Failure and Fast Track Project

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Applied research technologies (ART) are one of the technology world’s emerging giants consisting of a portfolio of 60 business units. In 2006 the total corporate revenue was $11 billion.
One of its units is the filtration units which develop next generation of products and technologies. But after two high profile new product failure, the unit had lost confidence. By 2006, it was losing $6 million annually.
Peter Vyas, manager of filtration unit has to decide whether to support or reject the request for $2 million in funding for RIMOS (residential irrigation mini-oxidation system) even after failing twice on earlier
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* Wagner should off have complete data available when required by Jackson. * More time should have been given for testing of earlier generation products. * There should have been more discipline and interest in the market place.

This is the forecast for the next five years. As you can see the financial operating income is only 10% for your 2007 compared to the income in 2011. Therefore there is a 10% rise as per Wagner’s report. Jackson also expressed her concerns with the $2,000 retail price point and pushed Vyas to clearly identify the risks associated with the plan. After further consideration, the team developed a risk assessment and response matrix, which they included in the business plan. Therefore in case the product fails a third time there could be a drop in operating income. Forecast Sales ( $ millions) | 2007$ 5.45 | 2008$ 7.08 | 2009$ 8.86 | 2010$ 10.89 | 2011$ 13.07 | Forecast Operating Income (%) | 10% | 15% | 20% | 20% | 20% | Risk | Level | Plan | May not gain market acceptance High - Ensure HVAC distribution support - Highlight ART name - Supplement marketing budget Product design flaws Medium
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