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