#2What organizational structures and processes do managers use to oversee new-product development?

Cross-Functional Teams• Venture teams /cross-functional groups are charged

with developing a specific product or business.• “Intrapreneurs” are relieved of other duties and given

a budget, time-frame and workplace to work on ideas.

Cross-Functional TeamsUse concurrent product development, with team members passing product back and forth as they head toward goal. Eg. Allen Bradley Corporation

Stage-Gate Systems• Divide the innovation process into stages, with a

gate or checkpoint at the end of each.• Senior managers review the criteria at each gate to

make one of four decisions: go, kill, hold or recycle.• Incorporates spiral development process to make

improvements before moving forward.

Stage-Gate Systems: The New-Product Development Decision Process

Eg. Ansell Healthcare, Hydro Quebec.