African Journal of Business Management Vol. 5(6), pp.2445-2454, 18 March 2011
ISSN 1993-8233 ©2011 Academic Journals
Full Length Research Paper
Assessing mechanism for pre-development stage of new product development by stage-gate model
Wu Mei Fang1* and Chang Pao Long2
1Department of Industrial Engineering and System Management, Feng Chia University, Taiwan, Republic of China.
2Department of Business Administration, Feng Chia University, Taiwan, Republic of China.
*Corresponding author: E-mail: firstname.lastname@example.org .Tel: +886-4-24517250 ext 3627, +886-955-041647. Fax: +886-4-24510240.
Accepted 23 November 2010
The fast-paced changes in production technology and keen globalization competition have caused product life cycles to be shortened greatly and have appeared to highlight the role of new product development. New product development will not only promote the competitive advantage but will also keep the organization survival. This paper focuses on the pre-development stage of the new product development because each stage input costs will be more than the preceding one. Therefore, this paper uses the scoring model and financial method in stage-gate model, and combined with AHP, ABC and ROI methods, to construct a stage-gate funnel model of pre-development stage for filtering the creative and innovative projects assessment mechanism of new products. This paper suggests that using this integrated, objective and precise mechanism will increase the successful opportunities of new product and promote the operational effectiveness of organizations.
Key words: Stage-gate model, pre-development stage, new product development (NPD), analytical hierarchy process (AHP), activity-based costing (ABC), return on investment (ROI).
Fang and Long. Assessing mechanism for pre-development stage of new product development by stage-gate model. Afr. J. Bus. Manage.