One view of innovation is that it proceeds by changing the way things are organized, either by adding, subtracting, or changing components that comprise a system (e.g., organization, product, or service). Modular innovation theory suggests that system, organization, service, and product modularity may allow for complex adaptations and innovations to take place.

1. Explain three benefits of developing modular products and services from a business perspective.
2. Please explain the extent to which a mobile phone is modular, and suggest at least one new feature that could be added (even if not technically feasible today) as a result of changes in customer preferences, needs, or future scientific breakthroughs. In summary, attempt to suggest an innovation for the cell phone as a modular system.