72 • Supply Chain Risk Management: An Emerging Discipline
then link that technology to the product development process. While not
all new technology emanating from R&D labs will be commercially viable,
the linkage of one process to another ensures that market- ready technol-
ogy can be designed into new products. When the pieces come together,
it can create a dicult barrier for less- eective competitors to overcome.
Target Pricing. Many product development eorts will benet from tar-
get pricing (sometimes called target costing). With a traditional approach
to product development, we arrive at the selling price by combining prod-
uct costs and adding a prot margin. Unfortunately, this approach oen
overstates the price a customer will acce ...