FAQ
|
| 1) What is CAP?
|
1) Critical Assumption Planningsm (CAP) is a risk management process that adapts the venture capital milestone concept as a five-step process. The process is designed to be used by teams operating in a corporate environment and provides a tighter focus for the now familiar stage/gate process. |
| 2) How does CAP increase product profitability?
|
2) CAP helps development teams focus on the key business uncertainties in their project very early. In doing so, they can apply limited resources to testing these uncertainties quickly, thereby avoiding wasted time and development dollars, should the venture prove unsound. |
| 3) How do I choose among an array of new product concepts to maximize profitability?
|
3) There is a way to reduce the costs of product development and get a better return on R&D investment. The key is to get development teams focused earlier on identifying and testing the critical assumptions in the plan. The stage-gate process considers assumptions, but explores them in sequence through the normal, linear development process. This approach can fail to turn up critical assumptions until later stages. |
