Innovation is the process of knowledge generation, development, and diffusion to create profitable new products, processes, or services for the organisation.
Global environmental changes have increased the need for international firms to effectively manage innovation in complex organisational structures, select strategic portfolios, reduce lead times and development costs, and improve the quality and effectiveness of implementation.
This report evaluates the development and implementation of a Stage Gate innovation project management process in a global company against current thinking on new product development and R&D management, focusing on the use of formal versus flexible and adaptive processes.
The research outcome was suggestions for improvement in innovation management processes for the firm, and an evaluation of Stage Gate.
The findings show that Stage Gate has had positive impact on the firm's new product development successes, improved management of existing innovations, and accelerated current projects. In isolation, Stage Gate does not enhance entrepreneurial processes necessary to attain distinctive capability through innovation. Stage Gate is a resource intensive process that should be selectively used for highly innovative, complex, high potential innovations.
Development of entrepreneurial processes for global technological advantage, speed, and flexibility, requires not only new product development mechanisms such as Stage Gate, but other effective interlocking processes and strategies for idea generation, fostering entrepreneurship, and technological leverage.