Developing new products in the market is a very hard task for it requires complex courses of action before successfully launch into the market not to mention the risk of low market acceptance coming from the target consumers. Nevertheless, product development also serves as the avenue towards impressive company growth if the product would fit to the tastes and preferences as well as captures the demand of the consumers in the market. Therefore, to some extent, product development is vital to the existence of any company in the market. In order to secure the success of the development of product, there is one model that one could use and that is the Corning’s Five Stage process. At this point in time, it is important to determine the effects of the said model in the entire operation of a company like in the leadership, individuals, inter-organizational network and organizational learning process.
Effects on Leadership Process
Innovation is very vital in order for a certain company to secure its market influence against their competitors. Due to this, leaders must develop a winning strategy to secure a successful penetration of their new products. Majority of leaders in the corporate world are currently using the five-stage stage-gate process to guide them in making the right decision in launching their new products in the market. Almost 80 percent of North American companies are already using the said technique that improves the returns on the former’s product development and enjoy impressive company growth (Asongu, 2007). With a proper implementation of five-stage stage-gate process, there is a great possibility of experiencing “speed-to-market acceleration”, boost in the probability of product success, infusion of discipline in a naturally chaotic process, lowering down of wastes and revisions, improvement in focus through gates where low quality projects are eliminated. Therefore, it is clear that the five-stage stage-gate process provide ease in the leadership process of companies that uses the said technique.
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Effects on Individual Process
It was identified that Stage-Gate System alleviates the individual productivity due to the fact that it supply “conceptual and operational road map” in executing project concerning new products from idea to launch. Since the said system suggests team work, therefore, each worker or employee of the company could learn from one another and the synergy benefits the concerned company. Moreover, the clear outlined and unique stages of the said system makes it easy on the part of the workers or employees of the company to know what are their role and responsibilities in the development of company’s new product.
Effects on Inter-Organizational Network
Due to the achievement of the Stage Gate System, many leading companies in the market starts to have chances to overhaul their new product process, integrating all the critical success factors that were discovered in the course of best practice research. I was stated a while ago that almost 80 percent of the major US product developers are currently using several kind of Stage Gate process in developing new products for their company. Inter-organizational networks, through the guide of Stage Gate System, have been able to find road maps for moving the development of their new product from idea to launch as a team. Therefore, at the end of the day, the roles and responsibilities of the members of the cross functional team of the concerned company will be able to finish by them.
Effects on Organizational Learning Process
One of the worries of the organizational leaders would be regarding the success of their newly innovated product or service. But through the use of the Five-Stage Stage-gate Model, organizational leaders would now have the ability to check the quality of the said innovation. Therefore, the said model transformed their methodology in product development into a faster, leaner and more effective tool that will ensure the success of the market penetration of their new product or service.
- Asongu, J. J. (2007). An Analysis of the Five-Stage Stage-Gate Process. Retrieved February 1, 2008, from http://asongu-works.blogspot.com/2007/09/analysis-of-five-stage-stage-gate.html
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