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Why Stage Gate Process?

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by

Ga Schmie

on 22 November 2015

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Transcript of Why Stage Gate Process?

Increasing
Why do we need
a
stage gate process
?
Innovation Rate
1
Too many me-too products
* no unique customer benefit
* too much emphasis on
extensions and modifications
* inadequate analysis of
competitors and customer needs
2
Not enough front-end homework
* Assumptions but no facts
* Little effort to validate assumptions
* Often due to lack of resources
3
Lack of customer insights
* Voice of the customer!
* Missing customer orientation
during the innovation process
4
Insufficient product definition
* No sharp definition of product (target market, benefits, features, price etc.) before development begins

5
6
No real project teams
* Each function trying to work alone on its part
* Too less cross-functional work
Overcoming failures by implementing a stage gate process
improved
teamwork
higher
success rate
earlier detection
of failures
better
launch
shorter product to market
WHY?
Robert G. Cooper
Cooper is one of the most influential innovation thought leaders in the business world today

Published 100 academic articles and 12 books

Father of the Stage Gate Innovation Process
Cooper and his team studied 3000+ product development teams and companies to
find out commonalities in the field of product development for more than 30 years
Worldwide Leading companies
implemented
Stage-Gate Process

WHAT?
What project types are inside the
stage gate process?
NEW PRODUCTS &
TECHNOLOGIES
in existing or new markets
longterm perspective
STAGE GATE - FULL Version
in existing marktes
midterm perspective
STAGE GATE - LIGHT Version
pull
innovation
MODIFICATION and IMPROVEMENT of PRODUCTS & TECHNOLOGIES
shortterm projects for improvements without research character are no stage gate projects
Idea Input Form

http://intranet/iif
for employees
Idea Portal
for stakeholders
http://www.ats.net/products-technology/research-development/idea-portal/
The
goal of stage 1
is to gather information, verify benefits and investigate opportunities and boundaries:
Structure
Work of project team based on project plan
Analysis of the output of all activities
Presentation of the of the analysis
WHO?
Who are the main players in the stage gate process?
Project Leader
Responsible for

* driving a project from start to the end

* providing deliverables at the gate review meetings


Project Team
* from different departments or functional areas

* supporting the project leader


Project Sponsor
is a gate keeper that

* orders the projects

* first contact person for project leader


Gate Keepers
Management Group that

* consult the project leader in definition of goals and selection of deliverables

* makes go/kill/loop decisions

* own resources and allocate them


SGP Coordinator
Responsible for

* supporting project leader in setting up and administrating the project

* maintenance of database and process


* Outline gap between own and
required capability to achieve
successful market launch
* Gain information on technology, potential markets, customers and product requirements

* Describe business potential
* Understand & discuss benefits (own/customer benefit,
financial, strategic, competitive, ...)

* Investigate risks and identify stoppers (IP,
substitutive technology, ...)
The
goal of stage 2
is to demonstrate the technology, identify target customers and applications, quantify business potential:
* Conduct IP research
* Demonstrate technical feasibility of critical elements (proof of functional concept)
* Identify key quality factors and end user needs/requirements
* Identify target markets, customers and applications

* Conduct a business case estimation
* Identify technical gaps and obstacles
The
goal of stage 3
is to overcome remaining technical issues and market concerns before the industrialisation
* Establish customer-company interfaces (technical, quality, product management)
* Develop a preliminary Business Case
* Identification of lead customer and early adopters
* Start Prototyping

* Marketing strategy, Sales forecasts, cost breakdown
* Secure IP - ensure freedom to operate
* Build supply chain
* Resolve legal issues
The
goal of stage 4
is a fast and frictionless transfer into production
* Fully established customer interfaces
* Successfully transfer technology, data and know-how from developing team to industrialization team
* Prepare infrastructure and equipment installations
* Execute product qualification
* Develop sales forecast/plan
* Define internal responsibilities
* Trained work and sales force
* Final release achieved
Too many projects in the
pipeline


* Under-resourced projects
* Less profitable projects
get not killed
HOW?
How does the stage gate process model work?
... a funnel, no tunnel
Many small projects in...
... many low-impact products out
Innovation Pipeline
Many small projects in...
... few high-impact products out
Innovation Pipeline
A stage-gate process turns ideas into innovations by killing unpromising ideas and support highly-impact projects
WHERE?
Where does stage gate
fit within AT&S?
Innovation
Management
as process owner
STAGE GATE PROCESS

the next generation
Improved usability and simplification

Lotus Notes database to easily track & control project progress

Microsoft Sharepoint as data storage & exchange
(Knowledge Management)

Simplification and less administration
Leaner process by elimination of redundant process steps regarding approvals
*
Process approval and release of changes only by sponsor, no
need for entire Gate Keeper team

Faster process flow by improved reporting
*
Data for conducting the monthly status reports are mainly
inserted by Controlling department

Easy access to all stages by Gate Review Meetings
*
Projects can be started in any stage, no need to execute all
stages
Advanced Toolset
Elimination of redundant tasks (Key Deliverables)

Highlighting of critical Key Deliverables for success

Improvement of Key Deliverables for efficient implementation and support for the project team
*

Providing easy to use templates
*

Recommendation and manuals for suitable tools
... it's your decision
to shape the future by having an impact on the project outcome





NOW
Full transcript