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wo Kinds of Innovation ? Incremental product innovation – results in gradual improvements and refinements to existing products over time as existing technologies are perfected, and functional managers learn how to perform valuechain activities in better ways 37 Strategies to Promote Innovation and Speed Product Development ? Product development – management of the valuechain activities involved in bringing new or improved kinds of goods and services to the market 38 Strategies to Promote Innovation and Speed Product Development ? Involve both customers and suppliers ? Establish a stagegate development funnel ? Establish crossfunctional teams 39 Strategies to Promote Innovation and Speed Product Development ? StageGate Development Funnel – technique that forces managers to make choices among peting projects so that functional resources are not spread thinly over too many projects 40 A StageGate Development Funnel Figure 41 A StageGate Development Funnel ? Product development plan – specifies all of the relevant information that managers need to make a decision about whether to go ahead with a fullblown product development effort 42 Members of a CrossFunctional Product Development Team Figure 43 Managing the ValueChain: Some Remaining Issues ? It is manager’s job to collect relevant information about the petitive environment 1. Future intentions of petitors 2. Identity of new customers 3. Identity of new suppliers 44 BoundarySpanning Roles ? BoundarySpanning roles – Interacting with individuals and groups outside the anization to obtain valuable information from the environment 45 The Nature of BoundarySpanning Roles Figure 46 Movie Example: You’ve Got Mail How well do the workers respond to customers in the Fox Bookstore? 47