”A day sooner is worth a million dollars”
THE IMPACTS OF A HIGH-SPEED PROJECT
History has shown that reduced time-to-market has a huge impact on revenue. The expression “a day sooner is worth a million dollars” originates from the pharma industry and saw the light of day in the mid 1990’s. One of the most effective ways of reducing time-to-market is by embracing what we call high-speed projects.
Developing products within the frameworks of a successful high-speed project, demands carefully balancing creativity, human factors and a technical mind-set right from the fuzzy front end to implementation and commercialization. This crucial iterative interaction between “soft” and “hard” processes and tasks helps you achieve the following results:
- Increased controllability
- On time deliveries
- Higher quality
- Lower cost
- Increased turnover
- Increased employee motivation
Our calculations support that even a small delay in the product development process can have a huge impact on product revenue. The graph below shows that a delayed launch lowers the overall revenue significantly as the product life is often unaffected by this delay. This is primarily due to the outside factors that affect products being taken off the market or needing redesigning; legal, political, economic, social, technological and environmental impacts and of course competitors and substitutes. In the graph below, this is manifested by the peak in revenue and subsequent decrease leading to product termination.
As shown below, if delayed by only two month in developing a product with a lifespan of one year, loss in revenue are as much as 44%.
Having been in the industry for more than 20 years, our experience is that high-speed projects not only increases revenue but also opens up for the possibilities for your company to bloom and:
- Be standards and norm setter
- Be less price sensitive
- Achieve an innovative reputation
- Achieve attractive distribution channels
- Achieve increased market shares and sales
A day sooner might not be worth a million dollars as initially stated – it can be worth so much more.