Economic-Decision-Making in New Product Development

Abstract

Economic decisions for a new product can impact any subsequent development, as well as the launching of the product. Furthermore, unsuccessful decision-making can result in missing business opportunities or spending more money on rework. This article investigates economic decision-making in the product development process. It also enhances the understanding of the process, the difficulties involved, and how to improve decisions during new product development. Thus, this study can serve as a reference when support methods for economic decisions are being initiated. Industrial engineers and engineering managers use economic decision-making for new product development. The results of this study indicate that economic decisions are vital to new product development, as they also bring radical changes in the fields of IE/EM/PM. The engineering management practitioner will understand the importance of these topics, their relevance to engineering management, and how engineering managers can integrate these ideas into their operations and project management lifecycle and project management settings. Economic decision-making models in IE/EM/PM should replace traditional non-scientific methods because they are inaccurate and speculative at best. Overall, by using the economic models, the engineering manager is prioritizing on the long-term prospect that the decision will have.