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Measuring product development performance in high-tech companies

How effective is your product development organization in delivering new and profitable revenue streams?

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If you had to measure your product development performance in one key performance indicator, what would it be? Where are the gaps and what are the corresponding improvement opportunities separating the leaders from the laggards in highly successful product development?

Addressing these questions is critical since product development is a key driver of both top- and bottom-line performance in the high-tech sector. Much of these companies’ assets are directly linked to product development and research and development (R&D). Investments are typically high as a percent of their revenues. Success in product development is a primary factor in the external perceptions of companies’ future performance.

Deloitte’s Global Benchmarking Center recently initiated a benchmark study with Oracle Corporation to develop some insights into these issues. The pilot phase of this benchmark looked at 14 business entities across multiple companies in the semiconductor sector.

The study is continuing and will extend to other high-tech sectors, but initial results already provide some measurements that will be of interest for all technology companies. 

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