The product development process addresses many types of risk. These include technical
risk (Will the product function properly?), market risk (Will customers like what the team
develops?), and budget and schedule risk (Can the team complete the project on time an
within budget?). High-risk products are those that entail unusually large uncertainties related
to the technology or market so that there is substantial technical or market risk. The generic product development process is modified to face high-risk situations by taking steps to address the largest risks in the early stages of product development. This usually requires completing some design and test activities earlier in the process. For example, when there is great uncertainty regarding customer acceptance of a new product, concept testing using renderings or user-interface prototypes may be done very early in the process in order to reduce the market uncertainty and risk. If there is high uncertainty related to technical performance of the product, it makes sense to build working models of the key features and to test these earlier in the process. Multiple solution paths may be explored in parallel to ensure that one of the solutions succeeds. Design reviews must assess levels of risk on a regular basis, with the expectation that risks are being reduced over time and not being postponed.
References and Bibliography
Many current resources are available on the Internet via www.ulrich-eppinger.net
Stage-gate product development processes have been dominant in manufacturing firms for the past 30 years. Cooper describes the modem stage-gate process and many of its enabling practices.
Cooper, Robert G., Winning at New Products: Accelerating the Process from Idea to Launch, third edition, Perseus Books, Cambridge, MA, 2001.
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