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Putting money where it counts – Winning vehicles through Design-to-Profitability
OEMs worldwide waste millions every year on new features that their customers do not want or will not pay for. Worse, they develop vehicles which do not address consumer requirements and struggle in the market. Ultimately, OEMs fail at selecting concepts which enable them to earn money with their new vehicles.
The key to success fulfil consumer requirements at the right cost levels. Top OEMs have begun to recognize this and use methods such as Early Supplier Integration, Requirements Engineering and Concept Competitions twice as often as their less successful competitors.
The Design-to-Profitability approach, developed by Strategy Engineers and described in this white paper, brings these methods together and helps manage the trade-offs between cost and performance. Best used in the product concept phase, it creates product specifications in-line with market requirements and at competitive cost levels. 20% to 30% cost reductions are possible in early development phases compared to previous vehicles, resulting in multi-million Euro savings.