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Problem

Evaluate this statement: “To increase the speed of the newproduct- development process, a firm might follow one strategy for unpredictable projects and an entirely different one for more predictable ones.”

Step-by-step solution

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Step 1/3

To increase the speed of the new product development process, organizations generally use “Experimental Strategy” for unpredictable projects and “Compressed Strategy” for predictable projects.

Step 2/3

• Experimental Strategy for Unpredictable Projects-

Generally experimental strategy is used to speed up the product development of uncertain projects.

Because of market environment and rapidly changing technologies, the product development process is highly uncertain. So to speed up the product development it is essential to use real time interactions, multiple design iterations, experiments, testing and should have flexibility, which is the key concept of experimental strategy for unpredictable projects.

Step 3/3

• Compressed Strategy for Predictable Projects-

If the market environment and technologies are well known and they are not changing rapidly then compressed strategy is used to speed up the product development.

In this strategy product development follow a predefined process of certain steps which should be followed and completed in the defined manner and time.