This rudamentry method provides a hurdle for a new product to pass before further stages. This person is usually part of the core managment team for the division, business unit or firm. This person has the responsibility to observe the product development while defending the process and team. The essential nature of reducing cycle time is due to at least three reasons. Competitive advantage due to the fact that the first product to market is often the most successful.
Higher profitability is possible due to the time value of money factor and greater marketshare.
Finally, a more customer driven product is possible because the market demands are met sooner. Two, changing customer needs is driven by the customers need for new, more advanced products every day. Three, shortening product life cycles requires new more advanced products to be developed sooner. Four, increased world competition has given each country access to each others markets and has hence driven innovation. It is also the most widely use method to measure financial viability.