Stage Gate Method for Structured Innovation

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School of Business and Economics | TIME Research AreaTechnology and Innovation Management Group (TIM)

The Stage-Gates, Idea-to-Launch Process - Update,

What’s New and NexGen SystemsSummer Term 2016

Session 2 – Group 1.1 – Paper Presentation


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© Group 1 1 Innovation Management

TIME Research Area | Technology and Innovation Management Group (TIM)

AGENDAStage-Gate, Idea-to-Launch Process-Update, What’s New, and NexGen Systems

Introduction

Paper Description

Myths | Challenges | Future Scope

Paper Analysis

Deductions and Assumptions| Impact on Innovation

Paper Discussion

Strengths and Weaknesses| Possible Refinements and Extensions

Conclusion


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© Group 1 1 Innovation Management



Introduction

Paper Description


Paper Analysis


Paper Discussion


Conclusion


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© Group 1.1, Innovation Management


Introduction | Stage-GateOrigin and Method Description

“A Stage-Gate process is a conceptual and operational map for moving new product

projects from idea to launch and beyond”

Blueprint for managing the new product

development (NPD) process to

Improves effectiveness and efficiency.

Stages

The innovation process is series of stages

Each stage composed of a set of required or recommended best-practice activities

GatesGates serve as quality–control check points, go/kill and prioritization decisions

points

Points where the path forward for the next play or stage of the project is agreed to.

Source: Robert Cooper J Prod Innov Manag 2008


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Introduction | Stage-GateTypical Stage-Gate System

Source: Robert Cooper J Prod Innov Manag 2008

Fig. shows typical Stage-Gateschematics which was primarilydeveloped.

Details of a Stage-Gate pair




Introduction | Stage-GateStage-Gate In New Product Development

Source: Robert Cooper, J Prod Innov Manag 2008





Introduction

Paper Description


Paper Analysis


Paper Discussion


Conclusion




Paper Description | Overview of thoughtsBrief Contents

Myths about Stage Gate and its implementation

Challenges in Implementation of Stage Gate

Next Generation Stage Gate




Paper Description | Stage-GateMyths of Stage-Gate


Similar toProject

Management

Phase ReviewProcess

Rigid Lock StepProcess

Linear System

Project control

Mechanism

Dated,StagnantSystem

BureaucraticSystem

Back End/Product Delivery

Process

Data Entry

Scheme

Myths




Paper Description | Stage-GateMyths of Stage-Gate


Similar toProject

Management

Phase ReviewProcess

Rigid Lock StepProcess

Linear System

Project controlMechanism

Dated,StagnantSystem

BureaucraticSystem

Back End/Product Delivery

Process

Data Entry

Scheme

MythsMyths




Paper Description | Stage-GateChallenges in implementation of Stage Gate


Challenges

• Gates with no Teeth

• Hollow Decisions at Gates

• Gate Keepers behaving badly

Making GatesWork

Misapplying costcutting models to

innovation projects

No Pain NoGain

ExpectingImpossible from a

Process

Too much relying

on software assolution

Portfolio Management

without stage gateprocess

Too muchbureaucracy in Idea

to Launch process

• Deliverables overkill• Demanding much

non-value addedwork in stages

TIME R h A | T h l d I ti M t G (TIM)




Paper Description | Stage-GateNext Generation Stage Gate


An adaptable

process

Scaled to suitedifferent risk-level

projects

An open system

Accountability, reviewand Continuous

improvement

A FlexibleProcess

Accelerating thegates

More Effectivegovernance

Next-Gen Stage-Gate

TIME R h A | T h l d I ti M t G (TIM)


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Introduction

Paper Description


Paper Analysis


Paper Discussion


Conclusion



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Paper Analysis | Deductions and AssumptionsThe importance can increase with growing need for innovations butwill face bigger challenges in future

SIGNIFICANCE&

IMPORTANCE

• One of the fundamentals for managing innovations and launching products to market.• Being implemented by all major firms.

EVOLUTION

• The initial structure has undergone several modifications as per real life requirements.• The process has evolved to meet modern fast paced needs. Also been segregated as per

industry size.

SURVIVAL

• Flexibility as per industry requirements ensures the process to be present in the future.• Innovation will remain forever and so it needs to be managed

CHALLENGES

• Misinterpretation and failures of major firms can question the process.• Alternative processes with more industrial acceptance can make this process ineffective.




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Paper Analysis | Impact on InnovationInterpreting the impact on innovativeness of countries

Stage Gate Process

Origin: USA

Author: Dr. Robert

G. Cooper

Company: Stage

Gate International

Used by 80% and more firms in

North America

USA is the

most

Innovative

Country

In 2008 Japan was the leading innovative country and presently South Korea. But still Japan,

Germany and Finland have always been more innovative than USA.

Source: THE BLOOMBER INNOVATION INDEX, Economist Intelligence Unit report (CISCO)



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Introduction

Paper Description


Paper Analysis


Paper Discussion


Conclusion



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Paper Discussion | Strengths and WeaknessesResearch Paper – Structure

Strengths:• The Paper maneuvers well through the

topic, starting with Introduction of StageGate, to busting the myths on StageGate and introducing to the New Age

Stage Gate of the next generation.

• The paper emphasizes and supports thepoints with real time industrial examples,complementing and reiterating thewriters point of view.

Weaknesses:• The author presents the Paper in a

more defensive mode, defending thelikes of using a Stage Gate against itsmisuse.

• (Ex:- The author criticizes and citesfailed examples of companies on themodification and combination of StageGate in the early stage of the paper andequally applauds the use of Lean plusStage Gate by J&J and P&G’s SIMPL(P&G’s version of Stage Gate).




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Paper Discussion | Strengths and WeaknessesResearch Paper – Content

Strengths:• The author furnishes and explains real

time examples of Stage Gate fromdifferent Industrial backgrounds,emphasizing on the vast applications of

Stage Gate as a system.

• The author presents his paper as awhistle blower, educating the readers onthe importance of using Stage Gatebetter as a system.

Weaknesses:• The author doesn’t provide any

statistics supporting the successfulimplementation of Stage Gate insuccessful companies.

• The author leaves a grey zone in hisown argument on the combined usageof Stage Gate with any other system bymentioning the successful combinationof Lean system and Stage Gate by J&J.

• The examples mentioned in the paperare mostly emphasized on Americancompanies and about Americaneconomy.




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Paper Discussion | Questions and RefinementsResearch Paper – Structure and Content

Questions:• “Gates are rated one of the weakest areas

in product development, with only 33% offirms having rigorous gates throughout theidea-to-launch process. Further, only 56%

of development projects meet their salestargets, which means gates are not doingtheir job: Too many bad projects and toomany projects in trouble sliding through”.• The Stage Gate process could be

evaluated and audited by external orinternal sources (experts), or

implementing Best Practices from othercompanies, thereby helping the teamsget the better idea of a Stage Gateprocess, hence avoiding a processfailure and also inhibiting continuousimprovement.

Refinements:• The author could have presented real

time statistic data to support his theory ofStage Gate success,• Eg:- providing a statistics of number

of companies employing Stage Gateagainst the companies successfulinnovations would have addedweight to the author’s argument.

• The author presenting case studies ofStage Gate success may encourage

companies to work on implementingStage Gate better.




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Paper Discussion | Questions and RefinementsResearch Paper – Structure and Content

Questions:• “Lean Manufacturing methods work well

in the factory to reduce waste and non-value-added activities - manufacturing isa very different process from innovation”.

• The example of J&J using Leansystem in combination to StageGate, to decide on a project in just 3days is an example to the abovequestion raised by the author in hispaper.

• With Market timing pressure on

companies, combining anothersystem with Stage Gate may yieldbetter and faster results.

Refinements:• The author could have given a mention

of examples of smaller organizationsemploying Stage Gate, also mention ofglobal companies employing Stage

Gate could show global presence ofStage Gate.




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Introduction

Paper Description


Paper Analysis


Paper Discussion


Conclusion



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CONCLUSION | Impact on InnovationPaper points out the Myths, provides Solutions for common failuresand also explains on how to Make it Work

MYTHS

• IT Tools does not solve everything. It helpsin communicating.

• Over sized reports by Project Teams. For eg.P&G prepare Gate reports of 2 pages

DEALING WITH COMMON

ERRORS & FAIL POINTS

• For eg. GE tried to implement6Sigma(Cost Reduction) into their StageGate without adding more resources(failed).

MAKING IT WORK

Stage-Gate Has Been Adapted to Become an Open Innovation Model

NEXT GENERATION STAGE-GATE




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CONCLUSION | THEN & NOWThe changing demands and complexities of Stage-Gate Process.

• Feasibility in futuregeneration of Innovation.

• Effectiveness in GlobalMarkets and especially indeveloping innovativenations.

• Successful integration ofLean Methodology inStage-Gate Process toreduce ProductDevelopment Time.




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Group 1.1, Innovation Management | [email protected]

QUESTIONS AND DISCUSSIONThank you for your attention

Source: Marketoonist.com

FurtherDiscussions…....



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LITERATUREKey references

Robert G Cooper, 2008. The Stage-Gates, Idea-to-Launch Process Update, What’s New andNexGen Systems, Production Innovation Management, 25, 213-232.

Scotte J. Edgett, Robert G Cooper, 2012, Best practices in Idea to Launch Process and itsgovernance, Research Technology Management, April 2012, 43-54.

Michelle Jones, Scotte J. Egdett, Evolving the way you Innovate, Retrieved from

http://www.stage-gate.com/resources_stage-gate_evolve.php

Stage Gate Method for Structured Innovation

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