Stage/Gate Product Development Process

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    Product Development Process

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    Typical Problems

    Product development processes often lack

    formal methods for consideration, resourcing,

    documenting and management

    Lack of a formalized process limits perspective of

    where a product stands in its development cycle

    Resource allocation may not reflect reality of where

    product is relative to development cycle

    Product development and delivery schedule is difficult

    to validate without defined acceptance criteria

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    Solution

    Implement a gated approach to product

    development

    Allows for a formal stage by stage review of

    product as it goes through an identified product

    lifecycle

    Identifies decision makers and acceptance

    criteria necessary for advancement throughproduct development funnel

    Minimizes impact to schedule while focusing

    cross functional team on primary objective

    Obtain organizational consensus in

    implementing process

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    Product Concept

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    Preliminary

    Investigation

    Detailed

    Investigation

    Initial Screening Second ScreeningBusiness Case

    Decision

    Market Assessment

    & Business Plan

    Post-Planning

    Review

    Prototype

    Testing &

    Validation

    Pre-Commercialization

    Business Analysis

    Secure Funding

    & Launch Business

    Cash Flow Generation

    No-Go No-Go No-Go

    No-Go No-Go

    Gate/Stage Business Generation Model

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    Gate/Stage Business Generation: An Idea Funnel

    Gate

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    Stage

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    Stage

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    Preliminary

    Investigation

    Detailed

    Investigation

    Initial Screening Second ScreeningBusiness Case

    Decision

    Market Assessment

    & Business Plan

    Post-Planning

    Review

    Prototype

    Testing &

    Validation

    Pre-Commercialization

    Business Analysis

    Secure Funding

    & Launch Business

    Cash Flow Generation

    No-Go No-Go No-Go

    No-Go No-Go

    Product Concept

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    Gate/Stage Business Generation: An Idea Funnel

    Gate

    1

    Stage

    1Gate

    2

    Gate

    3

    Gate

    4

    Gate

    5

    Stage

    2

    Stage

    3

    Stage

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    Stage

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    Preliminary

    Investigation

    Detailed

    Investigation

    Initial Screening Second ScreeningBusiness Case

    Decision

    Market Assessment

    & Business Plan

    Post-Planning

    Review

    Prototype

    Testing &

    Validation

    Pre-Commercialization

    Business Analysis

    Secure Funding

    & Launch Business

    Cash Flow Generation

    No-Go No-Go No-Go

    No-Go No-Go

    Product Concept

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    Gates

    Project review and decision meetings

    Go/Kill decision points in new product process

    Projects are evaluated by management

    Resources are identified and allocated

    Poorly defined or validated projects are killed

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    Stage 1

    Preliminary Investigation or Concept Phase

    A quick investigation and scoping of any

    number of potential projects. Based largely ondesk research.

    Continual process for feeding product and

    project development funnel

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    Stage 2

    Detailed Investigation (Business Case)a

    more detailed investigation where market

    analysis, product definition, project

    justification, and project plan are proposed

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    Stage 3

    Development Stageactual design anddevelopment of product take place,including internal verification and testing of

    products features and functionalityComplete production and marketing plans are

    developed in this stage

    Defines and develops the various individual

    components that make up the final product Hardware, Software, Interface, Packaging, etc.

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    Stage 4

    Testing and Validationvalidate all

    commercial facets of the product and

    project

    Includes tests and trials in the marketplace, lab

    and plant.

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    Stage 5

    Full Production and Market Launchfull

    commercialization stage

    Marketing, production/operations, distribution,

    Quality Assurance, and post-launch monitoringand sales plans are executed

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    Stage 6

    Life Cycle Management / Post

    Implementation Review

    Validates products market success against

    business plan expectations

    Identifies threats to products continued

    production and sale

    Considers ongoing improvements