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Profitability calculation in the product development phase, from early concepts to product launch

The challenges in the field of product development have changed dramatically in recent years. In many industrial sectors, there are increasingly complex requirements from the market and the customer side, while at the same time shortening lifecycles. Product portfolios are also diversifying to meet different customer requirements in global markets. Various company-wide requirements must be met to ensure regulatory compliance. It is difficult to determine the cost of a new product in an early stage due to incomplete information and volatile cost components. Evident weaknesses are visible within the process, if the calculation process is serial using a variety of interfaces, and various international subsidiaries may be involved in the process. Many companies are still using isolated databases and spreadsheets, even for profitability calculations in early stages of development. This implies the risk of making business decisions based on incomplete data sets.

Profitability Calculation

The challenges in the field of product development have changed dramatically in recent years. In many industrial sectors, there are increasingly complex requirements from the market and the customer side, while at the same time shortening lifecycles. Product portfolios are also diversifying to meet different customer requirements in global markets. Various company-wide requirements must be met to ensure regulatory compliance. It is difficult to determine the cost of a new product in an early stage due to incomplete information and volatile cost components. Evident weaknesses are visible within the process, if the calculation process is serial using a variety of interfaces, and various international subsidiaries may be involved in the process. Many companies are still using isolated databases and spreadsheets, even for profitability calculations in early stages of development. This implies the risk of making business decisions based on incomplete data sets.

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