Decision Making and Valuation Tools for Understanding Uncertainty in New Product Development
Abstract
The degree of uncertainty in managing new product development may be categorized as to whether it is a derivative, platform, or breakthrough product. Dealing with uncertainty is compounded for the breakthrough products. Management techniques and tools are available to aid in dealing with the uncertainty. the stage gate approach in combination with other tools can be used to reduce the uncertainty existing in new product process. This paper examines the techniques available to account for various possible investment decisions at each critical step in the new product development process where the assumption to knowledge ratio is very high. This paper reviews the literature for such decision-making tools, including the real options approach and discovery driven planning while implementing the stage gate approach of the new product development process.
Recommended Citation
M. Gokhale et al., "Decision Making and Valuation Tools for Understanding Uncertainty in New Product Development," 27th Annual National Conference of the American Society for Engineering Management 2006 - Managing Change: Managing People and Technology in a Rapidly Changing World, ASEM 2006, pp. 684 - 691, American Society for Engineering Management, Dec 2006.
Department(s)
Engineering Management and Systems Engineering
Keywords and Phrases
Breakthrough products; Decision tools; New product development stages; Uncertainty
International Standard Book Number (ISBN)
978-160423714-6
Document Type
Article - Conference proceedings
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2024 American Society for Engineering Management , All rights reserved.
Publication Date
01 Dec 2006
