Organizational structures and processes used to oversee new product development

1. Organizational Structures and
Processes Used To Oversee
New Product Development
By – Mausumi Mohanta

2. Organizational Structure :
An Organizational Structure consists of
Activities such as Task Allocation,
Coordination and Supervision, which are
directed towards the achievement of
organizational aims.

3. Companies Use
Customer-driven engineering to develop
New products, incorporating customer
Preferences in the final design.

4. Some companies rely on
Internal Changes
For Developing new products.

5. New Product Development
Requires Senior Management
To Define Business Domains,
Product Categories, and
Specific Criteria.

6. Budgeting For New Product Development :
• Financing as many possible products
• Conventional Percentage of sales figure
• Spend what the competition spends
• Work Backwards

7. Organizing New Product Development :
The Organizational aspect is
handled by Product Managers,
or New-Product Managers, or
Growth Leaders In a High-level
Management Committee, or a
New-Product Department.

8. Cross Functional Teams or/Groups
Collaborate and use Concurrent
new-product Development to push
new products To market.

9. Top Companies use Stage-gate System
To divide the innovation into Stages,
With a gate or checkpoint at each end.

10. Summary
• Budgeting New-Product development
• Organizing New-Product development
• Stage-Gate Systems