1ZM16 Management of
Product Development
Article’s Summary
,Lecture 1
The Stage-Gate® idea-to-launch process: Update, what’s new, and NexGen
systems. Cooper, R.G. (2008).
Key constructs
Stage-gate Conceptual and operational map for moving new product project from idea to
launch and beyond. Blueprint for managing NPD process to improve effectiveness
and efficiency.
Stages Innovation process visualized as a series of stages. Each composed of set
of required or recommended best-practice activities needed to progress the
project to the next gate.
- Each stage designed to reduce key project uncertainties and risks
- Each stage project costs increase, unknowns and uncertainties driven
down.
- Activities parallel by team of people from different functional areas.
- Each stage Cross-functional
Gates Go/kill decision point. Consists of:
- Deliverables
- Criteria
- Outputs
Value stream map Identify and document value streams: connection of all process steps with the
goal of maximizing customer value.
Key findings
Next-generation stage-gate built ins
Making the system more:
- Scalable Scaled to suit different types and risk levels of projects. Higher the risk, the
more one adheres to the full five-stage process.
, - Flexible Not a standardized process. Simultaneous execution overlap activities.
- Adaptable Adjusts to changing conditions and fluid unstable information. Spiral or
agile development is built in -> built-test-feedback-and revise iterations
Spiral development: Bridge between need for clear product definition
before development begins vs need to be flexible and adjust products
design to new information and fluid market conditions. Allows to incorporate
customer feedback into the design.
Lean, removing waste and inefficiency -> value stream
Building in better governance:
o Use of scorecard to make better go/kill decisions.
o Employing success criteria at gates.
o Self-evaluation as an input in each gate.
o Displays of in-process metrics at each gate.
o Integration with portfolio management. (less in-depth)
o Leaner and simpler gates.
Incorporating accountability and continuous improvement
- Performance metrics
- Team accountability for results
- Building in learning and improvement
Adapting the system to include open innovation
Closed innovation: inputs from internal and external sources.
Open innovation: Companies loop inside and outside across three aspects of innovation process: ideation,
development and commercialization.
Key take-aways
Errors and fail points
- Governance process:
o Gates with no teeth.
o Hollow decisions at gates.
o Who are the gatekeepers?
o Gatekeepers behaving badly.
- Misapplying cost-cutting models to innovation projects:
o Six Sigma
o Lean manufacturing
- Trying to do portfolio management without a stage-and-gate process.
- Too much bureaucracy in idea-to-launch process:
o Deliverables overkill.
o Demanding much non-value-added work.
- Too much reliance on software as a solution.
Product Development
Article’s Summary
,Lecture 1
The Stage-Gate® idea-to-launch process: Update, what’s new, and NexGen
systems. Cooper, R.G. (2008).
Key constructs
Stage-gate Conceptual and operational map for moving new product project from idea to
launch and beyond. Blueprint for managing NPD process to improve effectiveness
and efficiency.
Stages Innovation process visualized as a series of stages. Each composed of set
of required or recommended best-practice activities needed to progress the
project to the next gate.
- Each stage designed to reduce key project uncertainties and risks
- Each stage project costs increase, unknowns and uncertainties driven
down.
- Activities parallel by team of people from different functional areas.
- Each stage Cross-functional
Gates Go/kill decision point. Consists of:
- Deliverables
- Criteria
- Outputs
Value stream map Identify and document value streams: connection of all process steps with the
goal of maximizing customer value.
Key findings
Next-generation stage-gate built ins
Making the system more:
- Scalable Scaled to suit different types and risk levels of projects. Higher the risk, the
more one adheres to the full five-stage process.
, - Flexible Not a standardized process. Simultaneous execution overlap activities.
- Adaptable Adjusts to changing conditions and fluid unstable information. Spiral or
agile development is built in -> built-test-feedback-and revise iterations
Spiral development: Bridge between need for clear product definition
before development begins vs need to be flexible and adjust products
design to new information and fluid market conditions. Allows to incorporate
customer feedback into the design.
Lean, removing waste and inefficiency -> value stream
Building in better governance:
o Use of scorecard to make better go/kill decisions.
o Employing success criteria at gates.
o Self-evaluation as an input in each gate.
o Displays of in-process metrics at each gate.
o Integration with portfolio management. (less in-depth)
o Leaner and simpler gates.
Incorporating accountability and continuous improvement
- Performance metrics
- Team accountability for results
- Building in learning and improvement
Adapting the system to include open innovation
Closed innovation: inputs from internal and external sources.
Open innovation: Companies loop inside and outside across three aspects of innovation process: ideation,
development and commercialization.
Key take-aways
Errors and fail points
- Governance process:
o Gates with no teeth.
o Hollow decisions at gates.
o Who are the gatekeepers?
o Gatekeepers behaving badly.
- Misapplying cost-cutting models to innovation projects:
o Six Sigma
o Lean manufacturing
- Trying to do portfolio management without a stage-and-gate process.
- Too much bureaucracy in idea-to-launch process:
o Deliverables overkill.
o Demanding much non-value-added work.
- Too much reliance on software as a solution.
