Product Development Anxiety: A Contingency Planning Model for Innovative Production Companies

Abstract

This paper investigates the possible failure modes of the product development process in production companies that are active in the B2C markets with a focus on household products. Since these cases require short lead times and are difficult to differentiate, in many instances the result will not be the desired one and could affect profitability for a season or for good. A model of these possibilities is created and an approach to plan contingencies for their solutions is proposed in the article. The main guideline is to switch from failure probability determination to accepting failure as inevitable and using digital solutions to reinforce the development process to offset its impact. For this goal, an Industry 5.0 Abatement Factor (abbreviated IFAF) is introduced in the contingency planning approach, which factors in the evaluation of the low cost of digital instruments and the proper mix of Technology, Humans, and AI (abbreviated THAI). The new working procedure based on these concepts and their interlinkages is discussed based on specific examples.