Manufacturers must take a closer look at the way they launch new products or pay the price, according to Gary Turner of accountants PricewaterhouseCoopers in the Midlands.
Mr Turner said many manufacturers in the UK were not adopting the most effective methods of developing and introducing new products to their markets.
He said: "As much as 25 per cent of investment is being wasted resulting in products being brought to market that require further development.
"For companies operating in sectors that require high volume sales to see significant returns, an efficient process is especially crucial."
He said PwC had worked with a company with a turnover of about £40 million that incurred a loss of £14 million on a product launch failure.
"A key factor in the successful implementation is creating a shared data environment where all parties involved in the development of a new product have instant, simultaneous access to the latest information.
"Shared data environments can be both physical, by creating a 'war room' at a location where researchers, designers, engineers and financial controllers all have regular access, or an internet-based facility which removes the geographical restrictions."
