PLM Library · Book
Design Rules, Volume 1
The Power of Modularity
- Author
- Carliss Y. Baldwin, Kim B. Clark
- Publisher
- MIT Press
- Year
- 2000
Summary

Baldwin and Clark explain modularity as an economic force: how splitting a design into modules connected by visible design rules creates options, enables parallel work and changes the structure of industries.
Building on the history of the computer industry — above all IBM's System/360 — they develop the theory of modular operators (splitting, substituting, augmenting, excluding, inverting, porting) and show how modularity in design leads to modularity in organizations and markets.
Our verdict
Recommended reading for the theory behind modularization. Demanding but foundational: it explains why modular architectures create value, not just how to draw them — essential background for serious platform and modularity work.
Who should read it
- —Product architects and strategists working on platforms and modularization
- —Executives evaluating the business case for modular product families
- —Researchers and students of innovation and industry evolution
How it relates to your work
- —Provides the economic rationale for modular product architectures and interface standards.
- —The design rules concept clarifies what must be fixed and managed centrally — relevant to configuration and architecture management in PLM.
- —Explains the organizational consequences of modularization decisions.
Keep in mind
- —Dense economics; not a practical handbook — pair it with method-oriented modularization literature.
- —Examples come from the computer industry; translation to mechanical products requires thought.