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Stage Gate - Lecture 11 Stage Gate – Lecture 1 Technology Development © 2009 ~ Mark Polczynski.

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Presentation on theme: "Stage Gate - Lecture 11 Stage Gate – Lecture 1 Technology Development © 2009 ~ Mark Polczynski."— Presentation transcript:

1 Stage Gate - Lecture 11 Stage Gate – Lecture 1 Technology Development © 2009 ~ Mark Polczynski

2 Stage Gate - Lecture 12 Strategic Technology Planning Scenario Planning Voice of the Customer Intellectual Property Generation Ideation Technology Roadmapping Strategic Technology Planning Scenario Planning Voice of the Customer Intellectual Property Generation Ideation Technology Roadmapping Strategic Technology Development Stage Gate Development Stage Gate Review Strategic Technology Development Stage Gate Development Stage Gate Review This Course: Strategic Technology Management

3 Stage Gate - Lecture 13 Scope of This Lecture Set: We focus on technology development, But the same basic principles apply to product development. This is about technology development and project review. It is about a system where project review is an integral part of technology development.

4 Stage Gate - Lecture 14 Integrating the development and review process Often, project execution and project review are two separate processes. It is desirable to integrate these two processes, because you get: - Better project results, - Better project review decisions, - Faster decisions – projects move faster, - Happier people: - Everyone knows the rules of the game beforehand, - Everyone follows the rules all the time, - Everyones expectations are kept realistic.

5 Stage Gate - Lecture 15 Stage Gate Process: 1.What problem are we trying to solve? 2.Stage gate development process. 3.Stage gate review process. 4.Review process cultural issues.

6 Stage Gate - Lecture 16 What Problem We Are Trying To Solve? Example: Eaton Corporation - ~ 10,000,000,000 ~ $10 billion annual sales, Goal: 10% increase in sales per year, Driven by stock market expectations, And stock market is main customer in capitalistic system. That equates to $1B in new products per year – every year! (compounded!)

7 Stage Gate - Lecture 17 Whats The Problem We Are Trying To Solve? Need new products that can move the needle. Hard to get to $1B by adding $1M at a time. You need 1,000 new products! Significant growth in many small increments is difficult to manage. Many low-impact products are difficult to support. Solution: Fewer high-impact projects.

8 Stage Gate - Lecture 18 What about small businesses? It doesnt matter if you are one of 10,000 engineers trying to add $1B in sales for Eaton Corporation. Or Joe of Joes Garage Shop trying to add $1,000 in sales. Trying to grow by $1,000 in $10 increments is hard to manage and hard to support when you are done.

9 Stage Gate - Lecture 19 Whats the MAIN Problem We Are Trying To Solve? Many Small Projects In Many Low-Impact Products Out New Product Pipeline Before: Difficult to manage many small projects. After: Difficult to support many small products.

10 Stage Gate - Lecture 110 Whats do we want to have? New Product Pipeline Many Small Projects In Few High-Impact Products Out Question: How do we figure out which projects to keep?

11 Stage Gate - Lecture Planning 2. Preparation 3. Ideation Event 4. Post-Processing Stage Gate Process Project Proposals Need to keep only the best Large number of good ideas Ideation Process:

12 Stage Gate - Lecture 112 Total NUMBER of Projects Overall Goal: Weed out projects that have low impact. Average IMPACT Per Project Early Project Life Late Problem: We dont know the winners at the start of their life. Goal: Survival of the best.

13 Stage Gate - Lecture 113 We must kill many of these projects… …but how do we discover which are the best? Many Small Projects In Few High-Impact Products Out

14 Stage Gate - Lecture 114 Total NUMBER of Projects Overall Goal: Maximize Bang-For-The-Buck. Averagee COST Per Project Early Project Life Late Kill losers before you spend lots of money on them Feed the winners well

15 Stage Gate - Lecture 115 Possibly the biggest cause for failure of good projects: Under-funding Lack of adequate resources. Inability to ruthlessly focus on only the best opportunities. Inability to identify best opportunities early in life. Stage Gate Development Process Stage Gate Review Process

16 Stage Gate - Lecture 116 Stage Gate Process: 1.What problem are we trying to solve? 2.Stage gate development process. 3.Stage gate review process. 4.Review process cultural issues.

17 Stage Gate - Lecture 117 Product Development Stage Gate Process

18 Stage Gate - Lecture 118 Technology Development Stage Gate Process Balance Opportunity (Why?) and Technology (What?) Balance Opportunity (Why?) and Technology (What?)

19 Stage Gate - Lecture 119 Note: This first gate could be part of ideation process

20 Stage Gate - Lecture Planning 2. Preparation 3. Ideation Event 4. Post-Processing Stage Gate Process Project Proposals Stage Gate Initial Screen Ideation Process:

21 Stage Gate - Lecture 121 Technology Development Stage Gate Process To Stage Gate Product Development Begin with the end in mind: What do we need to support stage gate product development?

22 Stage Gate - Lecture 122 What do we need to support stage gate product development? By the end of Stage Gate technology development, we will be able to answer Yes or No to these questions: 1. Does our technology actually work under real world conditions? 2. Can products based on this technology actually be designed and manufactured at an acceptable cost? 3. Can the technology provide a unique competitive advantage? Begin with the end in mind...

23 Stage Gate - Lecture 123 Technology Development Stage Gate Process End game : Technology works in field? Designable - manufacturable - profitable? Unique? Moving to the basics: Stage Inputs and Goals Moving to the basics: Stage Inputs and Goals Moving to the basics: Stage Inputs and Goals

24 Stage Gate - Lecture 124 A: Problem Statement What problem are we trying to solve? How would this provide value for the customer? A: Identification What technologies might solve the problem? (long list) Which technologies will we investigate in Stage B? (short list) Is there a chance to create Intellectual Property? Questions to answer at the end of Stage A

25 Stage Gate - Lecture 125 B: Functional Requirements What is the specific application? What functions does the customer need? B: Feasibility Which technology will we use? (select one) Does technology work in the lab? What is our strategy to create IP? Questions to answer at the end of Stage B

26 Stage Gate - Lecture 126 Technology Development Stage Gate Process C: Physical Requirements Under what real world conditions must the functions be provided? C: Demonstration Does technology work in real world conditions ? Can we make/sell a product? (tech transfer) What is our IP? Questions to answer at the end of Stage C

27 Stage Gate - Lecture 127 Stage A Technology Development Work What technologies might solve the problem? (Make long list) Ideation sessions and literature search, including patents, to: Expand understanding of the Problem Statement. Reveal prior art. Identify possible technologies. Which technologies should we investigate? (Make short list) Analyze technical feasibility - why might these solutions work?. Assess technical risk - why might these solutions not work? Is there an opportunity to create Intellectual Property? Ideation sessions - to identify novel potential solutions. Document concepts - to establish prior art for all novel solutions. Note: Stage A does not include experimental work.

28 Stage Gate - Lecture 128 Stage B Technology Development Work Which particular technology will we use? (select one) Analyze technical feasibility - why should the selected solution work? Assess technical risk - why might this solution not work? Assess technology transfer issues - Why might it be difficult to design products? Why might it be difficult to manufacture products? What might jeopardize cost targets? Can we meet the functional requirements? (lab conditions) Construct lab models - can we make it work in the lab? Perform lab tests - how does it perform in the lab? Establish proof of concept. What is our strategy to create Intellectual Property? Assess novelty - do we have a new solution? Document inventions - describe our solution (invention disclosures). Initiate IP strategy - what is the opportunity to create a proprietary position?

29 Stage Gate - Lecture 129 Stage C Technology Development Work Can we meet the physical requirements? (field conditions) Demonstrate field operability - does it work under field conditions? Test under field conditions - how will it function in the field? Can the division make a product? (tech transfer) Assess technology risk - what problems might occur in the field? Assess technology transfer issues - What are all the things needed to design products? What are all the things needed to manufacture products? What are all the things that drive cost? What is our Intellectual Property? Describe claims - what, exactly, have we invented? Document IP - teach others how our technology works. Complete IP strategy - who will do what by when to create proprietary position?

30 Stage Gate - Lecture 130 What technologies might solve problem? - Ideation sessions and literature search - Expand understanding of problem. - Identify possible technologies. Which technologies should we investigate? - Analyze technical feasibility - Assess technical risk (No experimental work) Is there a chance to create IP? - Ideation sessions to ID new solutions - Scan for prior art - Document concepts - establish prior art Comparison of Technology Development Work (Need new Stage A projects?) Can we actually make a product? - Assess technical risk - Assess technology transfer - Who will design? - Who will manufacture? Will it work in field conditions? - Demonstrate field operability - Test under field conditions What is our IP? - Describe claims - what is new? - Document IP - how does it work? - Complete IP strategy Stage AStage BStage C (Need new Stage A projects?) Which technology will we use? - Analyze technical feasibility - Assess technical risk - Assess technology transfer - Potential design issues? - Potential manufacturing issues? Does technology work in lab? - Construct lab models - Perform lab tests What is our plan to create IP? - Assess novelty - is it new? - Document inventions - what is it? - Initiate IP strategy Ideation Analysis Experiments IP

31 Stage Gate - Lecture 131 Comparison of Technology Development Work Can we actually make a product? - Assess technical risk - Assess technology transfer - Who will design? - Who will manufacture? - Technology roadmapping Will it work in the field? - Demonstrate field operability - Test under field conditions What is our IP? - Describe claims - what is new? - Document IP - how does it work? - Execute IP strategy Stage AStage BStage C Which technology will we use? - Analyze technical feasibility - Assess technical risk - Assess technology transfer - Potential design issues? - Potential manufacturing issues? Does technology work in lab? - Construct lab models - Perform lab tests What is our plan to create IP? - Assess novelty - is it new? - Document inventions - what is it? - Plan IP strategy What technologies might solve problem? - Ideation sessions and literature search - Expand understanding of problem. - Identify possible technologies. Which technologies should we investigate? - Analyze technical feasibility - Assess technical risk (No experimental work) Is there a chance to create IP? - Ideation sessions to ID new solutions - Document concepts - establish prior art Ideation Analysis Testing IP

32 Stage Gate - Lecture 132 Build Patent As We Execute Stages Whats the problem? What have others done? Why is this inadequate? Field of Use Prior Art Description of Invention Claims What is our solution? Why is it better? What do we claim exclusive rights to? A Stage B C Patent SectionPurpose

33 Stage Gate - Lecture 133 Specific Stage Gate IP Elements These three IP-related elements are addressed at Stage Gate reviews: 1. Problem/Solution Statement: What problem are we trying to solve? How will we solve it? 2. IP/Literature Scan: Who has done what to solve this problem? 3. IP Strategy: How will we protect our IP? ABC Required Not Required Required

34 Stage Gate - Lecture 134 What do we need to support stage gate product development? By the end of Stage Gate technology development, we will be able to answer Yes or No to these questions: 1. Does our technology actually work under real world conditions? 2. Can products based on this technology actually be designed and manufactured at an acceptable cost? 3. Can the technology provide a unique competitive advantage? Begin with the end in mind...


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