Companies can only survive the rigors of international competition if they can bring telling advantages to bear in markets that are subject to vigorous change. New information technologies hold the key. An unbroken flow of data intermeshing with business management systems can support the development of a product from basic concept to design, manufacture and assembly. As tasks become more complex, the development of mechanical products requires assured mastery of high-performance computational techniques in an environment marked by constantly changing parameters. The potential of new engineering materials, e.g. in the fields of ceramics, powder metallurgy and fiber-reinforced plastics, have to be taken into account. Product quality can be enhanced using integrated computer-aided systems, e.g. for optimizing the geometry of machine components. Machining times and hence costs can be appreciably reduced. Tool optimization is achieved using CAD in conjunction with on-line CAM facilities. To increase availability and enhance product quality and user-friendliness, mechanical engineers will increasingly use computer-aided simulation and diagnosis systems to improve products, methods and techniques. Apart from product quality, a flexible response to customer's wishes and short development and delivery times will be decisive factors in future competitive scenarios. CAD support and the use of expert systems will substantially reduce the lead time from receipt of customer enquiry to submission of an offer. These trends in the development of mechanical products within the framework of an integrated information system will have increasing impact on organizational structures, managerial approaches and personnel requirements. © 1990.