carnegie mellon qatar ©2006 - 2011 robert t. monroe course 70-446 selecting an opportunity:...

Carnegie Mellon Qatar ©2006 - 2011 Robert T. Monroe Course 70-446

Selecting An Opportunity:Stage-Gate Processes,

Customer Scenarios, and POGs

Robert Monroe

Innovative Product Development

February 10, 2011


By The End Of Class Today, You Should:


The Good News: Lots of Ideas


The Bad News: Limited Resources

ResourcesAvailable forInnovativeNew ProductDevelopment


The Problem


Resource Allocation: The Stage-Gate NPD Process

• In the early stages of developing new market opportunities and bringing innovative services and products to market, one of the most critical tasks is appropriately backing and funding the most promising opportunities, while eliminating non-promising ideas as quickly and as cheaply as you can determine they are not promising, but no quicker.

• The Stage Gate process [CE09] provides a rigorous, structured way for organizations to do so


Overview Of The Stage-Gate Process

• Stages are steps in the New Product Development (NPD) process where a specific set of work activities are done to produce a specific set of deliverables

• Gates are decision points that come at the end of each stage.

Stage nStage n Stage n+1Stage n+1Gaten+1

Gaten+1

Gaten+2

Gaten+2


Gates: Go/No-Go Decision Points

DecisionCriteriaDecisionCriteria

DeliverablesFrom Previous

Stage

Decision,ResourcesAllocated,Outputs

Source: [CE09] page 10.


New Product Development (NPD) Stages

DiscoveryStage

DiscoveryStage

Gate1

Gate1

Stage 1:Scoping

Stage 1:Scoping

Gate2

Gate2

Stage 2:Biz Case

Stage 2:Biz Case

Stage 3:Development

Stage 3:Development

Gate2

Gate2

Gate4

Gate4

Stage 4:Test &

Validate

Stage 4:Test &

ValidateGate

5

Gate5

Stage 5:Launch

Stage 5:Launch

Source: [CE09] page 8.


Mapping Stage Gate to Cagan/Vogel Process

Source: [CV02] Chapter 5 and [CE09]

Launch* Realize Conceptualize UnderstandIdentify

DiscoveryStage

ScopingStage 1

Business CaseStage 2

DevelopmentStage 3

Stages 4 & 5


Managing Risk With Stage-Gate

Level of risk and uncertainty

Time(Stages)

Resourcesallocated


Exercise:

• Gate 1 is where we go from idea generation (discovery) to the scoping (starting to really understand the customer)

• What criteria should we use for exiting gate 1?

• Who should your gatekeepers be for this gate?


Question:

• Who should your gatekeepers be for later gates?

• How should you go about selecting the proper people to participate in the gate meetings?


Scenarios – Making Your POG Resonate

• POGs, on their own, can be very abstract and dull

• By illustrating your POG with scenarios, which describe a real person, in a real situation, dealing with the real problems or challenges you have identified, you can bring the idea you have to life for your audience, and convince them that this is an idea worth pursuing

• Scenarios are short (1-2 paragraphs) descriptions of a person or people in a specific situation.

• A scenario should illustrate who your target customer is, what their need is, why they have that need, how the task is currently accomplished, and when it happens.

Source: [CV02] pp 181-182


Scenario Example: Ron The Construction Contractor

“Ron is an independent contractor. He typically works alone or with a crew of one or two. When Ron arrives at the work site in the morning, he drops off his larger equipment as close to the work area as possible. Setting up a work area typically means carrying sawhorses and boards as well as large ladders and tools. Most of the equipment is heavy and many trips to a destination far from the truck can be time- and energy-intensive.

If Ron can work near his truck, he often uses the tailgate as a cutting or work surface, even for eating lunch. Ron’s truck has side-mounted toolboxes that he installed and both a ladder rack and a towing hitch that were installed professionally. This means that Ron has no free space within his truck bed and that his tools often have to be put on the ground during unloading, which is damaging to both the tools and Ron’s back.”

Source: [CV02] pp 181-182


Gate 1: Exiting Discovery Stage

• Deliverables– Statement describing the Product Opportunity Gap

– Scenario description of one or two paragraphs that illustrates and brings to life the who, what, why, how, and when for the identified POG

• Criteria:


Outputs Of Discovery Stage

Required:– Statement describing the Product Opportunity Gap

– Scenario description of one or two paragraphs that illustrates and brings to life the who, what, why, how, and when for the identified POG

Optional (but useful as resources for later stages):– Job statement(s) for the Job(s) To Be Done we are targeting

– Description of identified SET factors that lead to the conclusion this is a promising opportunity

– Job scoping worksheets and conclusions

– Nine boxes exercise output


References

[CE09] Robert G. Cooper and Scott Edgett, Successful Product Innovation, Product Development Institute, 2009, ISBN: 978-1-4392-4918-5.

[SSD09] David Silverstein, Philip Samuel, Neil DeCarlo, The Innovator’s Toolkit, John Wiley and Sons, 2009, ISBN: 978-0-470-34535-1.

carnegie mellon qatar ©2006 - 2011 robert t. monroe course 70-446 selecting an opportunity:...

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