Harmonizing Innovation and Efficiency: Unveiling the Strategic Confluence of Mass Customization and

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Volume: 12 Issue: 08 | Aug 2025 www.irjet.net p-ISSN: 2395-0072

Harmonizing Innovation and Efficiency: Unveiling the Strategic Confluence

of Mass Customization and Frugal Engineering with Design Principles

Tushar Tiwari1

1Research Scholar (Ph.D.), Indian Institute of Technology Kharagpur, West Bengal, India, 721302

Abstract - A significant paradigm change in product manufacture and customer involvement has been brought about by mass customization. Two notable examples are Nike's innovative NikeiD platform and Dell Technologies' successinletting userscustomizetheirownPCs.Accordingto recent polls, there is a high level of customer desire in personalization, which could lead to substantial market expansion. The study explores how cost efficiency and design flexibility can work together, emphasizing how common design concepts like modularity, scalability, simplicity, and userparticipationcansupporttheseobjectives.Customization increases brand loyalty, helps businesses stand out in a crowded market, and can save money. In a time when customersvaluecustomizedmoreandmore,embracingmass customizationcanboostsales,customerloyalty,andbusiness success. In the end, the study presents the combination of economical engineering with mass customisation as a gamechanging approach to the design and development of nextgeneration products.

Key Words: MassCustomization,FrugalEngineering,Design Thinking,InnovationEngineering,Sustainability

1.INTRODUCTION

Mass customization is one paradigm shift that has permanently changed how businesses interact with their clientsandproducegoodsinthealwayschangingbusiness and consumer preferences landscape. Redefining client loyaltyandrevolutionizingindustries,thisgame-changing idea sprang to prominence in the 1990s. Businesses that have cleared the path and demonstrated the amazing potential of personalization include Nike and Dell Technologies (2). This article explores the revolutionary paradigm change that mass customization has brought about,providinginsightsintohowitaffectscustomerloyalty, profitability,anddifferentiationinanageofincreasingprice transparency.Businessesthatembracemasscustomization are well-positioned to prosper in an increasingly individualizedworldasthedigitalagecontinuestochange consumerexpectations(3,4)

Theconcept'screator,DellTechnologies(DELL),providesthe bestcasestudyonmasscustomization.DellstartedgivingPC consumers the option to "build their own" devices in the 1990s,whichbasicallyallowedthemtocustomizetheirPCs totheprecisespecificationstheywanted(5,6).Dellusedthis tactic with great success. The company was able to attain greatsizeandproducestrongprofitabilitylevelsbecauseit wasable tosell enormous quantitiesof PCsandsource its supplierswisely.Dell'smasscustomisationtechniquehelped

Volume: 12 Issue: 08 | Aug 2025 www.irjet.net p-ISSN: 2395-0072

thembecomeoneofthemostwell-knownPCmanufacturers in the world (7). These levels of profitability give the impressionthatDell'smasscustomizationstrategymaybe hurtingratherthanhelpingreturns.Theissue,though,isthat Dell's true profitability is distorted by the as-reported measures (8).Accordingtouniformmetrics,thecompany has produced steady and increasing profits since 2015. In particular, Dell was able to increase its return on assets (ROA) from 24% in 2015 to even higher levels of 41% in 2021.

1.1. Tearsheet for Dell Technologies Inc.

According to Dell Technologies Inc.'s (DELL:USA) Uniform Accountingtearsheet (1),thecompany'sUniformP/Etrades at11.1x,belowtheglobalcorporateaverageof25.2xbutnear its own historical average of 9.5x. Low EPS growth is necessary to maintain low P/Es. Having stated that, Dell Technologies recently demonstrated a 14% Uniform EPS increase (9). Generally speaking, the stock and valuation recommendations made by Wall Street analysts offer very littledirectionorinsight.Nonetheless,WallStreetanalysts typically include pertinent information in their short-term earningsprojections.

We translate Wall Street's GAAP earnings projections into Uniform earnings projections. When we do this, the Wall Streetanalyst-drivenprojectionforDellTechnologiesisa3% EPSdeclinein2023afteraninsignificantEPSrisein2022 (10). We may utilize earnings growth valuation criteria to back into the necessary growth rate to support Dell Technologies' $89 stock price based on the current stock market valuations. The term "market embedded expectations" is frequently used to describe this. Utilizing masscustomisationandaneconomicalengineeringapproach tocommercializetheseitems,thistechniqueexpandstheuse of Dell technologies. The brand improves worker opportunitiesanduserservice(11)

At the moment, the company's valuation is based on the assumptionthatUniformearningswilldeclineby10%ayear overthenextthreeyears.Through2023,WallStreetanalysts anticipate that Dell Technologies' earnings growth will surpassthecurrentstockmarketvaluation(12).Additionally, thecompany'searningspowerisseventimeshigherthanthe corporate average over the long term. Additionally, cash flows and cash on hand exceed all of its commitments, including capital expenditures and debt maturities. When combined,theyindicatealowcreditrisk(13).Insummary, DellTechnologiesistradingbelowitsaveragepeervaluations despitehavinguniformprofitgrowththatismuchabovepeer averages. For skilled workers who possess a precise understanding of the fundamentals of technology, Dell technologyimprovestheopportunity(14).

2. METHODOLOGY

2.1 Success in product customization

2.1.1 Scope

Less than 10% of online buyers have attempted customisationoptions,while25%to30%areinterestedin doingso,accordingtoaBainsurveyofover1,000shoppers. Althoughthewholepotentialofpersonalizationisdifficultto estimate, a 25% personalized footwear market might generate$2billionannually(15).

2.1.1 Illustration

consumers who developed their own shoes, for example, gave businesses a 50% higher Net Promoter ScoreSM (NPS®),acommonmetricforgaugingcustomerloyalty,than consumers who regularly purchased items from the same manufacturer,accordingtoourresearch.Generallyspeaking, higher NPS corresponds to increased lifetime customer value,sales,andreferrals.

2.1.3

Requirement

More than 1,200 global executives from a variety of industries participated in a recent Bain poll, and 67% of themsaidtheythoughttheircustomersweregrowingless brandloyal.AtatimewhentheInternetisquicklygenerating high pricing transparency and making it simpler for customerstocompareitemswithstandardcharacteristics, customizationalsoaidsbusinessesinsettingtheirproducts apartfromthoseoftheirrivals(16).49%ofmobilephone owners use their device to compare costs, and there are moreandmorepricecomparisonappsavailable,according toGoogle.

Fig -3: Customerswhocustomizeaproductaremore engagedandspendmorethanconsumerswhobuy standardproducts

Volume: 12 Issue: 08 | Aug 2025 www.irjet.net

2.2 Business Impact of Investing in Innovative Customization

Companiesthatarebestintheirclassrecognizethebenefits of optimizing production capacity. They have a particular interestintwotypesofcustomisationthatentailalteringthe actualproduct:transparentcustomizationandcollaborative customization.Theabilitytomodifyitemsastheyarebeing manufactured is a crucial component of emerging smart manufacturing technologies. This change decreases downtime and makes businesses more agile. In actuality, businesses that have already adopted some kind of customizationreporta62%reductioninsavingsduetothe decreaseinproductiondowntime.Thereductionforother companiesisonly49%(17,18).

3. RESULTS & DISCUSSIONS

3.1.

3.1.1

Theideaofmasscustomizationwasinitiallypresentedby Nikein1999(Team,2011).WithNikeiD,thefirmintroduced the first successful platform in the industry, allowing its potential customers to buy shoes by personalizing their comfort, color, and style. Also see this report from the ConsumerBarometer,whichwasconductedbyKPMGand IFHCologne(Muehlbauer,2017)andincludedasampleof about 500 customers who were interested in tailored products.Threecustomersoutoftenhavealreadycreateda designfortheproducttheyrequirebasedontheirpersonal preferences. Of those interviewed, 55% of seasoned consumersarewillingandsignificantlyabletopayagreater priceforcertainthings,and43%ofthemanticipateseeing more customization offerings. Businesses who used customizationhada62%boostinperformanceinthelast twoyearsalone,whilethosethatdidnotsawa51%increase (Gaffney,2019).

3.1.2 Harley-Davidson

Thewell-knownmotorcyclemanufacturerHarley-Davidson (H-D)respondedtoissueslikeanagingcustomerbaseand theneedforcustomizedbikes.Masscustomizationgaveway to mass personalized production (MPP). This required significantautomation,spacereduction,andmanufacturing restructuring,whichledtoa50%workerdecrease.Versatile, smart production is now feasible because to Industry 4.0 ideaslikeIoT,CPS,smartsensors,andM2Mcommunication. As a result, many motorbike models with mass customizationmaynowbeproducedonasingleproduction line(19)

3.1.3 My Virtual Model Inc.

The Montreal-based company My Virtual Model Inc. is revolutionizingthepurchasingprocessitself.Customersmay usethesoftwaretocreatevirtualversionsofthemselves,or "avatars,"whichtheycanusetotestoutthingsfromstores like Sears, Best Buy, Levi's, and adidas. The service has already attracted over 10 million users, and the initial outcomesareremarkable:AccordingtoLand'sEndInc.,the averageordervalueincreasedby15%,andtheconversion rateincreasedby45%(20)

About 30% of the men and 40% of the women surveyed indicated a great interest in buying customized shoes and werewillingtopayapremiumpriceforthem,accordingtoa studydonebyEUROShoE.

4. CONCLUSION

Masscustomisationhasbecomeatransformativeforceinthe dynamic world of business and consumer preferences. In ordertohighlightitspotentialtoincreaseprofitabilityandset businessesapartinaworldofpricetransparency,thisarticle hasexamineditshistoricalinfluenceandhighlightedsuccess stories such as Dell Technologies and Nike. With polls

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Volume: 12 Issue: 08 | Aug 2025 www.irjet.net p-ISSN: 2395-0072

indicating potential billion-dollar industries driving consumer interest in customization, it is evident that personalizationincreasescustomerlifetimevalue,sales,and loyalty. As evidenced by Harley-Davidson's shift, advancementsinsmartmanufacturingandtechnologieslike IoT and CPS are essential. Businesses such as My Virtual ModelInc.areusingvirtualavatarstoredefineshopping,and EUROShoE's research highlights the need for personalized goods. Adopting mass customization is now strategically necessary rather than optional, setting up companies to prosperinapersonalizedfuturewheregoodsaretailoredto eachindividualcustomer.

ACKNOWLEDGEMENT

TheauthorsacknowledgethePAMLabofIITKharagpur, wheretheideationofthisresearcharticlehappened,andthe facility provided by the PAM Lab was great for exploring moreaboutthisresearcharticle.

REFERENCES

[1] Tearsheetoftheday.ValensResearch.(2022a,October 12)

[2] Mass customization seems like a logistical nightmare, buttoday’sPCmakershowshowprofitablethebusiness modelcanbe.ValensResearch.(2021,June23)

[3] Spaulding,E.,&Perry,C.(2018,May30).Makingit personal: Rules for success in product customisation Bain.

[4] Asnapshotofmasscustomizationtrends - business2 community.(n.d.).

[5] Salvador, Fabrizio & Martin de Holan, Pablo & Piller, Frank.(2009).CrackingtheCodeofMassCustomization. SloanManagementReview.50.

[6] Frank T Piller & Melanie Mu¨ller (2004) A new marketing approach to mass customisation, International Journal of Computer Integrated Manufacturing, 17:7, 583-593, DOI: 10.1080/0951192042000273140

[7] Dan,P.K.,Tiwari,T.,&Basu,P.(2022,November).Fuzzy front end and design thinking integrated frugal innovationframeworkforfeatureconceptgenerationin a product: Portrayal for a wheelchair. InInterdisciplinaryConferenceonInnovation,Desgin, Entrepreneurship, And Sustainable Systems(pp. 301316).Cham:SpringerInternationalPublishing.

[8] Tiwari, T., Rudra, C., Mathur, A., & Dan, P. K. (2024, February). Development of Motorized Wheelchair Bearing Safety Feature in Electronic Control Module.

In202410thInternationalConferenceonMechatronics andRoboticsEngineering(ICMRE)(pp.136-142).IEEE.

[9] Tiwari,T.,Sharma,K.,Rudra,C.,Singh,M.,&Dan,P.K. (2024,October).Automatizingstep-climbingfeatureina wheelchair via digitized movement control for valuesensitive market. InIET Conference Proceedings CP885(Vol.2024,No.11,pp.47-53).Stevenage,UK:The InstitutionofEngineeringandTechnology.

[10]Tiwari, T., Sharma, V. K., & Dan, P. K. (2024). Safety Management and Human Factors, Vol. 151, 2024, 6977.SafetyManagementandHumanFactors,69.

[11]Tiwari,T.,&Tiwari,N.(2023).InvestigatingtheImpact of Incorporating Sustainability Consideration into the ProductDesignProcess.THEPROGRESSJOURNALS

[12]Tiwari, T., Garg, T., Singh, G., Mishra, S., & Guleria, K. (2024).OptimizingFoodUtilization:ASmartInventory Management and AI-Predictive Analytics in Reducing FoodWaste.InternationalJournalofScienceandSocial ScienceResearch,2(3),165-170.

[13]Tiwari,T.(2024).EmpoweringentrepreneursinIndia: Addressingchallengesforgrowth.InternationalJournal ofEngineeringResearch&Technology,13(12),1-10.

[14]Tiwari,T.,&Dubey,S.(2025).DevelopmentofGamified Learning Modules for Child Rights Education.InternationalJournalofRecent

[15]Tiwari,T.,Sharma,V.K.,&Dan,P.K.(2024).Reliability and Safety Embedded Design Thinking and Frugal Engineering-based Approach in Assistive Product SystemEngineering.

[16]Prabhakar, S., Tiwari, T., Prabhakar, P., Banerjee, S., Pasayat,A.K.,Gonela,S.,...&Nimesh,A.(2025).Frugal Innovation (FI): A Catalyst for Inclusive Economic Growth and Sustainable Entrepreneurship Development. InEntrepreneurial Opportunities in Disadvantaged Rural Communities(pp. 281-326). IGI GlobalScientificPublishing

[17]Tiwari, T., Tiwari, S., & Dubey, S. (2025). SOCIALLY CONSCIOUSFRUGALDESIGNSOLUTIONS:INNOVATING FORTHENEEDSOFHOMELESSINDIVIDUALS.

[18]Tiwari, T., & Dubey, S. Disruptive Innovation in Ecommerce:Evolution,ImpactandFutureTrends.

[19]Fogliatto,F.S.,DaSilveira,G.J.,&Borenstein,D.(2012). Themasscustomizationdecade:Anupdatedreviewof the literature.International Journal of production economics,138(1),14-25.

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Volume: 12 Issue: 08 | Aug 2025 www.irjet.net p-ISSN: 2395-0072

[20]Mourtzis,D.,Vlachou,E.,Giannoulis,C.,Siganakis,E.,& Zogopoulos,V.(2016).Applicationsforfrugalproduct customization and design of manufacturing networks.ProcediaCIRP,52,228-233.

BIOGRAPHIES

The author (Tushar Tiwari) is a ResearchScholarpursuingaPh.D.in the Research domain of Product Design and Development with an area of interest in Assistive device designandtechnology development withFrugalInnovationsincethe2nd of August 2021 at IIT Kharagpur, West Bengal, India. The author completedhisM.Tech(Postgraduate) degree from the Industrial Design departmentatNITRourkela,Odisha, India. Before that, he had 2 years of Teaching Experience at Aarya AcademyPvt.Ltd.,Bilaspur