Wu, M.F.a 
, Chang, P.L.b 
a Department of Industrial Engineering and System Management, Feng Chia University, Taiwan, Taiwan
b Department of Business Administration, Feng Chia University, Taiwan, Taiwan
Abstract
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. © 2011 Academic Journals.
Language of original document
English
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Author keywords
Activity-based costing (ABC); Analytical hierarchy process (AHP); New product development (NPD); Pre-development stage; Return on investment (ROI); Stage-gate model
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