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Product line development as a rational, strategic decision

: Schmid, K.; John, I.

Schmid, K.; Geppert, B.:
International Workshop on Product Line Engineering. The early steps: Planning, modeling, and managing. Proceedings of the PLEES'01
Kaiserslautern, 2001 (IESE-Report 050.01/E)
Reportnr.: 050.01/E
4 pp. : Ill., Lit.
International Workshop on Product Line Engineering <2001, Erfurt>
Conference Paper
Fraunhofer IESE ()
product line transition; strategic development; real option; scoping; business case

Product line development requires a certain amount of up front investment in order to make assets reusable. This investment often keeps organizations from planning and realizing their products in a product line. But there are also major advantages of doing product line development which are often not taken into account when deciding for or against product lines. In this paper we present problems that need to be addressed in the strategic planning of transition towards product lines. These aspects include the involvement of uncertainty, the interdependence of technical solution and decision making, and the interdependence among the decision making and the market aspects. An approach which covers these aspects will determine an objective valuation of a product line.