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ORGANIZATIONAL
For
New Product
ARRANGEMENT
BUDGETING
Finance As Many Projects As Possible
Spend a Fixed % of Sales Only
Estimate No. of New Products Needed
ORGANIZING NEW PRODUCT DEVELOPMENT
Different Companies
 Product Manager
 New Product Manager
 High Level Management Committee
 New Product Development Department
Different Ways
TEAMS
Venture Teams
Charged With Developing
Specific Product
CROSS
COMPANY
Venture
teams
Budget
Timeframe
Skunkworks
NEWPRODUCT
STAGE-GATE SYSTEM
Funneling stages through gates
By Senior Managers
KILL or HOLD or RECYCLE
Concept of
PROCESSES
CONCURRENT Product Development
Passing New Product
B/w Cross Functional Teams
With Incremental Innovation
At Each Stage
SPIRAL Development Process
Recognizes The Value of Returning
To an Earlier Stage to Make Improvements
(Stage Gate System)
Organizational arrangements for new product

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