Problem:
• Research and development has already started on our new widgets. The company has spent $450,000 on this product so far and the estimate to bring this product to market is $575,000.
• Risk of completing this project on time is high.
• Product is forecasted to have ROI of $300,000 first year; $550,000 the second year; and $750,000 the third year.
• The product life is forecasted to be 7 years for this product. (This forecast included derivative product which will cost more).
• By delivering such an innovative product to the market place first, your organization will be seen as a leader in this industry.
Your sales and marketing teams have discussed this type of product with a few of your strategic customers; while some are interested, there are many questions about the business.
1. Determine why this project might be implemented (e.g. feasibility study, breakeven analysis, etc).
2. Describe the five phases of a project
3. Describe the key deliverables associated with the selected project(s).