Faster time to market and shorter product life cycles are pushing the company to introduce new products more often. While the new products offer tremendous value, product introductions and transitions presents enormous challenges for managers. In the study of the product introduction, the authors found that the overall handicap was the lack of a formal process to guide management decisions. Drawing on research in Intel and examples of General Motors and Cisco Systems, article develops a process to facilitate decision-making in new product transitions. The proposed risk analysis process affecting the transition defines a number of factors, units monitor these risks, follow the evolution of these factors over time, and develops scenarios plays a map of risks and responses. This process helps with expectations throughout the organization, reduces the likelihood and consequences of unexpected results, and helps synchronize responses between the different agencies. This helps managers to develop and implement appropriate policies to increase sales of new products and slowing sales of existing products, balancing supply and demand for both, so that the total volume of sales can grow smoothly. "Hide
by Feryal Erhun, Paulo Concalves, Jay Hopman Source: MIT Sloan Management Review 10 pages. Publication Date: April 1, 2007. Prod. #: SMR245-PDF-ENG
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