The technology transfer points are indicated by the circled-numbers. Note the sub-stages i to iv; here is where prototypes are extremely useful. These are mini-technology-transfer points and this is where FEFO is often most valuable.

Now we're ready to point out the values of prototyping, which are seldom considered (thus I call 'hidden'), but which are extremely important and useful for business reasons. Remember that a prototype is basically a tool for conversation, exploration, and experimentation to evolve a product towards the stated goals. (A prototype should never be used as a tool for product approval unless it represents the final product.)

Values beyond the common - These values are categorized into 'business nuances', i.e. areas that are more business-specific than technical-specific.

1. User and product environment integration:
   • Allows designers and marketers to see how a product can and will be used, as opposed to "Gee…I never thought of that" or "I figured this was the way it would be, but boy, was I wrong".
   • Points out how a product actually interacts with a user's environment and other products not previously considered.
2. Financial:
   • Allows important visibility into PD progress for management and investors.
   • Affords ability to learn about the intellectual property value and opportunities not previously considered.
   • Legitimizes 'dicking' before heavy operational expenses occur: 'dick' now for $100 or 'dick' later for $10,000.
   • Points out relevant product value to business, market and users early on.
   • Validates technology vs. performance and cost: i.e. were the most cost-effective technology and design used?
3. Operations:
   • Allows documenting (e.g. video, software capture, etc.) of use, assembly, test, etc. of prototypes for parallel development of pertinent manuals and procedures, as well as, creating an audit trail of the development activity (valuable for medical / drug products and IP defense).
   • Allows staged acceptance / sign-off of some features, performance, requirements etc., since a sign-off all at once at the end of the project many times is difficult.
   • Fosters early teamwork and cooperation so human factors, industrial design, hardware, software, production and finance groups are able to interact early on when problems arise and are easiest to mitigate.
   • Motivates team and fosters working relationships by establishing a trusting environment and amenable methodologies up-front. This is especially important if any of the R constraints are very tight.
   • Fosters creation of a robust project structure and the preparation of appropriate tools, facilities, equipment and human resources for subsequent stages.
   • Allows buy-in by all stakeholders.