stage gate method for structured innovation
TRANSCRIPT
-
8/17/2019 Stage Gate Method for Structured Innovation
1/25
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
-
8/17/2019 Stage Gate Method for Structured Innovation
2/25
© 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
-
8/17/2019 Stage Gate Method for Structured Innovation
3/25
© 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
-
8/17/2019 Stage Gate Method for Structured Innovation
4/25
© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
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
-
8/17/2019 Stage Gate Method for Structured Innovation
5/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
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
-
8/17/2019 Stage Gate Method for Structured Innovation
6/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
Introduction | Stage-GateStage-Gate In New Product Development
Source: Robert Cooper, J Prod Innov Manag 2008
-
8/17/2019 Stage Gate Method for Structured Innovation
7/25© 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
-
8/17/2019 Stage Gate Method for Structured Innovation
8/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
Paper Description | Overview of thoughtsBrief Contents
Myths about Stage Gate and its implementation
Challenges in Implementation of Stage Gate
Next Generation Stage Gate
-
8/17/2019 Stage Gate Method for Structured Innovation
9/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
Paper Description | Stage-GateMyths of Stage-Gate
Source: Robert Cooper, J Prod Innov Manag 2008
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
-
8/17/2019 Stage Gate Method for Structured Innovation
10/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
Paper Description | Stage-GateMyths of Stage-Gate
Source: Robert Cooper, J Prod Innov Manag 2008
Similar toProject
Management
Phase ReviewProcess
Rigid Lock StepProcess
Linear System
Project controlMechanism
Dated,StagnantSystem
BureaucraticSystem
Back End/Product Delivery
Process
Data Entry
Scheme
MythsMyths
-
8/17/2019 Stage Gate Method for Structured Innovation
11/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
Paper Description | Stage-GateChallenges in implementation of Stage Gate
Source: Robert Cooper, J Prod Innov Manag 2008
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)
-
8/17/2019 Stage Gate Method for Structured Innovation
12/25© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
Paper Description | Stage-GateNext Generation Stage Gate
Source: Robert Cooper, J Prod Innov Manag 2008
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)
-
8/17/2019 Stage Gate Method for Structured Innovation
13/25
© 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
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
14/25
© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
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.
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
15/25
© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
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)
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
16/25
© 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
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
17/25
© Group 1.1, Innovation Management
TIME Research Area | Technology and Innovation Management Group (TIM)
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).
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
18/25
© Group 1.1, Innovation Management
| gy g p ( )
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.
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
19/25
© Group 1.1, Innovation Management
| gy g p ( )
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.
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
20/25
© Group 1.1, Innovation Management
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.
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
21/25
© Group 1.1, Innovation Management
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
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
22/25
© Group 1.1, Innovation Management
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
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
23/25
© Group 1.1, Innovation Management
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.
Source: Robert Cooper, J Prod Innov Manag 2008
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
24/25
© Group 1.1, Innovation Management
Group 1.1, Innovation Management | [email protected]
QUESTIONS AND DISCUSSIONThank you for your attention
Source: Marketoonist.com
FurtherDiscussions…....
TIME Research Area | Technology and Innovation Management Group (TIM)
-
8/17/2019 Stage Gate Method for Structured Innovation
25/25
© Group 1.1, Innovation Management
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