stage gate systems - tool for managing new products
DESCRIPTION
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STAGE-GATE SYSTEMS: A NEW
TOOL FOR MANAGING NEW
PRODUCTS
PRESENTED BY:
MANEESH GARGASHWIN GOYAL
PRASHANT GHOSHMUDIT DESAI
AKSHAY TEWARI
Brief Summary and background of paper
Only 1 in 4 projects on new product development is a success among innovation based projects
50 % of the resources spent on new product development went waste annually
There was no standard step by step process that could bring explain new product development which would become successful.
Process innovation/product innovation can be monitored and tracked.
Ability to get better at innovation process with efficiency and effectiveness is a winning strategy.
Splitting product development into smaller modules/stages reduces new product failures or innovation failures.
Review/verification and validation at every stage of product development is required at every gate.
Objective of the Research
The objective of this research was to find out the benefits of the stage gate model in the success rate of new product innovations and development
The benefits are• Shorter time to launch products• Fewer mistakes in the product development process• Less recycling and rework in the process• More successful development effort
Understanding the needs and wants of the customerAllocating enough resources to all stages of the product development not concentrating on a fewCost-Benefit analysis has to be performed repeatedly at every stage
Key Issues
Firms were doing a tech push instead of a market pull Internal resources were not used effectively Time to launch the product Risk of product failures Uncertainty in Return on investment (time and money wise) Competitive advantage Corporate image is to be maintained Safety of product not guaranteed (lack of gates) Obsolescence of technology/product
Research Methodology
Primary research Exploratory research
Companies visited GM 3M Nortel Communications A packaged Goods Firm An electrical & electronics firm
Study on 203 new product projects
STAGE GATE SYSTEM
Results/Conclusions
• Firms that adopted a formal new product process did better• Firms with the process in place for the longest time fared the
best
• However product innovation was a high risk project and would always be a high risk endeavor.
• The stage process is just a innovative tool to improvise the process by better design parameter rather than taking chances.