The Stage-Gate method from Robert G. Cooper is an approach that can
be used to make the product development process more effective. It is
a blueprint for managing the new product process. From an idea to launching
a product. In a number of predetermined steps, or stages. Each
stage consists of a set of certain cross-functional and parallel activities
which must be successfully completed prior to obtaining management approval
to proceed to the next stage of product development. The entrance to
each stage is called: a gate. These gates, which are normally
meetings, control the process and serve as:
Quality control
Go / Kill check-points. Readiness-checks, Must-Meet criteria,
and Should-Meet criteria.
Marker for action plan for the next phase.
Stage-Gate is a registered trademark of Product
Development Institute Inc.
Origin of the Stage-Gate methodology. History
The method is based on the experiences, suggestions and observations
of a large number of managers and firms in over 60 cases as observed
by Robert Cooper. The term "Stage-Gate" first appeared in an article
by Cooper in The Journal of Marketing Management, 3, 3, Spring 1988.
An even earlier version can be found in Cooper's book: "Winning at New
Products", 1986.
Usage of Stage-Gate. Applications
Product Development, Innovation.
Component of Portfolio Management.
Steps (stages) in the Stage-Gate model. Process
The Stage-Gate process is preceded by a Discovery stage, which
was added in a later version of the original model which had only 5
phases. It contains pre-work designed to discover opportunities and
to generate new ideas.
Scoping. A quick, preliminary investigation of each project.
Provides inexpensive information by desk research to enable narrowing
the number of projects.
Build the Business Case. A much more detailed investigation
by primary marketing and technical research. The business case must
include a product definition, a product justification and a project
plan.
Development. A detailed design and development of the new
product, along with some simple product tests. Also a production plan
and a market launch plan are developed.
Testing and Validation. Extensive product tests in both
the marketplace, the lab and the plant.
Launch. Beginning of full production, marketing and selling.
Market launch, production / operations, distribution, quality assurance.
Post-Launch Reviews are performed.
In reality, it is necessary to drill down further into the sub-activities
to provide detailed and operational instructions for the innovation
team.
Strengths of Stage-Gate methodology. Benefits
Well-organized innovation can be a source of competitive advantage.
Accelerated product development. Necessary because of shortening product
life cycles.
Increased success chance of new products. Prevents poor projects early
and helps to redirect them.
The model breaks down the complex innovation process in large corporations
in a number of smaller pieces.
Provides overview, which enables prioritization and focus.
Integrated market-orientation.
Cross-functional. Involves input and participation of employees from
various functions in the organization. No separate R&D or Marketing Stage.
But see above Discovery.
Can be combined with various performance metrics, such as
Net Present Value, etc.
Limitations of Stage-Gate. Disadvantages
Although within a stage activities can be conducted in parallel, the
Stage-Gate approach is basically sequential (waterfall). Some innovation
experts believe that product development should actually be organized in
parallel, using loops.
The original Stage-Gate framework did not deal with the Discovery process
and the activities to create new ideas.
A tension exists between organizing and creativity. Both are very important
within innovation.
Book: Robert G.
Cooper - Product Leadership - Pathways to Profitable Innovation
Forum discussions about Product Development. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.
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Information Sources
Various sources of information regarding Product Development. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.
Innovation of Product Development Processes To create new products, firms employ a product development process (PDP) to generate new product concepts, to translate ...
Innovation Management, Managing Creativity, Managing Creative People, Fostering Creativity in Organizations, Creativity This presentation elaborates on the management of creativity in organizations, and includes the following sections:
1. ...
Innovation, Team Work, Multicultural Teams, Bureaucracy, Multi-Functional Teams In innovation you need a team of people with the right mix: the members should come from different departments like Mark...
Innovation Management, Managing Innovation, Managing Innovative Employees, Managing Creative Employees Presentation about Innovation and Creativity, thereby mainly focusing on creativity in organizations. The presentation i...
Concept Test, Concept Statement, Conjoint Analysis, Product Design, Product Innovation Presentation about concept testing and conjoint analysis, including the following sections:
1. Evaluating with Customer...