Transcript
New Product Process
Business Strategy and New Product
Strategy
STAGE-GATE MODEL
Portfolio Management & Stage-Gate Model
Stage
Gate
Stage
Gate
Stage
Gate
Portfolio Review:
This meeting• identifies strategic imperatives• checks project priorities• checks for portfolio balance• makes adjustments to the gating model
List of projects: Active and On-HoldTotal Project Scores from Gates
Strategic Imperatives(Must Do Now)Prioritization Adjustments
Gate AdjustmentsReview
Product Delivery Process
1
PRELIMINARYINVESTIGATION
STAGE
2
SECONDSCREEN
(Feasibility)
GATE2
DETAILEDINVESTIGATION
(Build Business Case)
STAGE
3
DECISION ON BUSINESS
CASE(Money Gate)
GATE3
DEVELOPMENT
STAGE
4
POST-DEVREVIEW
GATE
4
TESTING &VALIDATION
STAGE
5
PRE-LAUNCH BUSINESS ANALYSIS
GATE5
FULL PRODUCTION& LAUNCH
STAGEPOST IMPLEMENTATION
REVIEW
1
INITIALSCREEN
GATE
Goals
#1 Quality of Execution
focus on completeness: key activities central to success are carried out
focus on quality: execution of activities is proficient
focus on the important: devote attention & resources to pivotal and potentially weak steps (up-front and market-oriented activities)
Goals
#2 Sharper Focus, Project Prioritization
focus on funnels, not tunnels: strong gates weed out weak projects
focus on using resources efficiently: resources are directed toward the truly meritorious projects
Goals
#3 A Strong Market OrientationKey marketing activities:
Preliminary market assessment Market research to determine user needs and
wants Competitive analysis Value-in-use analysis Concept testing Customer reaction & feedback User tests & field trials Test market or trial sell Market Launch based on marketing plan
Goals
#4 Fact-Based Product Definition
up-front homework: defines the product and builds the business case for Development
fully defined products: lead to strong first steps into becoming full-fledged development projects
strategic product platforms: creates comprehensive product links to insure long-term idea pipelines
Goals
#5 Fast-Paced Parallel Processing
relay race approach ends: the series approach moves to the rugby match style of concurrently occurring activities
benefits of team work: • more work gets done in an elapsed time period• less chance of an activity being overlooked• activities are designed to feed each other• process becomes cross-functional and
multidisciplinary
Goals
#6 True Cross-Functional Team Approach
Key ingredients: Committed team players Team leader accountable for the project Leader w/formal authority Fluid team structure, w/new members added or
dropped as work requirements demand-some may not be involved in all
Small, core group of responsible and accountable team players from beginning to end
Goals
#7 Products with Competitive Advantage
Defined as: Differentiated products Unique benefits Superior value for the customer
Product superiority should be built in at every opportunity, questioned at every Gate, and a key deliverable for Go/Kill reviews
Goals
#8 A Fast-Paced and Flexible Process
elimination of time wasters: work that adds no value to the new product process only slows it down
different projects have different needs: the risks and nature of different projects should be considered - some will move faster than others
Definitions
Stage consists of a set of parallel activities by people
from different functional groups designed to gather information needed to advance
project to next gate each is cross-functional and owned by no single
functional group designed to help manage risk by driving
uncertainties down at each successive stage in general, each stage costs more than the
preceding one due to successive commitment to launch
Gate have a set of required “deliverables” the project
leader must present to the gate have a set of “criteria or hurdles” that each project
is judged on have a decision or “output” - Go/Kill/Hold/Recycle
DELIVERABLESCRITERIA
OUTPUTS
Definitions
Definitions
Gatekeepers management team of decision makers and
resource owners responsible for facilitating the rapid commercialization of selected projects
TI - Managers; Newspaper - Directors after Gate 2 or 3 forward
Deliverables a prescribed list of items - results of completed
actions - the Project leader must present to the gate based on a standard menu for each gate & are
decided at the output of the previous gate
Definitions
Criteria/Hurdles a predetermined set of hurdles or questions that
the project is judged on to make Go/Kill and prioritization decisions
can include a list of must-meet or knockout questions to weed out misfit projects quickly
e.g., Does the project fit the corporate strategy? Is there consumer appeal - that is, clear consumer need and expectation of consumer benefit? Is manufacturing or procurement feasible?
Definitions
Outputs a decision (Go/Kill/Hold/Recycle) an approved action plan for the next stage a list of deliverables date for the next gate
Action plan estimate of people required estimated money and person-days budget time schedule
Idea Generation
Keys to success focal point for new ideas: assign the responsibility
of generating and handling ideas to a single person identify the sources: where do good ideas come
from - make a list of possible sources and follow up
grease the path: create events or opportunities for idea generation - kits, contests, conversations
capture & handling system: allow for easy submission points and forms, with a repository for ideas not accepted
Idea Capture & Handling
IDEAS
FOCAL PERSON
PERIODIC REVIEW & UP-
DATE
1
INITIALSCREEN
GATE
FEEDBACK TO SUBMITTER
1
STAGE
IDEA VAULT OR BANK
- IDEAS ON HOLD- “DEAD” IDEAS
OTHERS IN COMPANY
Idea Generation
Idea Capture & Handling
Idea Generation
SUBMISSION DATABASE(Excel Spreadsheet online)
- NEW IDEAS
www.tribuneinteractive.net/ideaorama
Gate 1Initial Screen
Characteristics
project is born: first decision to commit resources to the project
“gentle screen”: project is subjected to key must-meet and should-meet criteria
financials: financial criteria are typically not part of this first screen
checklists & scoring: Yes/No criteria for the must-meet, and a weighted rating scale for should-meet criteria
1
PRELIMINARYINVESTIGATION
STAGE1
INITIALSCREEN
GATE
Gate 1Initial Screen
Criteria/Hurdles
A single “NO” kills the project:• Strategic fit - does it fit w/in a market or functionality area
that’s one of strategic focus?• Market attractiveness - are the market size, growth, and
opportunities attractive?• Technical feasibility - is there the likelihood that the
product can be made & produced?• Killer variables - do no known killer variables exist (e.g.,
legislative action)
1
PRELIMINARYINVESTIGATION
STAGE1
INITIALSCREEN
GATE
Stage 1Preliminary Investigation
Objective - Determine the project’s technical and marketplace merits
Activities (primarily secondary research)• Preliminary market assessment - scoping of the marketplace to
assess the existence of a market, probable size, and market acceptance
• Preliminary technical assessment - appraisal to propose a solution, a probable route, and assess costs, time and risk
• Preliminary business assessment - quick financial assessment based on estimates of sales, costs, and investment required
(payback calculation)
1
PRELIMINARYINVESTIGATION
STAGE1
INITIALSCREEN
GATE
2
SECONDSCREEN
GATE
Gate 2 “Feasibility”
Characteristics
repeat of Gate 1: project is reevaluated in light of the “deliverables” from Stage 1
hurdles using Hoeschst’s scoring model: the addition of more complex metrics can help evaluate projects in Gates 2 & 3
financial return assessed: this is quick and simple financial calculation meant only to give a general understanding of payback period, costs, etc.
2
DETAILEDINVESTIGATION
STAGE
1
PRELIMINARYINVESTIGATION
STAGE2
SECONDSCREEN
GATE
Criteria/Hurdles Strategy & Priorities
• Does the project fit the corporate strategy? (M)• Does the project fit the category strategy? (M)• Does the project fit the operating unit strategy? (M)
The Consumer• Is there consumer appeal (that is, clear consumer need and
expectation of consumer benefit)? (S)• Is the market/category of an attractive size and with growth potential?
(M)• Does the concept have competitive advantage? (M)• Is there a clear and viable marketing proposition? (S)
2
DETAILEDINVESTIGATION
STAGE
1
PRELIMINARYINVESTIGATION
STAGE2
SECONDSCREEN
GATE
Gate 2 “Feasibility”
Criteria/Hurdles (cont’d)
The Sale• Are there existing company sales channels? (M)• Does the product have advertiser appeal and fit? (S)
Technical• Is development or procurement feasible? (S)
Editorial• Are there any serious issues - legal? (M)• Issues - ethics? (M)
2
DETAILEDINVESTIGATION
STAGE
1
PRELIMINARYINVESTIGATION
STAGE2
SECONDSCREEN
GATE
Gate 2 “Feasibility”
Gate 2“Feasibility”
Criteria/Hurdles (cont’d) Financial
• Does this project have a PMA/DMA/national potential? (S)• Are financial projections in line with financial criteria? (S)
Other• Does the product have multi-market expansion potential? (S)
M= must-meetS = should-meet (Hoescht scale)
2
DETAILEDINVESTIGATION
STAGE
1
PRELIMINARYINVESTIGATION
STAGE2
SECONDSCREEN
GATE
Stage 2 Detailed Investigation
Objective - Build the business case Activities
• User needs-and-wants studies help develop a new product definition
• Value-in-use studies determine what economic value the product will bring to the advertiser/customer (customer use system, current solution, cost drivers, etc.)
• Competitive analysis that includes direct and indirect competitors: their products, strengths & weaknesses, business performance, etc.
• Concept testing in prototype form• Detailed technical assessment• Operations appraisal• Financial analysis
2
DETAILEDINVESTIGATION
STAGE
2
SECONDSCREEN
GATE3
DECISION ON BUSINESS CASE
Stage 2 Detailed Investigation
Deliverables - Business Case should answer: Product definition - what is the product, who will
use it and who will it be sold to?• Specification of the target market• Description of the product concept and benefits• Positioning strategy including price point• Product features, attributes, requirements, and high-level
specs (“must have” and “would like”) Project justification - why invest in this project?
• Strategic rationale, financial analysis, and business risk assessment
Project plan - how and how long?
2
DETAILEDINVESTIGATION
STAGE
2
SECONDSCREEN
GATE3
DECISION ON BUSINESS CASE
Stage 2 Detailed Investigation
2
DETAILEDINVESTIGATION
STAGE
2
SECONDSCREEN
GATE3
DECISION ON BUSINESS CASE
Sample Deliverables to Gate 3 Strategic fit confirmed Detailed market assessment Detailed operations/technical assessment Resource constraints Detailed financial assessment Detailed legal and ethical issues assessment Potential killer variables addressed Critical success factors are understood and feasible to achieve Recommendation to proceed, hold or kill Detailed biz & project plans High-level plan for remaining stages
A complete Deliverables List for each Gate can be found at: www.tribuneinteractive.net/stagegate Choose: DeliverablesList.doc
Gate 3“Go-to-Development”
Characteristics
money gate: final gate prior to the Development stage - the last point at which the project can be killed before entering heavy spending
product definition sign-off: what the product is to become and how it fits into the product portfolio are finalized
gatekeepers: top-level management
2
DETAILEDINVESTIGATION
STAGE
3
DECISION ON BUSINESS CASE
3
DEVELOPMENT
STAGE
Gate 3“Go-to-Development”
Criteria/Hurdles Similar to Gate 2, however, are more rigorously applied, using
more quantitative methods if necessary in addition to “must-meet” and “should-meet” standards outlined in Gate 2
The list of hurdles for this gate should be determined by the business unit based on a criteria that allows the gatekeepers to make an informed allocation of funds to Stage 3 (Development)
2
DETAILEDINVESTIGATION
STAGE
3
DECISION ON BUSINESS CASE
3
DEVELOPMENT
STAGE
Stage 3Development
Characteristics Deliverable is a “lab-tested” product, w/full
production & marketing plans being developed here
Development plan includes• chronological list of activities, actions, and tasks
(project management)• a timeline or schedule showing beginning & end
points, and milestones• resources required for each task and assigned
responsibility
3
DECISION ON BUSINESS CASE
3
DEVELOPMENT
STAGE
4
POST DEVELOPMENT
REVIEW
Gate 4Post Development Review
Characteristics A check on the progress and continued
attractiveness of the product and project Question switches from “Should we invest in the
project?” to “How well is the project unfolding - is it on track?”
Go/Kill criteria/hurdles in both Gates 4 & 5 should reflect this shift
Test or validation plans and capital expenditures should be approved here
Marketing and operations plans are reviewed for future execution
3
DEVELOPMENT
STAGE
4
POST DEVELOPMENT
REVIEW
4
TESTING & VALIDATION
STAGE
Stage 4Testing and Validation
Characteristics Tests and validates the entire commercial viability
of the project: the product itself, the production process, customer acceptance, and the economics
• in-house prototype testing• user tests or field trials• limited pilot production• financial revisions• mini-launch
4
POST DEVELOPMENT
REVIEW
4
TESTING & VALIDATION
STAGE
5
PRE-COMMERCIALIZAT
ION BUSINESS ANALYSIS
Gate 5Pre-launch Business Analysis
Characteristics Scrutinizes the quality of the activities at the
testing and validation stage and their results Criteria/hurdles tend to focus on expected financial
returns and appropriateness of launch and operations start-up plans
Operations and marketing plans reviewed and approved
Life Cycle plan anticipated
4
POST DEVELOPMENTREVIEW
STAGE
5
PRE-COMMERCIALIZATION BUSINESS ANALYSIS
5
FULL PRODUCTION& LAUNCH
STAGE
Stage 5Full Production & Market LaunchCharacteristics
Implementation of both the marketing launch plan and production or operations plans
Post-Launch monitoring plan kicks in with performance on key metrics being tracked
Elements of the long-term Life Cycle Plan begin to be implemented
(e.g., improvements and variations)
5
PRE-COMMERCIALIZATION BUSINESS ANALYSIS
5
Production &Market Launch
STAGE
POST IMPLEMENTATION
REVIEW
Post Implementation Review
Characteristics After about 6 to 18 months the product project must
be terminated - product becomes part of the company’s portfolio
Product’s performance is tracked, analyzed, and assessed - in terms of costs, revenue against projections, profits, timing against other products, etc.
Project team and the leader remain accountable for the success of the project through this post-Launch period
5
TESTING & VALIDATION
STAGE
POST IMPLEMENTATION
REVIEW
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