Developing and introducing new products and services is vital to most manufacturing companies. Good ideas are not enough; well-managed processes for bringing new products to market can lead to significant competitive advantages. Those activities, however, represent a significant risk that can lead either to missed opportunities or to huge financial losses.

In addition to new product development, the same processes and resources are applied to product improvements, corrections, and variations throughout the product lifecycle. Market research, customer requests, technological advances, regulatory concerns, and competitive pressures often subject products to frequent engineering changes.

Changes and improvements are easiest to make — and least costly and disruptive — earlier in the process. It is good business practice to collaborate with all operational areas of the business when the product and process is still being designed. Cooperation should be focused on making sure the new product meets market needs (marketing and sales), is priced to sell and generate a profit (marketing and accounting), can be manufactured efficiently (production, production engineering, quality, purchasing and key suppliers), and can be maintained and serviced (service).

Because customer expectations are increasing, and competition is coming from new players around the world, bringing better and cheaper products to market quickly is more crucial than ever. Research and development is a key success factor in a manufacturer's survival and growth. Efficiency and responsiveness of R&D processes will impact the top line as well as the bottom line.

Customers are now quick to compare and switch vendors. The Internet empowers buyers by providing fingertip access to many more suppliers around the globe; they can even customize products over the Internet without having to ask an engineer to quote their specific requirements. These capabilities change behaviors and expectations, and success in today's markets can only be achieved through innovation, agility and aggressive marketing.