Organization theory and design: Lecture 31

31

New Products and Services

1


Probability of New Product Success
Technical Completion
Commercialization
Market Success

= 0.57
= 0.31
= 0.12

2


Reasons for New Product Success
•

Why are some products more successful than
others?
• Following factors isolated through research:
1. Better understanding of customer needs, paid
more attention to marketing
2. Top management support to change and
innovation
3. Most of the work done in-house
•

These factors point towards a horizontal link
across departments
3


Horizontal Linkage Model
• Highly competent HR in R&D, marketing
and production
• Boundary spanning
• Horizontal linkages, idea sharing,
coordination,

4


• Horizontal Organization

5


• Change in strategy and structure
• Change in culture
• Recap

6