5. Example 1
Trade-Off Analysis & Business Priorities:
Sensitivity Analysis
Time
Product
To
Cost
Market
Development Feature
Cost Set
5
Source: P.G. Smith $ D.G. Reinersen in “Developing Products in Half The Time”, Van Nostrand Reinold, 1991
6. Example 2
Better Expensive Than Late
33%
22%
Percent Loss in
Total Profit
3.50%
50 % Development Product Cost 9% Ship Product 6
Cost Overrun Too High Month Late
6
Source: Reinertsen, Donald, McKinsey & Company, “Blitzkrieg Product Development”, Electronic Business Magazine, August 1983
14. “I contend that people like me – CEOs,
CFOs, and other business types – must
adopt the attitude that we, in fact, work
for R&D if we truly want to succeed!”
Leonard Schleifer, CEO, Regeneron
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15. Appendix
Heilmeier's Catechism
George Harry Heilmeier (born May 22, 1936) is an American
engineer and businessman, who was a pioneering contributor to
liquid crystal displays.
credits these observations to G. Heilmeier, "Some Reflections on
Innovation and Invention," Founders Award Lecture, National
Academy of Engineering, Washington, D.C., Sept. 1992.
http://en.wikipedia.org/wiki/George_H._Heilmeier
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16. Heilmeier's Catechism
What are you trying to do? Articulate your objectives
using absolutely no jargon.
How is it done today, and what are the limits of current
practice?
What's new in your approach and why do you think it will
be successful?
Who cares?
If you're successful, what difference will it make?
What are the risks and the payoffs?
How much will it cost?
How long will it take?
What are the midterm and final "exams" to check for
success?
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