organizational structures and process

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    organizationalstructures andprocesses used tooversee new-productdevelopment

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    An organizational structure defines

    how activities such astask allocation ,coordination

    and supervision aredirected towardsthe achievement of

    organizational aims

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    Many companies use customer-drivenengineering to develop new products,incorporating customer preferences in the

    nal design

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    Some rely on

    internal

    changes todevelop moresuccessful new

    products.

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    Budgeting for New-Product Development

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    nance as many pro ects as possi!le,hoping to achieve a few winners.

    spend what the competition spends.

    decide how many successful newproducts they need and wor" !ac"ward toestimate the re#uired investment

    Mostly $ strategies are followed

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    Stage Numberof Ideas

    PassRatio

    Cost per Idea otal Cost

    !" Idea Screening #$ !%$ &!,''' $,'''

    (" Concept esting !# !%( (',''' )(','''

    )" Product *evelopment + !%( ('',''' !,#'','''

    $" est arketing $ !%( -'',''' (,''','''

    -" National .aunch ( !%( -,''',''' !',''','''

    &!),/+$,'''

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    ni&ing New-Product Development

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    '(%SS-)*N'+ %N +/ MS

    relieved from other duties and given a!udget , time frame and a informal

    wor"place

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    Divide the innovation process into stages , with agate at the end of each

    +he pro ect leader , wor"ing with a cross-functionalteam, must !ring a set of "nown delivera!les toeach gate !efore the pro ect can pass to the ne0tstage.

    S+ 1/-1 +/ S2S+/MS