technology stage gate - stevens institute of technology · 3 technology stage gate...
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Technology Stage Gate
Peter A. Koen, Ph.D.School of Technology ManagementStevens Institute of Technology
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Outline
Technology Stage GateOutcomeWhat Technology Stage Gate Can and Can’tAccomplishPrinciples behind Technology Stage GateComparison with Traditional Stage Gate
What is it?
Critical Success Factors
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Technology Stage Gate Outcomes
Technology planning and review process highlightsbusiness, process and investment issues very early in theproject
Technology goals are well understood and aligned withbusiness strategy
Business leadership engaged and supportiveTechnology development projects linked to the businessplansTechnologies leveraged across platforms and products
Assist Company in becoming a world classtechnology developer
An effective technology development process withmanagement overview and scientific rigor which
creates and environment of fast failures.
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Technology Stage Gate Outcomes
Risks and outcomes are reevaluated stage-by-stage
Creates collaborative alignment between technical andbusiness communities
Reduces technology (and product) development cycletime
Assist company in becoming a world classtechnology developer
An effective technology development process withmanagement overview and scientific rigor which
creates an environment of fast failures.
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What Technology Stage Gate Can’t Do
New Breakthrough ProjectsTechnology Stage Gate is an enabler for
high risk technology projects
New Product DevelopmentStage
Commercialization
Front End ofInnovation
Traditional Stage Gate
Idea Selection Processfor Incremental Products
Platform Strategies LeveragingExisting Customer Value Chain
Highly Innovative and ProfitablePlatform Strategies Leveraging
Core Competencies/ Capabilities(Market Attack Teams)
Size of Bubbleis related to
Profit Potential
Technology Stage Gate
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Technology Stage Gate Principles
Early Senior Business and TechnologyManagement Involvement
Early Up-Front Planning
Voice of the Customer
Empowered Communicating Teams
Scientific Rigor and Peer Review
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Early Senior Management Involvement
KnowledgeAcquisition
ConceptInvestigation
TechnologyExperiments Protocept Technology
Transfer
Actual ManagementActivity in Old Paradigm
Activity Phases
Mea
sure
of
Att
enti
on o
r In
flu
ence
Low
High
Time
Ability to influenceOutcome
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Traditional Stage Gate
Repeatable ProcessLeverage from past experiences
Predictable proceduresCan estimate cycle time
Structure and discipline are criticalCreativity is less important
Project management skills arerequired
Product Development StageGates are “transparent”
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Technology Stage Gate
Difficult to capture and leverage pastexperiences for future efforts
Cycle time difficult to estimateRange of experimental outcomes is vast
Detailed overall project plan is impracticalGates are opaque
Do not know how many gatesCan’t schedule invention
Difficult to determine when technology isready for product development
Can be very subjectiveToo much structure can inhibit creativityProject leaders need ability to manageuncertainty while focusing on projectgoals
Technology Stage Gates are“opaque”
TRTR00
TRTR11
TRTRN-1N-1
TRTRNN
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Outline
Stage GateObjectiveWhat Technology Stage Gate Can and Can’tAccomplishPrinciples behind Stage GateComparison with Traditional Stage Gate
What is it?
Critical Success Factors
Review ProcessTechnology Review CommitteeCharterStructured MethodologyProcess OwnerDesign TeamCore Team
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Technology Stage Gate
Review Process
PAC Chair
Mkt
Technology Review Committee
Core TeamStructured Planning
Charter ProcessOwner
R&D Finan Manuf
0 1 2 N-1 N
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Technology Review Process
Pre-agreed reviews and dates at the end of each gate(Agreed to by TRC and team)
Each gate represents a significant and measurablemilestone
Number of stages and length between stages will vary
TR0TR1
TR2
TR TRN-1
TRN
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Technology Review Process
This stage defines the overall technologydevelopment plan including:
Overall technology strategy and approachProgram team structureResourcesDetailed plan included measurable deliverables to TR1Risk analysis with agreed "kill" points
Plan to be developed by Technology DevelopmentTeam
TR0 TR0TR1
TR2
TR TRN-1
TRN
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TR0 Business Plan
20Total
2Risk Assessment
1Financials
1Operational Plan
1Project Organization
1Technology Project Plan
4Technology Plan
1Market Entry Strategy
1Why this project will win?
2Competitor Analysis
2Market and Customer Definition
3Scope
1Executive Summary
Pages
An initial frameworkdeveloped by taking the“Best Practices” used inover 100 business plansdeveloped over a 8 year
period
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TR0 Business Plan
Technology Feasibility Point
A
B
C
DE
F
Technology Factor
Con
fiden
ce L
evel
Ris
k Fa
ctor
Probability of Event 1.00.0
0
10
Pote
ntia
l
Development 101
1
10
Technology
Regulatory
Marketing
Financial
Team/Organization
TechnologyConfidence Plot
TechnologicalEvaluation Plot
Overall RiskAssessment
Technological Score Card
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Technology Review Process
Revise technology development plan
Review outcomes from previous TR gate
Revise technology development plan
Detailed approach for next stage gate including riskassessment and "kill" points
TRi TR0TR1
TR2
TRTR
N-1
TRN
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Technology Review Process
Detailed transition plan should be developed
Final stage is focused on technology transfer
Transition team should be involved in the plan
TRN TR0TR1
TR2
TR TRN-1
TRN
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Technology Review Committee
Decision Making BodyResponsible for making a "go," "no-go" or "redirect" decision atStage GateIncludes the commitment of resources and people to the nextReview Gate
Consists of Division R&D, Marketing (i.e. of affectedtechnology), Scientific Peer(s) and permanent R&D members
Authority to fund and prioritize technology developmentprograms
Chairman
Div R&DDiv MktScientificPeers
TRC is different foreach project
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Charter Outline1. Initial scope and objectives of work
Fit with the business strategyFit with the product/platform strategy
2. Primary areas of technology improvementBriefly describe the technologies to be investigated /pursued / developed
3. Key Assumptions and RisksWhat are the key assumptions behind this development?What are the key risks associated with this project?
(technical, market, timing, other)4. Recommended Process
Normal (full) process, scaled down process, or other(specify)
5. Proposed ResourcesLead Scientist/EngineerPlanning/Strategy/Marketing representativeTechnical Service / Applications Support personRecommendation for Review Committee advisorsOthers specifically needed
6. Proposed Timing of the First Stage Review
Developed by SeniorExecutives and TRCcommittee before
Technology DevelopmentTeam Effort
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Structured Methodology
Development PlanDeveloped by core teamPrimary communication vehicle between team and TRC
Contains detailed project flow charts for the next stageAll risks, mitigating plans and key assumptions areidentifiedKey deliverables are highlighted“Kill” points are clearly identified
0 1 2 N-1 N
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Process Owner
“Owns” the Technology Stage Gate ProcessUnderstands all the details of the processAble to train and advise subsequent teamsFocuses on ProcessActively supported by senior managementFull time position with dotted line to Chairmanof TRC
Successful implementation, with the necessary rigor,cannot be accomplished without a Process Owner
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Design Team
ObjectiveTo guide and customize the Stage Gate Process
ResponsibilitiesOverall development processBe a supporter of the changeSupport and mentor project teams as they work ontheir projectDevelopment of a guideline document to be used bythe project teams as a basis for project planning andexecution
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Core Team
Responsible to plan and execute the programResponsible for managing budget and peopleOverall team performance and outcome should berelated to team/individual rewards
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Schedule
Advise andConsent on TSG
Technology Design TeamDevelops Methodology
Technology Development Team
TeamTraining
TeamTraining
TRCTraining
TR0 Review
TR0 PlanComplete
Begin TRi
“Typical” Roll Out Schedule
Schedule in months
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Outline
Stage GateObjectiveWhat Technology Stage Gate Can and Can’tAccomplishPrinciples behind Technology Stage GateComparison with Traditional Stage Gate
What is it?
Critical Success Factors
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Critical Success Factors
Leadership must lead - “walk the talk”Demand high standards for quality of executionMake timely and consistent go/kill decisionsEstablish measurable deliverablesCommit and ensure the necessary resourcesMentor and enable project teamsManage with clear and engaging directionAttend all Gate meetings
Create a “World Class” TechnologyDevelopment Infrastructure
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Critical Success Factors
Follow the processUse Stage Gate to manage all high risk technologyprojectsIntegrate and consistently apply documents
Empower TeamsShift focus from micro-management to multi-functiondevelopment teams
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Critical Success Factors
Technology Stage Gate is an enabler NOT thesolution
Excellent leadership, highly motivated teams, buildingcompetitive advantage, leveraging core competenciesand developing products which delight the customer areall needed
Develop a high quality processDesign team needs to develop high quality templatesand work plansFirst project should set a high quality standard forfuture projects
Make Implementation a Kraft/Nabisco OwnedProgram
Use past experiences and procedures as a starting point
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Conclusions
BenefitsEnsure allocation of resources to “right” projects
Technology planning and review processHighlights business, process and investment issues veryearly
Technology goals and risks are understood by all of thestakeholdersEarly involvement of business leaders from researchand divisionCreates an environment of scientific rigor combinedwith “fast” failures
Increases number of high risk/high profitable projects inthe portfolio