College of Economics and Business
Chapter 5 – Develop a business case for a marketing-related innovation after evaluating and analyzing the risks and benefits of the innovation
proposal
Innovation In Marketing
Semester 1, AY 2022-2023
BSMK4207
New Product -Roadmap
New Product Development (NPD)– Design
Focus
What is the Stage Gate Process?
• The Stage Gate Process, also known as the Phase Gate Process,
guides the product development process through six main phases. The
stages in the Stage-Gate are
1. Discover
2. Scoping
3. Define Business Case
4. Development
5. Testing and Validation
6. Launch
There is a gate between every two stages where the process can be tested
and validated to determine whether the team should move to the next step
or an iteration should be applied in the current step to improve before
moving to the next one. Dr Robert Cooper invented the process
New Product – Stage Gate Process
Stage-Gate Design Review Process for Effective Product
Development
Concept and Definition Design and Development Validation and Production Final Audit
Initial
ideas
New Product
The concept and The design and development The validation and production The audit stage consists of
definition stage consists stage consists of product and stage consists of continued final product and product
of an initial screening of process design and development. market launch planning and assessments. It often
all potential ideas, Financial feasibility product manufacturing and includes some reflection on
concept assessment, considerations also are pertinent, process validation. It also may the previous steps.
project definition, and including testing of price points include test marketing and
feasibility assessment. and customer acceptance. evaluation of launch plans.
Innovation – New Service
Development
Innovation – Service Firms Types
New Service – Design Focus
Service Innovation - Levels
Service Innovation - Elements
Service Innovation - Charter
Service Innovation -
Interrelationship
Integrated Service Innovation
System
New Services – Stage-gate Process
Innovation Business Model
Innovation – Technology Significance
Business Model & Technological
Innovation
New Product/ Service – Portfolio
Goals
Nature of Outsourcing
Outsourcing is the contracting
out of activities that need to be
undertaken on a regular basis,
and which otherwise would be
conducted within an organization
The term ‘outsourcing’ is also
sometimes used to describe the
hiving off of activities from one
country to another. This is more
precisely called ‘offshoring’ and
does not necessarily involve
contracting out activities to
another organization
Two Main Categories of Outsourcing
1. Outsourcing of core value-
chain activities
Supply chain, especially
manufacturing
Downstream activities such
as distribution
2. Outsourcing support activities
Human Resource
Management
Research and Development
Facilities management
Outsourcing changes organizational
boundaries
Larger companies are learning to
‘unbundle’ themselves into their
constituent parts
They can then outsource those activities
falling outside the core of their business
With a smaller body of core staff
possessing key competencies,
outsourcing leads to a compacting of the
traditional organization
Outsourcing: Examples
Parts of the value-chain:
• Today, DaimlerChrysler, Ford and GM mostly design
and assemble vehicles and their suppliers mostly
make what goes into them. About two-thirds of North
American auto industry’s $750 billion in value now
resides with suppliers.
Support Functions:
• HRM: many aspects of HR have been outsourced:
selection, payroll administration, development and
career management, relocation
Outsourcing of Manufacturing
Major examples:
1. Cisco Systems:
- tightly coordinated value-chain network of
manufacturers, subcontractors, resource
planners, etc.
2. General Electric:
- has moved many manufacturing operations to
countries like China
- has outsourced important support activities,
especially to India
Outsourcing of Services
Call centers
• India the major destination
• Financial services
• Services: telecommunications, power, water
Support services
• Accounting
• PR
• Computing
• HRM
Problems with Outsourcing
Loss of key skills and competencies
Unreliability of suppliers
Writing a poor contract
Loss of employee morale
Communication problems
Losing control over the outsourced activity
Squeezing suppliers too hard
Suppliers’ exploitation of dependency on them
Factors driving change in the private
sector
References:
• Anand Subramaniam (2010). Service / Product Innovation.
• Elmansy, D.R. (2022). Stage Gate Process: The Complete Practice Guide.
• Model, S. (2022). All about Stage-Gate Process for Product Development.
• Mohamed, Hudaif (2017). Outsourcing Global.
• [Link]. (n.d.). Business Perspectives - Innovative Marketing.
College of Economics and Business- MUSCAT
Contact Information
Name: Juhaina Al Aisari
Office:: BS60
Email: [Link]
VERSION HISTORY
Version No Date Approved Changes incorporated
01 Sem. (I) Juhaina Al Aisari
2022/2023