8.1.3 Clearly defined product development strategy

The product development strategy should provide:

     total clarity about the relationship between the portfolio of product
        development projects and the overall business strategy;

     clear definition of the portfolio of new product development projects
        relative to business selection criteria;

     indication of the costs and timeframes involved to achieve the desired
        outcomes of the portfolio;

     indication of the resources required to achieve the desired outcomes -
        what resources are required internally and what should be out-sourced.

The product development strategy is linked to, and indeed is the basis for, the tactical strategy that organises the product development programme and the individual product development projects. In a number of companies there is often a communication blockage between the product development strategy and the tactical strategy that determines the work of the designers, engineers, marketers, production and other personnel involved in the project. This can reduce both the effectiveness and efficiency.