Unlocking the Value of Satellite Systems Through Modularity: A Reference Framework

In the evolving ecosystem of the New Space Economy, characterized by a pressing need for cost- and time-efficient solutions, the demand for innovative satellite design and development practices is growing. Modularity, extensively explored outside the satellite industry as both a design concept and a strategic paradigm, has seen relatively limited adoption and implementation in satellite systems. While traditional approaches to satellite architecture rely heavily on extensive customization and integral design, recent commercialization and market-driven imperatives within the satellite industry have created an environment keen to explore more modularized and standardized approaches. This shift transcends technical considerations, emphasizing the imperative to understand the broader business implications associated with modularity in satellite systems. Therefore, a comprehensive exploration of the intricate dynamics of value creation and capture is essential to navigate a rapidly evolving ecosystem. To this end, it is necessary to move forward the body of knowledge in two directions: (i) translating the existing knowledge on modularity in complex product systems to the satellite industry; (ii) investigating how to systematically assess generated value from modularity adoption. For this study, we introduce the conceptual framework “Levels of Technological Modularity,” which maps the evolution of technological modularity from its purpose as a technical tool aimed at design optimization to its potential as a driver of business model innovation. Building upon this conceptual framework, we develop a reference framework designed to guide the development of a value assessment model for technological modularity in complex product systems. The reference framework consists of four systematic steps to identify and categorize key values, key value indicators as well as their respective value drivers and value enablers for each modularity level. The resulting model will unveil the value of technological modularity and reveal the underlying mechanisms through which satellite manufacturers can capitalize on this value, translating it into tangible economic opportunities and thus taking better strategic decisions about modularity adoption. By providing a structured methodology, this work expands the methodological discourse on building and framing assessment models, offering insights into how these models can be applied to enhance strategic decision-making in complex product systems in general and in satellite systems in particular.