Criteria changes across product development stages

This paper analyzes the criteria used at making go/no-go decisions at major points in the product-development process, taking each phase separately. First, the variation in the sets (market, product, and financial) criteria used from one phase to another is studied. Second, the specific criteria deployed are analyzed. The results of the decision-systems interviews conducted show shifts in weights among the three sets of criteria as the development cycle progresses. In terms of criteria, the product-development process can be summarized using the following three questions in this specific order: 1) “Is there a market for the concept?” 2) Can the concept be transformed into a concrete product?” and 3) “Can the concrete product be manufactured and marketed profitably?” The analysis of specific criteria reveals that the use of some criteria is restricted to one particular phase, whereas some are used at every decision-making point. Also, the orientation of the company in question will cause variation among specific criteria use and weighting. Some factors, however, are quite universally applicable.     

Risk in product development stages

Risk perceptions have an important bearing on the product-development process. The product-development literature reports risk-level and cost increases as a project advances in the R&D pipeline, but no quantification of these concepts is available. Data are provided on how people involved in the product-development process view the relationship between cost and risk escalation. The results are discussed in terms of how companies manage risk and uncertainty in product development.