A Study On Selection Of Integrator And Incentive Of Module Maker Based On The Theory Of Modularity

With the continuous development and innovation of information technology, modularity is becoming a new method to deal with complicated systems, and being extensively used in industries such as computer (software and hardware), IC, automobile, financial services. By separating and integrating modules according to special design rules, it can manipulate complicated systems and processes. Modularity is not only used in design and production, it has also being used in organization to form new competitive advantages since 1990s. It becomes the essence of new industrial structure and a new paradigm of industrial organization. A modular system is composed of systems integrator and module makers. Systems integrator deals with system information, and module maker deals with individual information. Systems integrator provides module makers with high power incentive mechanisms which improve the velocity and efficiency of innovation. This paper studies on the selection models of systems integrator based on the theory of modularity. In addition, it also takes Jiangsu software industry as an example for an application in order to better use of modularity for the development and innovation of industry.Chapter 1 is introduction. Chapter 2 reviews the theory of modularity. Chapter 3 presents two kinds of systems integration models based on the theory of modularity, including venture capitalists integration model and lead firms integration model. It considers the mechanisms especially the incentive mechanisms of the two models, and demonstrates the innovation and evolvement of a modular system. From the perspective of structure characteristic, information processing, incentive form, systems integration efficiency and essential condition, it compares the two systems integration models. Then Chapter 4 mainly concerns the development of Jiangsu software industry, analyses the selection of systems integrators, and indicates that both of the two are needed. And there also should be a concerted effort of government and industrial intermediary devoted to improving the two integration models. Finally, it summarizes the essence and advantages of modularity, the two integrators and the role played by government and industrial associate in systems integration.