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Technology and economics trends are dramatically changing the nature of new products and hence, new product development.
The technology trend is ever increasing rates of complexity change and therefore increased performance and features in new products. New products thus supplant older ones more quickly, shortening the period of high-margin sales for most products.
The economic trend is increasing global competition in all markets
(manufacturing, non-tangible, and services); so that more companies
reach local markets (manufacturing, non-tangible and services);
so more companies serve markets. The result is more innovation in
a given market and lower margins per sale. For each competitor,
the ability to realize (or develop) products with the right feature
set, price and quality in a timely way and with high margins is
a critical strategic capability.
Therefore, a company's product realization process helps to determine
its survival and, if executed properly, is a key element to its
prosperity.
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