New Product Development

1020 Words Oct 4th, 2008 5 Pages
To answer the question “What are the factors that made Schwan focus extensively on innovative product development initiatives“there are to state two main points.
The first arises from the changing dynamics of the frozen pizza business in the country. For the last decade, the frozen pizza market was growing the fastest within the entire US frozen food industry, reporting at a rate of 29,2% between 1995 and 2000. This was caused by the introduction of the ‘rising crust’ technology, through which frozen pizza got almost the quality of the pizza offered in restaurants. This had a declining effect on the other three segments of the pizza branch (dine-in, take away and home delivery), because now having almost the same quality, frozen pizzas
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The success and the most important function of these teams is based on effective communication. Therefore, at every step in the innovation process every single member has to be exactly informed about proceedings and stated decisions. Concerning this you can criticize it as being very time consuming and considering that in reality often communication problems occure great differences may arise by a failure in the communication process.
Moreover, it is very important to set clear goals and guidelines for the groups and their members depending on their expertise. If this lacks it is not ensured that all team members treated optimal resource utilization as a priority issue and conflicts of competence and responsibility may come across.
Although it is considered that by involving people early a lot of development time is saved through building team support, momentum, excitement and enthusiasm, it can also be the other way around. You just have to think about arising problems in the team with the effect that the whole developing process suffers from this situation, or people are to busy by dealing with their personal relationships instead of working intensively.
Later in the development process the different departments work on their explicit subject in the process (see point 2), so each department plays a key role, but communication between them is still the key to success. Therefore, a communication process initiated from the cross-

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