NEW PRODUCT DEVOLEPMENT

ORGANIZATIONAL STRUCTURE

ASSIGNMENT
SUBMITTED BY

AARATHY S

MBA T5 A

REG NO: MGP16MBA01

Product Development
Organization Chart
– Product Development
– Engineering & Design
– Idea Generation
– Product Management
– Product Packaging
– Product Quality & Safety
– Product Testing
– Research & Development (R&D)
Product Development

– Companies often see product development as the first stage of generating and
commercializing a new product or service within the overall strategic process
of lifecycle management.
– Product development is also used to maintain an existing product or grow
current market share.
– Modern Product Development involves research, design, testing, positioning,
differentiation and several other facets.
 Engineering & Design

– The Engineering & Design function works closely with the R&D and Market Research
teams to identify the goals of the product or service and design a solution that will meet
the defined consumer demand.
– The group develops detailed product specifications, builds prototypes (which are then
evaluated by the product testing function) and continuously improves the design of the
product until it is brought to market (and even after).
Idea Generation

– The Idea Generation function is tied closely to R&D and is responsible for
identifying market problems and devising ideas (concrete or abstract) to overcome
the identified market gaps.
– Many companies have started to include job roles dedicated solely to the
development of market 'disrupting' ideas.
– Idea Generation, or Innovation, team members assess and present ideas to
company leadership in hopes of capitalizing on, or identifying, the 'next big thing.'
– After an idea has been selected for further development, other Product
Development team members get to work designing prototypes and performing
market testing to further assess the viability of the concept.
Product Management

– The Product Management function oversees the development of new products

and drives marketing strategy, branding, profit/revenue goals, product
adjustments and market positioning across a company's line of products.
– Product Managers work closely with several areas, including marketing,
engineering (in some cases), product development, research and sales, to
maximize product revenue, market share and profit margin.
– They are responsible for managing products throughout their lifecycle and
ensuring that the necessary adjustments are made to meet the goals (revenue,
market share, profit margin targets, etc.) established by company management.
Product Packaging

– Product Packaging employees are tasked with overseeing all aspects of

product packaging - design, materials procurement, package testing and full-
scale production.
– The team works closely with R&D to research, develop, test and validate new
packaging solutions.
– The packaging group implements and tracks packaging cost savings (lower
costs, standardization, flexibility, etc.) to meet budgets and goals set by
management.
– They ensure packaging meets industry standards, best practices, company or
regulatory requirements and consumer expectations.
Product Quality & Safety

– The Product Quality & Safety function is responsible for assessing product
quality and preemptively avoiding mistakes in the manufacturing process that
could cost the company millions in lost materials and time (or even worse,
cause a hit to customer satisfaction or public perception).
– Product Quality groups use statistical control as a tool to track quality data
and prevent future errors. The group works with internal customers for testing
and serves as a technical resource in regards to product specifications and
manufacturing details.
– They may also work to mitigate risks associated with regulatory fines or
consumer lawsuits.
Product Testing

– Product Testing employees are responsible for performing consumer tests and
surveys to measure consumer demand and provide R&D and
Engineering/Design staff with feedback on current product/service designs.
– They work to build focus groups and test audiences that are aligned with the
demographic being targeted by a particular product or service.
– The Product Testing function may also perform internal tests to assess the
viability of a product or service.
Research & Development
(R&D)
– The R&D function is responsible for researching product requirements,
limitations, intellectual property (IP) opportunities or constraints (patents,
trademarks, trade secrets, etc.), technical specifications and other aspects
vital to the development of a new idea or product offering.
– They report their findings to the product engineering/design and product
management groups.