Subject: Tool for Innovation Management
MEHRAN UNIVERSITY INSTITUTE OF
SCIENCE & TECHNOLOGY
Tool for innovation management
Company A is considering launching a new consumer product and is interested in a
clear idea of the potential market and the range of competing products. They are
trying to compete on technological features rather than price. Thus, they would like
information about the technological edge which their product is perceived to have.
Respected Madam Arabella Bhutto
Abdul Ghafoor Siyal
THE COMPANY A SELECTS FOLLOWING TOOLS ACCORDING TO DEMANDS.
1. Stage Gate Model
2. Bench Marking
STAGE GATE MODEL
The product innovation process is a clear idea of the potential market, where the product can be
competed with other products. Because many leading companies rehabilitated their products
innovation processes through stage gate model. According to several independent research
studies (i.e. Product Development & Management Association, AMR Research, Booz-Allen
Hamilton, etc.) between 70-85% of leading U.S. companies now use Stage-Gate to drive new
products to market
This tool provides a stage to launch a new consumer product and can achieve clear idea for
potential market and the range of competing product. When Product life cycles are very shorter,
competition is stronger and customers are more demanding for product, then this tool can be
applied for encouragement of business firms or to the companies. This tool will help to launching
new products for customers in the market.
Some new companies do not succeed to launch their products in the market due to inexpertness.
Some top companies which re-invent their product with new design & shape but some do well
and some do not well because those have ideas and strategies to producing innovative product to
their customer. In the business terminology risk factor is also involved in each company, this is
vital factor how it can control or manage. It can be evaluated through process model.
As it is mentioned in above lines that some companies re-invent their products through their
business strategy and innovative ideas. Though companies do the best practices to launch new
product but when those fail then idea of stage gate model is rising through this model companies
can launch new consumer product.
This model provides variety of strategy to launching new consumer products which are as under:
Where the strategies are made to begin some thing new. Ideas have been screened into
shaping. Willingness act which helps to generate idea but that idea can be converted through
physical and logical those have to aims and objectives or purposeful in creation or invention
A rapid and cheaper evaluation of the project where market can be forecasted. For example a
product which is already made through its making process after its completion it will be
transferred to market for its sale.
Build Business Case:
Where technical, financial, market information are required to present a new risky or success
business model, though firm also developed but provides more new information accordingly,
through the help of those it can be created suitable business model.
Development can be done in manufacturing, operations, market and products. Development is
necessarily to develop these above factors.
Testing & Validation:
Testing & Validation means that it verifies the product with process including distribution of
product till customer acceptation that it is recognized product and valid for use.
Launch or launching new consumer products for commercialization of business which reaches at
market to grows up its asset or financial position through selling the products.
This model is complete solution to launch for new consumer product wherever companies are
been being installed those are willing to begin potential consumer product. This tool helps them
to producing strong consumer product.
All steps between an idea and the successful launch of a new product can be viewed as a
dynamic process. Stage-Gate divides this process into a series of activities (stages) or steps and
decision points or starting edge of new task or activity internally in the stage gate processing .
The stages are involved in the gate to gate activies where actions can be made through stage
wise. Stages are chain work where each gate is linked with an other gate, which capable the
decision to launching new consumer products at market place . Risk can be managed through
parallel activies in a real stage whether technical, market, financial, operations information is
This tool is beneficial for the companies those are committed to producing new consumer
product, this helps those for single product discovery, it has been done empowered 85% of all
North American companies those have been improved their product developments and achieved
new growth or position in their business.
Stage gate model works speedily to market, increases accession possibilities of products
success, introduces regulatory settlement of new products and discontinues an ordinary
supplying process of product. Enhances poor projects where those are lying and increase theirs
capability, gets strength in lack of resources makes eligible for proper utilization in the business.
This tools displays result itself that it is more effective, eligible, and makes competitive process
with gates to stages of every begin and every end of this model.
BENEFITS OF USING STAGE-GATE MODEL
The Stage-Gate Product Innovation system has been referred to as the single most
important discovery in product innovation empowering almost 85% of all North American
companies to achieve improved returns on their product development dollars and to achieve new
When implemented properly, Stage-Gate delivers tremendous impact:
Increases likelihood of product success
Introduces discipline into an ordinarily chaotic process
Reduces re-work and other forms of waste
Improves focus via gates where poor projects are killed
Achieves efficient and effective allocation of scarce resources
Ensures a complete process no critical steps are omitted
The results lead to more effective, efficient, faster process that improves product
Cross-functional teams must successfully complete a prescribed set of related
cross-functional activities in each stage prior to obtaining management approval to proceed to
the next stage of product development.
After using stage gate model then we are able to apply the Bench Marking tool. The company
can lead through this tool. Bench marking provides a range of techniques which compare two
types of processes, products, etc. it guides how various companies manage product development
process, which is the fastest or slowest and provide information of learning opportunities to
understand how it is the fastest than other. It manages field of quality management where it is
used to get better performance in business, software development and continues improvement of
One of the best-known examples of benchmarking as a learning resource are the activities within
the International Motor Vehicle Programme, which has systematically collected and exchanged
information on nearly all car assembly plants in the world.
It clears that which plants are the most effective or less effective, so it makes attention for other
manager how they can get effectively? It is a powerful model of learning in the industry, where
the companies utilized the tool for better improvement theirs processes, product, and including
The manager of company-A can be done compete technologically through this tool, because this
was also used in aerospace manufacturing and construction. Can we imagine it might help
aerospace, may it be helpful for this company which is willing to compete technologically rather
than price? Yes it can
After deep study of this tool proved that it is feasible for the technological competition and also
will help to manage price of the product. Technological features and price are different main
reasons for the companies, but these two reasons have importance for the product and its
company, because competition can be done on the technological basis rather than the price.
These two main factor have importance that how these can be managed? It is not essential for the
company that it should has to compete on both factor, because technology creates competition in
the market, attracts the customer through its dynamics capabilities those involved recent
producing product. Customer will also satisfy from new product though they get before than new
product, but they access same with new features, like color, design, size, weight, and including
price. These all feature are possessed by this Bench Marking tool.
As it is mentioned in above Para that this tool guides two individuals not individuals but makes
comparison between two, so technological capabilities can be enhanced through this tool.
Company should has to review on technological map, technological map may bring from an
other company then both should be put on the table and can be measured through this tool.
The Bench Marks can be constructed through different parameters of performance, quality,
productivity, customer service, technologically etc. comparisons can be made with similar firms
in terms of color, design of product, , weight, size, sector and markets or with different ones but
which are noted for world-class performance along a key dimension.
Benchmarking works in two ways to facilitate learning: It provides a powerful
motivator since comparison often highlights gaps which if not closed might well lead to
problems in competitiveness later.It provides a structured way of looking at new
concepts and ideas.
When this tool applies, it motivates the firms, managers, and individuals, those are willing to
perform or produce innovatively. As tool describes ways of learning that it provides developed
way of looking at new ideas and concepts. When innovation comes? When mind works well
means bold ideas and concepts which generate from human brain but those generate
automatically and some generate after review of any thing, task, so study of bench marking ideas
can be generated with comparison. This is an also way to bring innovation.
It can take several forms; it is a leader or guider it informs about different task, which can be
possible if they are not. It happens them through different ideas, for example I am willing to
manage super market how it can be managed? How transactions can be done? How supplier can
be transferred goods and items? These questions are only questions, but it is possible to do
through bench mark. It encourages smaller enterprises; it is developed methodology for learning
The potential of benchmarking is both in the early stages of the technology management
process as part of the scanning for signals for change and also at the end, as a way of
assessing whether the process could be managed well
Search behavior and innovation
Some organizations are confused to adapt new products or process, new business model, and
unused market. Firms need to become vigorous in search behavior for looking forward newness
which is gathered their collective knowledge about markets and technologies with new pattern.
There is a great knowledge to find innovation, it can be in the form of product, service or
combinations, new processes in business, new position in firms, marketplaces, geographical
regions, supply and value chains and also in reframing ideas about the business how it and firm
be operated? Those take place to begin their business.
Mostly search is objective or vision in strong developed areas, to develop contemporary
technological trajectories, deeply understanding of markets its segment and locations, working
within a developed perspective of politics, regulations, public opinion.
Reactions or reasons could be the emergence of a new technology with market, the arrival of a
new player with a radically different approach, shifts in the regulatory framework, unexpected
political events or the emergence of a radical new business model which reframes the game.
Technological features has been found through comparison of technological capabilities of any
firm and also price can be done through this process because this process indicates that what
price is imposed by others than this statement it can be decided that what price is suitable,
because here company can not charge direct prices it depends on utilized material cost which has
been used in the product what cost of material, labor charges, packaging, and what price is same
product by other companies then it be decided through bench marking or with comparison with
others. Also an other way to impose price through group decision making tools which is
completely depends on the group compound decision which is more feasible, because no argue
will risen after groups decision. The factor majority is involved in the group decision making. It
is very easy to surcharge of price.
There is an other tool for helping to compete technologically rather than price.
P1 - innovation to introduce or improve products
P2 - innovation to introduce or improve processes
P3 - innovation to define or re-define the positioning of the firm or products;
P4 - innovation to define or re-define the dominant paradigm of the firm
These are predominant factors for firms, expect fours 4Ps firm dont have any other option to
consider their products and operate their businesses. Those are linked with each other; firm can
utilize those purposeful factors those help in producing products, and innovative processes.
However 4Ps provide a combined constructive pace approach to examining the opportunities for
INNOVATION IN PRODUCT
The innovation in product is major step, which takes place forward from existing product;
innovation in product can be done in the shape, price, and color or in taste. Product innovation is
also appropriate way through the company can be certified through its innovative idea. Product
innovation is providing superiority in product. At one level the notion of innovation in products
offered is simple.
Here this company can compete on technologically. Because processes are the routes for
technologically walk, where the company can compete through its innovative processes.
Processes are series of activities, those are happening horizontally into the organization.
Processes are sequences of activities, often proceeding horizontally across the organization.
Processes are significant to improve existing operational processes. Company can identify new
processes routes. Some time it interacts in complex way.
At least some of these processes are interdependent and core processes like maintaining hygiene
are especially important. Innovation in processes in this comparison simple environment is
unlikely to be coherently managed different agents will play vital roles and ideas for
improvement takes place from a variety of sources. This is a probability to notice or informed
employees from some processes those are weaker to see opportunities and getting plans for their
There are different source of serious comments and development of ideas and several ways in
which decisions are taken to begin change, Such complexity in the ownership of process
innovation is typical although major processes, like the layout of a new automated production
line, will generally be managed using a systematic approach
Process innovation can be made easier by systematic analysis and by comparative benchmarking.
Specific techniques include: process mapping, activity analysis, constraints analysis, kaizen,
problem analysis, video recording, modeling, time compression, statistical analysis, pilot
experimentation, process management, problem-solving for a and cost structure analysis.
Processes present a strong and wide set of goals for innovation. Multiple small improvements
can be building up with enormous growth.
INNOVATION IN POSITION
Innovation in position does not significant it is well to enhance company capabilities but it is not
meaningful for the customer, because he/she is interested in the product and does not aim to
enhance company profile.
Mostly positional innovation related with firms, brand or products. This approach emphasis on
the personalities, power-structures, policies and practices, apparently following a similar change
model to that adopted by commercial firms. This approach develops firms by the above
characteristics, because as product is the most important for the customers as well as positional
innovation is the most important for the firms, firm can not be lost their status, and they are
trying to make capable themselves technologically and economically. It has four elements for
innovation, idea, adoption, application, and benefit.
INNOVATION IN PARADIGM
Innovation in paradigm included in learning requirement. It a complete map, which shows whole
position of the firm, as it cans self-evaluation, that what are made by him/her for the it is right or
wrong, through this statement he/she can review the whole project step wise. As it can reflect
according their dependency, whatever has been added into it? Paradigm is beam which shows
darkness of the firm, or it enables the level where are to be needed. It rectifies pitfalls from itself,
those can be harmful for this, and remedy does not hygiene itself.
Paradigm looks internally as well as externally in the firms, because it is not necessarily that it
cover only outer or inner environment. All steps those are entitled or working frequently from
begin to end of firm internally also externally that those should be evaluated to control paradigm
The conclusion draws that the stage-gate model is very feasible to launch a new consumer
product, because it has a broad range of strategies which are implicated with this case. This tool
is beneficial for the companies those are committed to producing new consumer products, this
tool helps to discover or launch new consumer product, it has been done empowered 85% of all
North American companies those have been improved their product developments and achieved
new growth or position in their businesses. Stage gate model works speedily to market, increases
accession possibilities of products success, introduces regulatory settlement of new products and
discontinues an ordinary supplying process of product. Enhances poor projects where those are
lying and increase theirs capability, gets strength in lack of resources makes eligible for proper
utilization in the business. This tools displays result that it is more effective, eligible, to
producing new consumer product.
Bench marking provides a range of techniques which compare two types of processes, products,
etc. it guides how various companies manage product development process, which is the fastest
or slowest?. One of the best-known examples of benchmarking as a learning resource are the
activities within the International Motor Vehicle Programme, which has systematically collected
and exchanged information on nearly all car assembly plants in the world. It clears that which
plants are the most effective or less effective. It is a powerful model of learning in the industry,
where the companies utilized the tool for better improvement theirs processes, product, and
including quality till to manage the price comparatively. Technological features and price are
different main reasons for the companies, but these two reasons have importance for the product
and its company, because competition can be done on the technological basis rather than the
price. These two main factors have importance because technology creates competition in the
market, attracts the customer through its dynamic capabilities.
4Ps are predominant factors for firms, expect firms dont have any other option to consider their
products and operate their businesses; firms can utilize those purposeful factors those help in
producing products, and innovative processes. However 4Ps provide a combined constructive
pace approach to examining the opportunities for innovation. Through this tool company a can
compete through technologically rather than price, it is innovative model which manages all Ps
with innovative capabilities.