Product innovation begins with an idea and ends
with the successful launch of a new product. The steps between
these points can be viewed as a dynamic process. Stage-Gate® divides
this process into a series of activities (stages)
and decision points (gates).
Stages are:
where the action occurs - the project team completes key activities
to advance the project to the next gate
cross-functional (there is no R&D or marketing stage)
and each activity is undertaken in parallel to accelerate speed
where risk is managed - vital information is gathered - technical,
market, financial, operations - to manage risk
incremental - each stage costs more than the preceding one
resulting in incremental commitments. As uncertainties decrease,
expenditures are allowed to rise and risk is managed
Gates are:
where the Go/Kill and prioritization decisions are made
where mediocre projects are culled out and resources are
allocated to the best projects
focused on three key issues: quality of execution; business
rationale; and the quality of the action plan
where scorecards and criteria are used to evaluate the project’s
potential for success
