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4. A lack of game-changers:
New product failures and being late or slow to market are the measurable costs of poor or untimely execution,often brought on by insufficient resources. A far greater cost is unmeasurable,because it's an opportunity cost.How many projects are simply not done due to a lack of resources? Given a limited resource base,human nature dictates that it be spent on lower risk initiatives that don't cost very much.
As one executive put it:"My business has a limited R&D budget. I can't afford to risk a major percentage of that budget on a handful of big projects. I've got to hedge my bets here,and pick the smaller and lower risk ones.Besides, many of these smaller projects have to be done?Cthey're needed to respond to a customer request or to keep the product line up-to-date. If I had a larger R&D budget, then I might tackle some more venturesome projects '[6].
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