MIB601

Innovation and New Product Development

(One of the 5 electives under marketing cluster)

Tuesday 9:30am-12:30pm (SEK206)

2nd Term 2015-16 (Jan 11- Apr 29)

PENG, Ling
Creative Individuals
Creative individuals have a few
distinctive features that
distinguish them from their peers.
They have a rich body of domain-
relevant knowledge and well-
developed skills;
They find their work intrinsically
motivating.
They tend to be independent,
unconventional, and more risk-
taking, and to have wide interests
and a greater openness to new
experiences.
Creativity and Innovation are
skills, can be developed and
improved.
Why Study New Products?
 Reason 1: New products are big business!

 Uncounted new products are marketed every year

 $100 billion spent annually just on technical phase

 A single website may market hundreds or thousands of

products

 For many leading firms, a third or more of sales comes

from products that are less than five years old, even 49% for
top-performing firm.
 Reason 2: Investment in innovation is
critical to future growth & even survival !

 A successful new product does more good for an

organization than anything else that can happen
  Reason 3: New products process is
exceedingly difficult!

 Example of failures: New Coke; Failure rate: ~40%

 Reason 4: NPD is fun and exciting!

 Most new product people are essentially creative in their

management style, lifestyles, attitudes
 Course Objectives
• To prepare students to function as effective innovation and
new product managers
• To understand how firms can improve the way they
manage their new product development processes
• To keep up-to-date with the most recent developments in
the innovation field

Required Textbook:
Crawford, Merle and Anthony Di
Benedetto, New Products
Management, Eleventh
edition, McGraw-Hill
International Edition, 2015.
 Teaching Methods and Materials
The course will be taught using interactive methods and techniques:
• Group activities and discussion
• Videos of guest speakers
• Case studies and analysis

• All teaching materials

will be uploaded to
Moodle
• Given that the subject
area is developing
very fast, no single
textbook is fully
suitable
• The lecture notes
draw upon a variety of
sources (will not fully
follow any of the
textbooks)
 Course Content
• Part I: Innovation - introduces and explores the concepts of
innovation and creativity. Concepts and issues include the importance of
innovation, the changing views of innovation over time, two frameworks
of learning innovation, and models of innovation, the meaning and
nature of innovation management, role of creativity in innovation.

• Part II: New Product Development - reviews and

summarizes the nature and techniques of new product development. It
looks at the process of developing new products and examines many of
the new product management issues faced by companies during the new
products process: (1) strategic planning for new products and
opportunity identification and selection, (2) ideation / concept
generation, (3) concept/project evaluation, (4) development and (5)
strategic launch planning and implementation.
 Assessment Components
 Continuous Assessment: 70%
Class Participation 15%
Individual Essay 25%
Group Concept Test Project 30%

 Final Examination 30%

 Course Requirements
Class Participation & Discussion (15%)
In-class discussion & exercises are given to assess students’
understanding on the concepts and techniques.
Individual Essay (25%)
Students are required to review one recently published academic
article. Students need to summarize the key insight(s) and explain how
they can apply those concepts, theories and principles to real
innovation and NPD problem situations.
Group Project (30%)
Students are required to stipulate the firm that is developing a new
product/service, spell out an appropriate product innovation charter,
conduct a small scale concept test, present the testing results and
follow up recommendations.
Final examination (30%)
The exam requires students to apply what they have learned to address
the case and general essay questions.