Last weekend, my son dashed through the door, his face shining with joy. He held a pair of very unconventional sneakers, unlike the standard ones you would buy at the sporting goods store. He eagerly showed me every detail, from the custom color scheme to the personalized text on the heel. He had designed the shoes himself.
The intricate design process he described, where he used the vendors’ web portal to customize every detail, reminded me of the remarkable shift happening in manufacturing and consumer products. We have truly come a long way from the time when products were mass-produced and designed to fit everyone the same.
The rise of mass customization
As my son showed me, companies like Nike and Adidas are now offering specialized platforms where customers can design sneakers tailored to their exact specifications. It's not just about aesthetics either – shoe manufacturers are actively developing 3D printing technologies for footwear, which could potentially lead to more customized and sustainable products in the future. This approach can be seen as a win-win. Consumers get products that truly reflect their tastes and needs, while companies reduce waste by producing items on demand rather than in bulk. It's in contrast to the mass production model we have known for decades, where a lot of material and resources are wasted, which leads to more transportation of goods.
AI and digital twins: The next frontier
As I watched my son admire his new sneakers, I couldn't help but think about the technology behind this personalization trend. Artificial intelligence and digital technologies are transforming manufacturing at an astonishing pace. A recent study from Ericsson Industrylab (Figure 1) predicts that over the next decade, 78 percent of decision-makers plan to implement data-driven customized offerings based on machine learning analysis of customer behavior data. This is largely driven by the use of Generative AI applications for content creation, where the usage according to decision makers is expected to increase from 47 percent in 2023 to 78 percent over the next 7-10 years.
Figure 1: Share of decision-makers and employees that say they are already selling/using data-driven customized offerings based on machine learning of customer behavioral data or plan to do so in the future
Even more intriguing is the rise of digital twin technology. These virtual replicas of products allow for design and evaluation before a single physical item is produced. Our Industry Lab research suggests digital twin usage across enterprises will increase from 44 percent of the companies today to 77 percent over the next decade. Imagine virtual fitting rooms where you can try on clothes tailored to your exact measurements or personalized medications designed for your unique genetic makeup.
Beyond sneakers: A personalized future
My son's custom sneakers are just the tip of the iceberg. This mass customization revolution is spreading across industries like fashion, healthcare, and education, potentially reducing waste and increasing customer satisfaction. Here, I will share two more examples from the automotive industry and the healthcare sector.
As a first example, digital twin technology is revolutionizing mass personalization in the automotive industry, allowing manufacturers to create highly customized vehicles efficiently. Audi has been at the forefront of this trend, leveraging digital twins for mass personalization. By combining digital twins with other technologies like automated guided vehicles, AI-driven robots, and machine vision systems, Audi can efficiently produce as many variants of automobiles as there are customers. The process involves creating virtual replicas of vehicles that can be customized and tested before physical production. This allows manufacturers to simulate customer-specific customizations, ensuring that each vehicle meets individual preferences without compromising production efficiency.
Digital twins are also transforming medical care by creating virtual replicas that enable highly personalized treatments. This innovative technology allows healthcare professionals to simulate medical interventions, test potential treatments, and develop customized solutions tailored to individual patients. In prosthetics, 3D printing is now used to produce customized/custom-fitted artificial limbs that align perfectly with a patient's unique anatomy, significantly enhancing comfort and functionality. Similarly, AI-driven nutritional tools analyze personal health data to generate customized diet recommendations, optimizing wellness strategies. The most significant advantage of digital twins is their ability to predict medical outcomes with unprecedented accuracy. By modelling complex biological systems virtually, doctors can now test medications and interventions before applying them in real-world scenarios, substantially reducing patient risks and improving treatment effectiveness. This technological approach represents a paradigm shift from traditional one-size-fits-all medical practices towards truly personalized, data-driven healthcare solutions that prioritize individual patient needs and potential.
What lies ahead?
As we can see, my son’s custom-made sneakers are only one example of the paradigm shift we are witnessing. Mass production gives way to mass personalization, where products and services are as unique as the individuals they serve. But it is not only about retail but also welfare services like healthcare, education, and care. It's a world where technology goes beyond merely increasing speed or cutting costs to deliver genuinely personalized and bespoke solutions. And if my son's excitement over his new shoes is any indication, it's a future we're going to love stepping into, one personalized service or product at a time.
Learn more
Read more about our research insights in the blog post Sustainability: A key to business success today, authored by my colleague Sepideh Matinfar.
Read our full Industry Lab report Envisioning the next level of enterprise digitalization and value creation
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