Establishing Quantitative Economic Value for Features and Functionality of New Products and New Services (CHAPTER N)
Name
PDMA Toolbook Sept 2003.pdf
Size
157.33 KB
Format
Adobe PDF
Checksum (MD5)
1f72e528c088abf23779c5c22bd09229
Author(s)
Otto, Kevin
Tang, Victor
Seering, Warren
Date Issued
September 13, 2003
Publisher
PDMA Toolbook II
Abstract
This chapter has two key themes: (1) a list of customer needs is interesting, but insufficient for many development decisions, (2) establishing a quantified, dollar value for each requirement is more helpful. To that end, we present an approach and method to establishing the quantitative monetary value for new product features and performance. This approach is targeted to product development managers and engineers engaged at the “front-end” of the product development process when the decisions about selection and trade-off of product functions and features are made. This approach examines the customer’s business operations and essentially establishing their business case for your product down to the feature and performance levels. This provides for much better trade-off decisions in new product development. This approach also helps to identify whitespace opportunities, those new product and/or service opportunities that are not being served by any current product. Moreover, because the methodology is fine grained, the whitespace opportunities are resolved into clear and actionable product development projects.
Subjects
customer needs
development decisions
quantitative monetary value
whitespace opportunities
MIT Department
Massachusetts Institute of Technology. Center for Innovation in Product Development
Persistent DSpace Link
