that companies are often choosing
physical elements of the product architecture (i.e.,
components, modules, building blocks) for building platform-based
product families. Other sources for platform potential are widely
neglected. We argue that for complex products and systems with
hierarchic product architectures and considerable freedom in design, a
new platform type, the system layout, offers important
commonality potential. This layout platform standardizes the
arrangement of subsystems within the product family. This paper is
based on three industry case studies, where a product family based on a
common layout could be defined. In combination with segment-specific
variety restrictions, this results in an effective, efficient, and
flexible positioning of a company's products. The employment of
layout platforms leads to substantial complexity reduction, and is the
basis for competitive advantage, as it imposes a dominant design on a
product family, improves its configurability, and supports effective
market segmentation.