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Product Development Metrics AccentureProduct Lifecycle Management (PLM) Practice Metrics Are An Essential Part of a Healthy Product Development Program Business objectives power metrics … metrics power business objectives What about metrics in the context of Product Development? The mantra for Six Sigma practitioners, You can only manage what you can measure, applies with increasing criticality to New Product Development. Metrics are necessary to understand the current and historical level of product performance, to predict and measure trends and to set goals and reward achievement. Metrics management is A mechanism to facilitate proper decision making A tool to highlight situations and issues On the rise in Product Development, according to a 2004 survey performed by Goldense Group, Inc. (GGI) of 202 companies from a broad range of industries Types of Metrics – Product Focused Types of Metrics – Enterprise Focused FINANCIAL Shareholder value SV = Revenue – Cost – Investment Return on Capital Employed Revenue growth from new products - Organic Profit growth form new products – Organic OPERATIONAL Number of projects Number of personnel Cycle time Cost of development Cost of sustaining Cost of recall / warranty Key Metrics Align Product Performance with Corporate Strategy So, What Are They? Standard Product Development Metrics Sample Product Development Metric – Breakeven Time Sample Product Development Metric – Balanced Scorecard So, What Are They? Non-Standard Product Development Metrics Metrics Solve Business Problems Qualities of Effective Metrics Programs Change Management Is Critical to Metrics Management Questions That Shape a Successful Metrics Program Product Development Metrics In Use Companies that applied integrated product data, portfolio program management, change management, and analytics across the product lifecycle reported significant advantages over those not using automation. Product Development Metrics are fairly immature Pro