NPD RISKS

 Market related risks

 Completion risks
 Institutional risks

New product has a very high failure rate.

 Products fail, not because of technical shortcomings, but due to absence of market.
 Over 60% of new product fail before entering the market, and out of the remaining
40% that do see the ray of light, 40% fail to yield profit and are withdrawn from the
market.
 Risk can be in form of market, technical, or organizational issues. Risk analysis solves
the problem through flexible modeling, primary and secondary research
 Companies operate in a dynamic business environment which forces them to adopt
risk management measures.
 The business environment is both external and internal to a company and an adverse
change in any of the above-mentioned constituents can increase the risk levels for
the company

PRM approach in automobile

 Budget contingencies
 Schedule buffers
 Compromise to Specifications
 Commercial viability risks
 Competitor risks
 Consumer acceptance & Marketing risks
 Intellectual property risks
 Manufacturing technology riskk
 Organization & Project mgmt risks
 Product family & Brand positioning risks
 Product technology risks
 Public acceptance risks
 Screening & Appraisal risks
 Supply chain & Sourcing risks
 Trade customer risks

Himanshu Bajpai
1605015
PM03