Ch19-2

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Sameer Mathur

What organizational structures and processes do managers use to oversee new-product development?

Business

Sai Chakradhar Araveti, Junior Undergraduate, IIT Delhi
SYNOPSIS
What organizational structures and processes do managers use
to oversee new-product development?
Marketing Management - A South Asian Perspective, 14 edition, P. Kotler

Sai Chakradhar Araveti, Junior Undergraduate, IIT Delhi
STRUCTURES
• Cross-FunctionalTeams
• Stage Gate Systems
(CREATE)

Sai Chakradhar Araveti, Junior Undergraduate, IIT Delhi
CROSS FUNCTIONALTEAMS
• Venture teams are created
to develop a speciﬁc
product/business
• A budget, time-frame and
an informal workplace is
given to develop new
product ideas
• Example:
Allen-Bradley Corp

Sai Chakradhar Araveti, Junior Undergraduate, IIT Delhi
STAGE GATE SYSTEMS
• Divide the innovation process
into stages with checkpoints
at the end of each stage
• Senior managers review the
criteria at each stage and
either give a go, kill, hold or
recycle
• Incorporates a spiral
development process to make
improvements at each stage

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