ABSTRACT Increasing pressures in the marketplace for manufacturing products are forcing in the way organisations develop new products.. It has forced many companies to reduce their product development time and cost, increase product quality and make innovation systematically. Product development is a sophisticated process. It needs a lot of knowledge, experiences and co-operation among functions in enterprise. Traditional product development method can not answer these challenges. This method has been effective in a static technological environment characterised by long product life cycles and lack of information flow from one phase to other phase. Concurrent engineering is a concept to reduce time in product development, increase product quality and reduce production cost. Concurrent engineering requires the integration of people, business processes and information technology across the product development value cycle. This thesis offers a framework how the information technology can support concurrent engineering and its effect to the organization in order to be able to adopt concurrent engineering effectively.