Time to profitability

an antidote to the fallacy of accelerated time to market

In the new product development (NPD) area of the electronics industry, there has been recent emphasis on accelerating time to market by shrinking the product design and manufacturing cycles. This article argues that the goal of bringing products to market quickly does not, of itself, promote profits. Instead, a 'time to profitability' paradigm is offered, and its implications are discussed as played out through the three phases of NPD: innovation, design, and marketing/manufacturing. A Time to Profitability core team takes the product from the idea stage through breakthrough, assisted at crucial points by a support team. Unlike the 'time to market' approach that seeks to optimize local functions, the 'time to profitability' approach looks broadly at considerations of profitability, and emphasizes investment payback.
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