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diverse set of derivative products faster and more
cheaply than if they were stand-alone products. Platform
innovation has allowed Nissan to resurrect its fortunes in
the automotive industry. (Note: Nissan is suffering along
with the other auto manufacturers today. This example
refers to how it came back to become the number three
world automaker in the last decade.) Nissan was able to
use a common set of components to create a line of cars
and SUVs with different personalities, performance, and
positioning in the eyes of customers. Nissan uses
essentially the same small block 3.5-liter V6 engine to
power the upscale model of its midsize sedan (Altima),
its large sedan (Maxima), its minivan (Quest), its sports
coupe (350Z), and its luxury sedans (Infiniti G and M
series). Clever modifications of the common engine allow
it to produce anywhere between 245 and 300 horsepower,
creating enough distinctiveness between the cars while
gaining efficiency advantages. While other companies,
such as General Motors, have employed this platform
approach, Nissan has done a competent job of avoiding
homogenization of its offerings, one of the challenges of
platform strategies.
3. Solutions. A solution is a customized, integrated
combination of products, services, and information that
comprehensively addresses a customer problem. Solution
innovation creates value for customers through the
breadth of assortment and the depth of integration of the
elements of the solution. Consider John Deere’s
Agricultural Management Solutions (AMS) business.
Combining products and services like mobile computers,
a GPS-based tracking system, software, and services,
AMS provides farmers with an end-to-end solution to
improve the operations of sowing, tilling, and harvesting,