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Stage Gate Systems Exxon- PIP Product Innovation Process

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Presentation on theme: "Stage Gate Systems Exxon- PIP Product Innovation Process"— Presentation transcript:

1 Stage Gate Systems Exxon- PIP Product Innovation Process
HP- Phased Review Process Guiness- NaviGate others: 3M, Polaroid, Kodak,Rohm and Haas,ICI,Mobil,Dow Chemical, Asahi Chemical, P&G, SC JOhnson

2 Typical 2nd Generation Stage-Gate Process

3 Stages Set of parallel activities
undertaken by a cross-functional team gathers information for the next gate

4 Gates A go/kill decision point with a set of required deliverables
pre defined evaluation criteria defined outputs: go/kill/recycle

5 Stage 1: Discovery R&D lead user analysis strategic planning exercises
gaps and opportunities in the market disruptions

6 Gate 1: Idea screen- Gentle screen
handful of must-meet and should-meet criteria strategic alignment project feasibility opportunity size and attractiveness product advantage fit to resources and skills and policies Exxon’s PIP: Strategic fit Market attractiveness Technical feasibility Killer variables

7 Stage 2: Scoping Preliminary market assessment
Preliminary technical assessment <= 1 month 10-20 person-days of effort

8 Gate 2: Second Screen Reckitt &Colman now Reckitt-Benckiser:
Original set of must-meet and should-meet criteria new criteria: sales force customer reaction “killer variable” presence simple financial assessment- payback period Reckitt &Colman now Reckitt-Benckiser: “Does the initial evidence suggest that the concept can win in the marketplace?”

9 3rd Generation Stage-Gate Process

10 Stage 2: Building the Business Case or the critical homework stage
Market investigations and research studies Detailed technical analysis Detailed financial analysis Outcome: a business case for the project Product definition Project justification Detailed project plan

11 Gate 3: Go to development
Last point before heavy spending Process audit of Stage 2 Project evaluation on established criteria Financial emphasis Review and approval of Development plan Preliminary operations and marketing plan Designation of full team with authority

12 Stage 3: Development Lab tests, in-house tests, alpha tests
Deliverables: lab-tested product prototype In parallel: marketing and operations Deliverables: detailed test plans, launch plans Production/operations plans including facilities requirements Deliverables: Updated financial analysis; resolution of regulatory, legal and patent issues

13 Gate 4: Go to testing Review of development work and process
Match to original definition is checked Review financial data Approval of test or validation plans Review of detailed marketing and operations plans for executability

14 Stage 4: Testing and Validation
Validity of Product Production process Customer acceptance Project economics In-house product tests User or field product trials Trial, limited production or pilot production Pre-test market, test market or trial sell Revised business and financial analysis

15 Gate 5: Go to launch Final kill point Audit of process in stage 4
Review operations and marketing plans for implementation at the next stage Criteria: expected financial return and appropriateness of launch and start-up operations plans

16 Stage 5: Launch Implementation, fine tuning, success

17 Post-launch review 6-19 months from launch
Change status from new product to regular product Disband NP team Review project and product performance Revenues Costs Expenditures Profits Timing Learning

18 What the Stage Gate Process is not
Functional, phased review Rigid Bureaucratic Project management

19 3rd Generation Stage-Gate systems
Flexibility RCB’s triage: system change, fast-track, major Fuzzy gates Conditional go-ahead subject to new information Fluidity Overlapping activities Focus Portfolio thinking on focus Facilitation Key master,process manager, gate meister, process keeper Forever green- adaptive International Paper’s web based gates; RCB’s “suck-in” externally developed new ideas

20 The first stages

21 Summary of Stage 1 Actions

22 Gate 3 Deliverables

23 Stage Gates 1,2,3 Must-Meet Criteria

24 Stage Gate 3 Should-Meet Criteria

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