Comparing product development processes and managing risk

Product Development Processes (PDPs) require careful design to reduce development time, create better products and manage the risks of bringing new products to market. This paper investigates the relationship between product development risk and PDP management. We begin by identifying risks and proposing several iteration- and review-based metrics by which PDPs can be effectively identified and compared. Data from ten company case studies demonstrate the utility of the proposed metrics and exemplify how different PDPs manage different risks. The cases also show that software companies face different risks and employ more flexible PDPs than manufacturing companies. We conclude that PDPs vary more than previously documented, that the proposed metrics are useful in distinguishing PDPs and that companies can tailor their PDP designs to suit their unique risk profiles.