Estimating the cost of new technology products
by Geoff Colmer, Martin Dunkley, Keith Gray, Philip Pugh, Andrew Williamson
International Journal of Technology Management (IJTM), Vol. 17, No. 7/8, 1999

Abstract: Unfortunately, major projects employing new technologies are extremely prone to cost and timescale overruns. It is believed that this is due to two main reasons. The first is the difficulty in preparing accurate estimates. The second is that the long development cycles allow time for market conditions and customer needs to change, and these changes inevitably add to the cost. This paper presents a practical discussion on the reasons why new technology projects are especially prone to cost overruns and how projects should manage the technology and surrounding issues. In particular, an appreciation of the capabilities and limitations of cost estimates by management may help to avoid some of the poor decision-making, which contributes to cost and schedule overruns. The paper discusses some of the ideas from project and risk management for effectively introducing new technology, helping projects to successfully meet the needs of both the customers and the project itself.

Online publication date: Sun, 06-Jul-2003

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com