m2

2. Many companies use customer-
driven engineering to develop
new products, incorporating
customer preference in the final
design.

3. R&D outcomes are so uncertain
that it is difficult to use normal
investment criteria when
budgeting for new product
development.

4. Some companies simply finance
as many projects as possible
hoping to achieve new winner.

5. While others apply a
conventional percentage-of-
sales figures or spend what the
competition spends.

6. And some decide how many
new product they needs and
work backward to estimate the
required investment.

7. Different companies use
different ways to handle the
organizational aspect of new
product development.

8. Many companies assign
responsibility to Product
Managers. But they are busy in
many existing lines and may
lack the required skill and
knowledge.

9. Some employ new Product
managers.
Some companies have high-
level management committee
charged with reviewing and
approval proposals.

10. Large companies generally
establish a new product
department headed by a
manager with substantial
authority and access to the top
management.