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Master of Business Administration

LEARNING MATERIALS

NEW PRODUCT MANAGEMENT

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Subject Overview

SUBJECT OVERVIEW
How to Use Your Study Pack .......................................................................... 2
Learning from the Workplace ......................................................................... 2
Synopsis ......................................................................................................... 5
Learning Outcomes ........................................................................................ 5
Content .......................................................................................................... 6
Resources....................................................................................................... 8
Assignment ...................................................................................................13
Academic Integrity: Avoiding Plagiarism, Collusion and Other Issues ............14
Online Library User Guide .............................................................................14
Online revision quizzes ..................................................................................15

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Subject Overview

How to Use Your Study Pack


Your study pack for this subject contains the following materials:
- These learning materials, including the following:
- Subject Overview (which includes the introduction, subject content, list of
resources and assignment), and
- Topics
- Sample Exams
- Articles
- Supplementary Resources (if any)
The information contained in your study pack has been designed to lead you through your
learning process.
Note that the learning materials are not a replacement for the textbook.
Learning materials for each topic in the subject are based on specific chapters in the
textbook. You should read the textbook along with these learning materials, and concentrate
your study on the issues raised.
Learning activities and/or discussion questions are included in the learning materials.
Advanced students might wish to pursue more of the discussion questions at the end of the
appropriate textbook chapters.
Note that the examiner does not expect that you to memorise all of the issues that are
discussed in the textbook or in these learning materials. It is more important in the exam to
be able to demonstrate that you understand the various concepts and to show how they can
apply to practical examples of organisations in your country or region.
Some of the topics list one or more journal articles related to that topics content. For exam
purposes, the textbook will be the primary source to answer exam questions, but if you are
able to do additional reading, information from the journal articles or elsewhere may help
you to achieve a higher grade.
Finally, online quizzes and sample exam papers are provided to help you test your
understanding of the subject.

Learning from the Workplace


Studying at the Australian Institute of Business is a unique experience. There are no artificial
boundaries between the workplace and the classroom. The world of work is never far away
from everything we do. It is no coincidence that the Institutes strap-line is The Practical
Business School. Indeed, our very mission is

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Subject Overview

to provide distinctive business and management education in national and


international environments based on AIBs orientation towards work-applied
learning.
So how do we do this and how will you experience the difference? The answer is that
learning from the workplace is embedded in all aspects of your course. Let us see how this
works in practice.
Practitioner experience as entry requirement for students
For a start, most students will already have experience of the workplace and in
postgraduate programmes this is a prerequisite. This will enable you to see whether
theories make sense in practice and, in turn, to bring real-life problems to the
classroom. You will very quickly find, too, that you can also learn from each other,
sharing experiences and looking for solutions.
Academic facilitators with practical experience
Of course, all of our facilitators are required to have appropriate academic
qualifications, as well as relevant workplace experience. With this background, they
can bring interesting examples into classroom discussions. In addition, with our
international coverage we are very keen that facilitators can relate the various
subjects to conditions in different parts of the world, making it all much more
meaningful to you as the student.
Design of courses and learning materials
Work-applied research is integrated in all of our courses. This is why we include a
work-based assignment in every subject in our undergraduate as well as
postgraduate programmes. It is also why you will be asked to undertake at least one
work-based research project in the course of your studies. With the guidance of an
experienced project supervisor, you will be able to explore a topic of your own
choosing, ideally based on a problem that you want to address in the workplace.
Teaching and learning strategies
Even the way you learn will often be more like a workplace situation than a
traditional classroom. You will be encouraged to work in groups and to share your
understanding of real-world situations. As well as your own selection of case studies,
you might discuss one presented by the facilitator or perhaps taken from a textbook.
Course objectives are achieved when you relate your readings, course materials and
facilitator guidance to the workplace. It is a to and fro process, backwards and
forwards between the classroom and the workplace, reflecting on the links and
developing your own ideas.

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Design of course assessment


Finally, even the various forms of assessment are designed with the workplace in
mind. You will be expected not merely to describe what you observe in the
workplace, nor just to replicate what you have read in a textbook or journal article,
but rather to achieve a combination of the two. We will be looking always for a
balance between theory and practice. As you progress through your course this
should become almost second nature to you reading what others have written on
the subject but also looking at what you see in the world around you.
All of the above amounts to a distinctive approach to learning, known as work-applied
learning. You will see in the following diagram that knowledge of various aspects of business
and management is enriched through projects related to the workplace. This leads to
questioning of what you already know and ultimately to well-informed, practical outcomes
that can take you well beyond what you could find in libraries alone.
To explain a little more, the natural starting point is where you see the Q. Start by asking
questions about a problem that has to be solved through a project, which is shown as P 1,
then move on to read about the existing knowledge, K, on this subject. Armed with that
material, back you go to P1 to see if the explanations make sense, and then you can achieve
project and learning outcomes, P2.
But that cycle is not the end of it because, on the basis of what you have learnt, you will now
want to return to the questioning stage and repeat the whole process. In theory, you can
repeat the cycle yet again as each time your understanding will be refined by more practical
experience. Theory and practice, as you will discover, go hand in hand and this model helps
to show how this is achieved.

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Learning is an adventure, a journey of exploration. At AIB we encourage you to be bold, to


cross the line between the classroom and the workplace. We will support you along the
way and our hope is that the experience will be enjoyable as well as productive. There are
no limits to what you can discover, no end to the learning process.

Synopsis
Subject Code:

734NPM

Subject Credit Points:

10

AQF Level:

Associated higher education awards:

Graduate Diploma

Master of Business Administration


Pre requisites and presumed knowledge:
MBA core subjects (in particular AQF level 8 subjects) provide the foundation for
specialisation and elective subjects (AQF Level 9 subjects). Hence, relevant core
subjects should normally be attempted before progressing to specialisation and
elective subjects.
The objective of this subject is to provide in-depth knowledge of new product management
from conception through development to the launch of a new product or service. Topics
covered include: the new products process; planning for new products; generating product
ideas; concept evaluation; financial analysis for new products. It complements other
subjects in the MBA program such as Entrepreneurship, Strategic Marketing, Strategic
Management, and Strategic Operations Issues.
For information on the learning outcomes, course content, resources and assignment, please
refer to the following pages of this subject overview.
For any other information, please refer to the Student Handbook.

Learning Outcomes
This table lists the learning outcomes for the subject and shows how they are linked with the
assessment.

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AQFs
Subject LO
categories

On completion of this subject participants should be


able to:

Knowledge
LOs

Demonstrate in-depth understanding of new product


development concepts and frameworks and be able to
relate these to both physical products and to services.

Critically discuss the new product development process


and the various phases in the process.

Skills LOs

Assessed in
written
assignment

Identify appropriate sales forecasting and financial


analysis techniques to be used in new product
development processes.

Identify the public policy issues associated with new


product management, including product recall, product
liability and intellectual property protection.

Identify opportunities for new products, generate new


product ideas and evaluate product concepts.

Develop a new product protocol.


Application
LOs

Assessed in
exam

Apply new product management concepts to analyse


product innovation in an actual organisation.

x
x

Content
1. Introduction to new product management
The importance of new products
What is a new product and what leads to success?
The strategic elements of product development
2. The new products process
The phases in the new products process
Evaluation tasks throughout the new products process
Speeding the product to market
New service development
New-to-the-world products
3. Opportunity identification and selection: Strategic planning for new products
New product strategy inputs and identifying opportunities
The product innovation charter
Product portfolio analysis: the new products strategic fit
4. Generating new product ideas and concepts
Creativity and the product concept
Important sources of ready-made new product ideas
Finding and solving customers problems

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Analytical attribute approaches: introduction and perceptual mapping


Analytical attribute approaches: trade-off analysis and qualitative techniques

5. Concept evaluation
The concept evaluation system
Concept testing
The full screen process
6. Sales forecasting and financial analysis for new products
The ATAR model
Sales forecasting
Financial analysis using Net Present Value (notes) (level B) [Note that the textbook
assumes that students are already familiar with net present value techniques in new
product financial evaluation (for example, see the case Bay City Electronics in
Chapter 11). Because students may not yet have covered NPV analysis or may not
fully appreciate how it is used in new product analysis, it is useful to cover the basic
issues of NPV analysis in some additional notes/slides.]
7. The new product protocol
The product protocol and its purposes
The protocols specific contents
The protocol and the voice of the customer
The protocol and quality function deployment
8. Creating and testing the new product
Designing products and services
Prototyping the design
Managing the interfaces in the design process
Product use testing
9. Strategic launch planning and management
Strategic launch planning
Branding and packaging decisions
Market Testing
Launch management
10. Managerial and public policy issues for new product development
The new product development team
Public policy issues
Protecting your new idea/design - patents and intellectual property protection ]
[Note that the textbook does not address this important area of new product
management in sufficient detail. It can be very useful to include some basic notes
and/or a short talk from a local patents expert to explain the basics of local and
international patent and intellectual property laws pertaining to new products.]

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Resources
Prescribed Text Book
Crawford, CM & Di Benedetto, C 2015, New Products Management, 11th edn, McGraw Hill,
New York (ISBN: 9780078029042)
Please note that the 10th edition (ISBN: 9780071289238) is also suitable.
Required reading of journal articles
Topic 1
Cooper RG 1999, rom experience: The invisible success factors in product innovation,
Journal of Product Innovation Management, vol. 16, pp. 115-133.
Cooper RG & Kleinschmidt, E 1987, New products: what separates winners from losers?,
Journal of Product Innovation Management, vol. 4, pp. 169-184.
Schneider, J & Hall, J 2011, 'Why most product launches fail', Harvard Business Review, vol.
89, no. 4, pp. 21-23.
Townsend, W 2010, 'Innovation and the value of failure, International Journal of
Management & Marketing Research (IJMMR), vol. 3, no. 1, pp. 75-84.
Topic 2:
Cooper, RG 2008, 'Perspective: The Stage-Gate Idea-to-Launch Process: Update, what's
new, and NexGen systems', Journal of Product Innovation Management, vol. 25, no. 3, pp.
213-232.
Cooper, RG 2014, 'What's next? After Stage-Gate', Research Technology Management, vol.
57, no. 1, pp. 20-31.
Topic 3:
Cooper, R & Edgett, S 2010, 'Developing a product innovation and technology strategy for
your business, Research Technology Management, vol. 53, no. 3, pp. 33-40.
Kester, L, Griffin, A, Hultink, E & Lauche, K 2011, 'Exploring portfolio decision-making
processes', Journal Of Product Innovation Management, vol. 28, no. 5, pp. 641-661.
Ofek, E, & Wathieu, L 2010, 'Are you ignoring trends that could shake up your business?',
Harvard Business Review, vol. 88, no. 7/8, pp. 124-131.

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Topic 4:
Antorini, Y & Muiz Jr., A 2013, 'The benefits and challenges of collaborating with user
communities', Research Technology Management, vol. 56, no. 3, pp. 21-28.
Boudreau, K & Lakhani, K 2013, 'Using the crowd as an innovation partner', Harvard Business
Review, vol. 91, no. 4, pp. 60-69.
Topic 5:
Martinsuo, M, & Poskela, J 2011, 'Use of evaluation criteria and innovation performance in
the front end of innovation', Journal of Product Innovation Management, vol. 28, no. 6, pp.
896-914.
Topic 6:
Bower, P 2012, 'Forecasting new products in consumer goods', Journal of Business
Forecasting, vol. 31, no. 4, pp. 4-30.
Kelleher, M 2012, 'The art and science of new product forecasting', Journal of Business
Forecasting, vol. 31, no. 4, pp. 17-34.
Topic 7:
Afshan, N, & Sindhuja, P 2013, 'Integration of Kano's model into Quality Function
Deployment: a review', IUP Journal of Operations Management, vol. 12, no. 2, pp. 48-56.
Goffin, K, Varnes, C, van der Hoven, C, & Koners, U 2012, 'Beyond the voice of the customer',
Research Technology Management, vol. 55, no. 4, pp. 45-53.
Topic 8:
Gobble, MM 2014, 'Design thinking', Research Technology Management, vol. 57, no. 3, pp.
59-61.
Marion, T & Friar, J 2012, 'Managing global outsourcing to enhance lean innovation',
Research Technology Management, vol. 55, no. 5, pp. 44-50.
Topic 9:
Bertini, M, Gourville, J & Ofek, E 2011, 'The best way to name your product 2.0', Harvard
Business Review, vol. 89, no. 5, p. 36.
Topic 10:

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Cleeren, K, van Heerde, H & Dekimpe, M 2013, 'Rising from the ashes: how brands and
categories can overcome product-harm crises', Journal of Marketing, vol. 77, no. 2, pp. 5877.
Germeraad, P 2010, 'Integration of intellectual property strategy with innovation strategy,
Research Technology Management, vol. 53, no. 3, pp. 10-18.
Wang, S, Guidice, R, Tansky, J & Wang, Z 2010, 'When R&D spending is not enough: The
critical role of culture when you really want to innovate', Human Resource Management, vol.
49, no. 4, pp. 767-792.
Reference Texts
Aaker, DA 1996, Building Strong Brands, The Free Press.
Aaker, DA 1991, Managing Brand Equity, The Free Press.
Baker, M & Hart, S 2007, Product Strategy and Management, 2nd edn, Prentice-Hall.
Bobrow, EE 1997, The Complete Idiot's Guide to New Product Development, Alpha Books,
New York.
Brown, SL & Eisenhardt, KM 1998, Competing on the Edge: Strategy as Structured Chaos,
Harvard Business School Press, Boston, Mass.
Christensen, CM 1997, The Innovator's Dilemma: When New Technologies Cause Great Firms
to Fail, Harvard Business School Press, Boston, Mass.
Coope,r RG 2001, Winning at New Products: Accelerating the Process from Idea to Launch, 3rd
edn, Perseus Books, Cambridge Mass.
Cooper, RG & Edgett, SJ 2005, Lean, Rapid and profitable New Product Development,
Product Development Institute.
Cooper, RG & Edgett, SJ 1999, Product Development for the Service Sector: Lessons from
Market Leaders, Perseus Books, Cambridge, Mass.
Ettlie, JE 2006, Managing Innovation: New Technology, New Products, and New Services in a
Global Economy, 2nd edn, John Wiley, New York.
Gorchels, L 2012, The Product Manager's Handbook, 4th edn, McGraw Hill.
Farris, PW, Bendle, NT, Pfeifer, PE, and Reibstein, DJ 2010, Marketing Metrics: The Definitive
Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey.
Gruenwald, G 1997, How to Create Profitable New Products: From Mission to Market, 3rd
edn, NTC Business Books, Lincolnwood, Ill.

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Hartley, J 1992, Concurrent Engineering: Shortening Lead Times, Raising Quality, and
Lowering Costs, Productivity Press.
Hisrich, RD & Peters, MP 1991, Marketing Decisions for New and Mature Products, 2nd edn,
MacMillan Publishing, New York.
Kahn, KB 2013, The PDMA Handbook of New Product Development, 3rd edn, Wiley and Sons,
New Jersey.
Karol, R & Nelson, B 2007, New Product Development for Dummies, Wiley Publishing,
Indiana.
Kotler, P & de Bas, FT 2003, Lateral Marketing: New Techniques for Finding Breakthrough
Ideas, Wiley, New York.
Legge, J 1999, Product Management: Sharpening the Competitive Edge, Macmillan
Education.
Moore, GA 2014, Crossing the Chasm: Marketing and Selling Disruptive Products to
Mainstream Customers, 3rd edn, HarperCollins, New York.
Moore, WL & Pessemier EA 1993, Product Planning and Management: Designing and
Delivering Value, McGraw-Hill, New York.
Nayak, P & Ketteringham, J 1986, Breaktrhough!, Arthur D Little, New York.
Nonaka, I & Takeuchi, H 1995, The Knowledge Creating Company: How Japanese Companies
Create the Dynamics of Innovation, Oxford University Press, New York.
Rosenau, Jr MD 2000, Successful Product Development: Speeding from Opportunity to Profit,
Wiley and Sons, New York.
Trott, P 2011, Innovation Management and New Product Development, 5th edn, PrenticeHall.
Ulrich, KT & Eppinger, SD 2011, Product Design and Development, 5th edn, McGraw-Hill.
Urban, GL & Hauser, JR 1993, Design and Marketing of New Products, 2nd edn, Prentice Hall,
Englewood Cliffs, NJ.
Van de Ven, AH, Polley, DE, Garud, R & Venkataraman, S 1999, The Innovation Journey,
Oxford University Press, Oxford.
These texts will be contextualised to reflect the unique regional geographic circumstances of
the particular industry, enterprise or student/client group.

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Relevant journals
Academy of Management Review
Administrative Science Quarterly
Business Horizons
European Journal of Marketing
Harvard Business Review
Industrial Marketing Management
International Journal of Service Industry Management
Journal of International Marketing
Journal of Marketing
Journal of Product Innovation Management
Journal of Services Marketing
RandD Management
Research Technology Management
Sloan Management Review
Useful web sites
Intellectual property - a list of some international websites.
http://www.ipaustralia.gov.au/resources/international_sites.shtml
Design
www.baddesigns.com
www.cdf.org Corporate Design Foundation.
www.ideo.com
Ideas
www.thinks.com/brainteasers
www.ideafisher.com
Brands
www.landor.com
www.namestormers.com
Research and sales tracking
www.npd.com
Product development and innovation
www.pdma.org (Product Development and Management Association)
www.newproductworks.com
QFD
www.qfdi.com
Analytical Software
www.expertchoice.com

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Subject Overview

www.sawtoothsoftware.com

Assignment
Your task is to analyse product innovation in a local organisation in the light of the New Product
Management theory. The organisation could be your own or could be another organisation
you know. You might consider selecting a company that has been involved in recent new
product development or where there has been a notable success or failure.
There are two options for completing this assignment. You can choose whichever one of these
two you prefer:
Option 1. Investigate the organisations new product development process. This might
entail: finding out if the organisation has its own detailed process, exploring how the
process is used to develop new products, comparing the organisations approach to what
the textbook says, analysing what you have observed or found in order to discuss possible
recommendations for improvement. If there is no clear process in evidence, you might
discuss the type of process that the organisation could be using;
Option 2. Focus on just one of the topics covered in this subject and investigate how that
topic is applied in the organisation. For example, you might choose to investigate how
products are designed in the organisation; or how prototypes are devised; or whether or
not the organisation uses a product innovation charter, etc.
Write a report which includes:

Brief description of the organisation and the product or service you are interested in.
Detailed review of
o
the organisation's new product/service development process (for Option 1 above);
OR
o
the way in which the particular topic you have chosen to investigate is applied in
the organisation (for Option 2 above).
An analysis and comparison of the practical and theoretical approaches that you have
observed or been told about during your investigation. For a good analysis section you
should make sure to have done background work and have read relevant articles and
reports.
Conclusions and any recommendations for improved product management for the
organisation.

Important assignment instructions

The required word length for this assignment is 2500 words.

In terms of structure, presentation and style you are normally required to use:
AIB standard report format; and

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AIB preferred Microsoft Word settings; and


Harvard style referencing (which includes in-text citations plus a reference list).
These requirements are detailed in the AIB Style Guide.

Reference lists for AIB assignments / projects normally contain the following number
of relevant references from different sources: 6-12 (for MBA assignments).

All references must be from credible sources such as books, industry related journals,
magazines, company documents and recent academic articles.

Your grade will be adversely affected if your assignment contains no/poor citations
and/or reference list and also if your assignment word length is beyond the allowed
tolerance level (see Assessment Policy available on AIB website).

Useful resources when working on your assignments include:


AIB Online Library
AIB Assignment Guide
AIB Style Guide

Academic Integrity: Avoiding Plagiarism, Collusion and Other Issues


It is important to adhere to high standards of academic integrity. Academic integrity refers
to ethical, honest and responsible conduct in writing and reporting. Breaches of academic
integrity include:

Plagiarism submitting another persons words or ideas as your own without


appropriate acknowledgement and referencing.

Collusion submitting work as if it is ones own when in reality it has been completed
with others.

Fabrication submitting work with results or data that do not exist and that have been
made up.

Double submission submitting the same piece of work for more than one subject or
by more than one person.
Please note that AIB checks assignments for plagiarism (using Turnitin text-matching
software) and for other academic misconduct. AIB penalises work and/or people found to
have been in breach of academic integrity.
For more details please see Academic Integrity policy on AIB website.

Online Library User Guide


AIB uses the EBSCO Host online library. Below are the instructions on how to use the online
library.

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1.
2.
3.
4.
5.
6.

7.
8.

9.

10.

Subject Overview

Go to the AIB website www.aib.edu.au.


Click Student Resources.
Click Online Library.
Click on the link Access EBSCO Host which will take you to the login screen.
Once you can see the login screen, type in your user name and password that have
been provided to you.
Once logged in, you should be able to see the search bar.

Start your research by keying in different key words. Click search to get the search
results.
Review the article abstract or
the full text (depending on its
availability). Some articles may
be restricted and may need to
be purchased.
Refine your research by
checking any of option boxes
e.g. scholarly (Peer reviewed)
Journals. This is the most
credible
and
respected
resource for your research.
To learn more about EBSCO Host and how to fully benefit from its features you may
visit EBSCO Host Support and Tutorials site at http://support.ebsco.com/.

Online revision quizzes


AIB has created various online quizzes which it makes available on its website, to assist
students in undertaking their MBA course.
There is one quiz for each MBA subject. The purpose of the quiz is to provide students with a
self-assessment tool prior to sitting their exam.
The quizzes are not assessable and are merely provided to assist students with their study of
each subject. While it is not compulsory to use the quiz, we would highly recommend it.
To access the quizzes for your MBA subjects please visit this site:
http://www.aib.edu.au/www/pages/misc/quiz/mba
We trust that you will find these quizzes useful in your studies.

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