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

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

2. An organizational structure defines
how activities such as
task allocation ,
coordination
supervision are
directed towards
the achievement of
organizational aims

3. Many companies use customer-driven engineering
to develop new products, incorporating customer
preferences in the final design

4. Some rely on internal
changes to develop
more successful new
products.

5. Budgeting for New-Product Development

6. finance as many projects as possible,
hoping to achieve a few winners.
spend what the competition spends.
decide how many successful new products
they need and work backward to estimate
the required investment
Mostly 3 strategies are followed

7. Stage
Number
of Ideas
Pass
Ratio
Cost
per Idea Total Cost
1. Idea Screening 64 1:4 $1,000 $64,000
2. Concept Testing 16 1:2 20,000 320,000
3. Product Development 8 1:2 200,000 1,600,000
4. Test Marketing 4 1:2 500,000 2,000,000
5. National Launch 2 1:2 5,000,000 10,000,000
$13,984,000

8. Organizing New-Product
Development

9. CROSS-FUNCTIONAL TEAMS
relieved from other duties and given a budget
, time frame and a informal workplace

10. Divide the innovation process into stages , with a gate at the end
of each
The project leader , working with a cross-functional team, must
bring a set of known deliverables to each gate before the project
can pass to the next stage.
STAGE-GATE SYSTEMS