During technical and new business development projects, the assessments conducted at the close of each development Stage or Sprint are designed to reduce project risk. In this case, risk can be thought of as the likelihood and impact of an outcome less favorable than the most likely project scenario. Some of the project risk can be ascertained and analyzed by information obtained from internal project team members. However much of the project risk analysis involves competitive, supplier, and consumer information that must be obtained from outside sources. Thus competitive intelligence professionals are key to obtaining timely and accurate information for project reviews and Boards.
The project risk analysis should include: (1) R&D Risks – The technology may be too difficult or too costly to commercialize. (2) Manufacturability Risks – Significant additional development may be required to mass-produce the product. (3) Marketing Risks – What the customer will do with respect to a specific product offer-for-sale opportunity. (4) Competitive Risks – What will be the most likely competitive response. (5) Legal Risks – How the cost and utility of the technology are affected by legal issues (FTO, license royalty payments, legal fees, etc. Specifically is there blocking prior business, technical, or patent art? Are there white space opportunities to leverage? Is there internal adjacent art at the company or from licensing from outside the company?)