Knocking on Industry’s Door: Needs in Product-Cost Optimization in the Early Product Life Cycle Stages

Abstract

While theoretical concepts for product-costing methodologies have evolved over the decades, little emphasis has been placed on their integration into modern information systems. During a co-innovation workshop at SAP SE, we initiated our collaborative research with selected large-scale enterprises from the discrete manufacturing industry. Moreover, we conducted interviews with business experts to gain a sophisticated understanding of the cost-optimization process itself. As a result, we present an exemplary optimization process with an emphasis on the specific characteristics of the product development stage. Based upon this example, we identified associated deficits in information system support. No current software fulfills the enterprises’ requirements regarding cost optimization in the early stages of a product’s life cycle. Thus, the respective processes lack integration in corporate environments. Taking this on, our article compiles detailed problem identification and, moreover, suggests approaches to overcome these hurdles.