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hello Sir,
i want to ask what is meant by break even time before and after the release of the product in this map
i dont get it.
thanks in advance 🙂hi Sir,
it is given in bpp study text book this is a return map presented by hewlett and packard to mange the life cycle of their product.
i cant put that map in here with my question 🙁 but i really dont understand The breakeven time in that map
perhaps the link below would help u to make me understand my question 🙂https://www2.ifm.eng.cam.ac.uk/dstools/represent/retmap.html
Thanks for that 🙂
(I am surprised that BPP has this – it is a bit too much for F5).However what it is showing is this:
Before the product can start being sold (and generate income), there is time and money spent investigating and developing.
Once the product is launched, then they start receiving income but it will be some time before they have covered all the costs (of developing etc,) and therefore breaking even.
The total time to breakeven is the time from very first starting to investigate the product up to the time when all the costs are covered – just for example suppose in total this is 18 months.
However, suppose the first 12 months of this 18 months was the time spent developing etc..
Then the breakeven time before release (launch) is 12 months and the breakeven time after release is 6 month.
Obviously in all circumstances we want the time to break even to be as short as possible – we can shorten the time by speeding up the development process and separately by shortening the time after release.
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