This textbook describes strategic product and service planning, introducing the concept of innovation. Linear models of product development are presented, and the product concept and system architecture generation are introduced. The responsiveness of the development process to uncertainty and complexity is covered, as well as ways of managing portfolios, programmes and projects. This textbook results from the author’s experience of teaching more than 40 years. The methods described in the book have been taught and applied by the students. Examples of concept development projects of products and services carried out by the students are described, many of them revealing great creativity.