Speeding up Research and Development in Mechanical Engineering

Faster time-to-market as a strategic success factor in the global race

Man in front of computer research and development of product
01.09.2025 | Article

Europe’s industrial foundation, long built on precision, process discipline, and technological leadership, is facing a moment of strategic reckoning. A new generation of global challengers – particularly from China – has not only entered the field but redefined the pace of competition. Their most potent advantage is not simply lower costs, but the sheer speed at which they develop, test, and launch new products. In the past five years, Chinese mechanical engineering firms have tripled their revenue and increased exports to Europe by over 70 percent. More strikingly, their products reach the market 50 percent faster – and at 30 percent less cost – than those of many European rivals (based on analyses by Porsche Consulting).

This shift is not the result of incremental efficiency gains. It reflects a fundamental redesign of how Research and Development (R&D) is organized. Modular platforms, streamlined governance, and digital-first development practices enable a pace of iteration that traditional models, focused on exhaustive validation and layered alignment, struggle to match. In today’s compressed product cycles, the ability to move quickly from idea to launch defines who sets the standard – and who follows.

 

The C-suite sees the urgency – but transformation is still too slow

This shift has not gone unnoticed at the top of European companies. Surveys across industrial sectors consistently show that development speed and cost are now dominant themes in the boardroom. While 2022 only 57 percent considered R&D cost reduction as mission-critical, already 79 percent of executives flagged this point in 2024 (based on analyses by Porsche Consulting). A similar share sees time-to-market acceleration as an urgent priority, with importance rising dramatically in recent years.

Yet despite this strategic clarity, the operational reality in many companies tells a different story. Development projects are often slowed by decision bottlenecks, unclear scope, and insufficient standardization. Feedback from market and customer insights is considered too late to be actionable. Software capabilities remain underdeveloped or isolated, and global development footprints continue to reflect historical growth patterns rather than strategic intent.

A critical disconnect has emerged. Senior leadership calls for agility, but development systems are still optimized for stability. The result is friction. R&D teams operate under outdated assumptions about risk, complexity, and control – while competitors move faster, test earlier, and learn more with each cycle.

 

Understanding what holds R&D back

To accelerate, organizations must first acknowledge the systemic obstacles embedded in their current operating models. One major barrier is governance complexity. In many firms, key product decisions require approval from multiple committees, delaying resolution and dispersing accountability. Closely linked is the lack of platform-based development. Without standardized architectures and reusable components, each product generation begins almost from scratch, increasing both cost and time.

Another limiting factor is the underutilization of digital tools. Despite widespread availability of simulations, virtual prototyping, and digital validation technologies, many development teams continue to rely on sequential, hardware-heavy processes. In parallel, global R&D capacity is often concentrated in high-cost regions, missing opportunities for distributed development models that could unlock both cost savings and cycle time reductions.

Finally, the human dimension plays a decisive role. Cultural norms that reward caution over speed, and process compliance over outcome focus, often remain deeply rooted. Empowerment tends to be promised, but not structurally supported. These cultural dynamics, while harder to quantify, often have the most direct impact on development velocity.

 

What actually works: four dimensions of transformation

Organizations that are successfully transforming their R&D operations are not simply investing in tools – they are rethinking how strategy, process, structure, and culture interact to enable speed. 

The first dimension is the product strategy. Companies focused on speed shift away from bespoke engineering towards modular, platform-based approaches. Instead of customizing every product from the ground up, they design around reusable elements and make clear decisions about which capabilities to build internally, which to outsource, and where to partner. Innovation becomes focused and deliberate, aligned with product lifecycles and customer value perception – not driven by technical aspiration alone.

Processes and methods form the second dimension. Accelerated development requires structure – not more steps, but more clarity. Organizations that define fixed development timelines based on product type, frontload requirements definition, and integrate short-cycle feedback loops create predictable flow without stifling creativity. Simulation and virtual validation reduce dependence on physical prototypes and allow earlier decisions. Crucially, these processes are governed by explicit phase gates, enabling early termination of low-value projects before they consume critical resources.

The third lever is the organization. Companies serious about time-to-market invest in lean governance, with fewer interfaces and faster decision escalation. They establish clear roles, especially in cross-disciplinary areas like systems and software engineering, and ensure that teams operate with consistent resources and end-to-end accountability. This clarity enables faster handoffs, reduces coordination overhead, and builds ownership where it matters.

None of the above points can succeed without the fourth dimension: people and culture. Speed is not only about processes – it’s about mindset. High-performing organizations encourage entrepreneurial thinking, allow for controlled risk-taking, and reward initiative over compliance. They invest in software and data capabilities and create working models that enable global collaboration in real time. Rather than seeing speed as a threat to quality, they embed it as a value to be protected and cultivated.

Immediately applicable solution levers of research and development per dimension

Four dimensions to accelerate Research and Development.

Immediately applicable solution levers of research and development per dimension
Four dimensions to accelerate Research and Development.

A pragmatic path from analysis to acceleration

While the vision is clear, many companies struggle with where to start. A structured transformation approach begins with honest diagnosis. Organizations that benchmark their current development performance against peers quickly identify where the real gaps lie – whether in process complexity, decision speed, resource allocation, or technical capabilities.

From there, the next step is to pinpoint time-to-market levers with the greatest immediate impact. These may include simplifying project categories, improving requirement stability, or frontloading integration activities. Portfolio rationalization often follows, focusing on reducing variant complexity and improving modularization across product families.

Development footprints are then assessed based on cost, capability, and time-zone complementarity. Organizations that strategically distribute development across regions – and align it with their product and technology strategies – unlock additional efficiencies and responsiveness. Governance models are updated to ensure faster escalations, clearer mandates, and more consistent steering. Finally, cultural interventions – ranging from leadership development to incentives – ensure that the new system is embraced, not resisted.

Organizations that follow this path have achieved measurable results: time-to-market reductions of over 30 percent, reduced R&D effort per project, and increased alignment between engineering and business functions.

Time-to-market reduction through structured R&D transformation

Time-to-market reduction through structured R&D transformation.

Time-to-market reduction through structured R&D transformation
Time-to-market reduction through structured R&D transformation.

Speed as strategic advantage

Time-to-market is no longer a metric buried in the development dashboard. It has become a strategic differentiator – an indicator of how effectively an organization translates insight into impact. In dynamic markets, speed signals agility, confidence, and customer focus. It also protects against disruption: organizations that can test fast, fail early, and scale quickly are better positioned to navigate volatility.

The critical insight is that speed does not come at the expense of quality or cost. When approached systematically, accelerated development improves both. It reduces rework, clarifies priorities, and fosters learning. But it requires a willingness to challenge deeply held assumptions, to simplify where tradition says “add detail,” and to trust teams with greater autonomy.

Companies that succeed in this transition do not just become faster. They become better at understanding what matters, at making decisions based on evidence, and at executing with clarity. In a world where the market window is shrinking, and customer expectations are rising, this ability will define not just who wins – but who gets to play at all.

 

Key Takeaways

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Time-to-market is no longer an operational target – it is a strategic imperative with direct impact on competitiveness and profitability.
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A 25–40 percent reduction in development time is achievable when product strategy, processes, organization, and culture are aligned around speed.
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R&D organizations must evolve from being cost centers to becoming fast, focused engines of market delivery – built to learn, built to adapt, and built to lead.

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Dirk Pfitzer, Senior Partner Construction, Energy, Industrial Goods
Dirk Pfitzer
 Industry Lead Industrial Goods

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