Lessons Learned: an Entrepreneur Using Stage-Gate™ to Guide a Project
Aug 21, 2015
Lessons Learned: an Entrepreneur Using Stage-Gate™ to Guide a Project
Turning the black whole of innovation into a quality process
• Quality management
• What is and Why use Stage-Gate
• Invasive bighead and silver carp pesticide project as a case study
• What is gained by using Stage-Gate
My beliefs on Business
• Cooper’s Stage-Gate™ is a process allowing for quality management of investment/product development decision
• Porter’s Five Forces is a process for market research of a company, industry or market.
• Plan Do Check Act!
“In God we trust. All others bring data” W.
E. Deming
• What does the data mean?
• What actions are needed to meet my goal?
“Insanity: doing the same thing over and
over again and expecting different
results” Albert Einstein
Discovery Stage
Stage
2
Build
Business Case
Stage
4
Testing & Validation
Gate
3
Stage
5
Launch
Gate
4
Stage
3
Development
Gate
2
Post-Launch Review
Source: R. Cooper, Winning with New Products (2001)
Stage-Gate™ is a Process that guides an innovation project to a speedy conclusion
Interim Approval
Approve Project
Review of Development Results
Gate
1
Product Release
Gate
5
Scoping
Stage
1
4
Why Innovation Process is Important
ROI Focus on Solving a Problem
Choose the Right Problem
Develop Competitive Advantage
Minimize Expense Ensure
dealing with “Brutal Facts”
Keeps Project Focused
Speed to Market
The Scope: Porter’s 5 Forces
USGS
MJSTI Rotenone
Federal Government accepts that
Asian carp are here and stops
trying to control
FWS
State Conservation
Agencies
Prize too small & barriers to entry
too high for corporations
Specialty Chemicals
Commodity Chemicals
Process/Toll Mfg.
Market Competition, market size
~$5 MM
Indirect Competition
Suppliers
Potential New Entrants
Customers
1
3
2
4 5
The Business Plan If Asian carp establish in the Great Lakes, ~$7 billion water recreation industry is jeopardized
Problem: No safe pesticide, Federal government spent $260 million from 2008 to 2013, pesticide needed to control Asian carp population, one of several tactics to control Asian carp
Goal: To make money killing Asian carp, Size of prize: ~$5 million
Specifications: Effective & Selective; Environmentally Safe; Low Cost
The Competitive Advantage: Potential for Patent, some protection for new application pesticide filing
Stage-Gate™ Progress
Scope
• Understand market including competition, propose technical ideas
• Outline market potential in dollars and estimate profitability
Business Plan
• Detailed market report, including product specifications, understand risks, match capabilities to project requirements
• Development plan
Development
• Made prototypes, juvenile and adult bighead carp consumed
• Failed to prove toxicity to bighead carp
Testing and Validation
• Obtain EPA and State agency approval
• Scale up production
• Sales Plan approved
Sell
• Obtain orders
Project Capabilities Analysis
Capability Plan Actual Known Steps, Actual
Business Mgn; Mkt Research, Plan
MJS Completed, took and used Kauffman’s FastTrack coarse
Known 0
Specifications MJS Developed & followed Developed 0
Technical Concept MJS MJS, research Unknown 2
Industry Contacts Develop Obtained as needed, Networking Developed 0
Funding Indiegogo, grants
Consulting funded project, limited resources
Results, Contacts
2
Fish Testing University Harrison Fishery, USGS Known 1
Technical expertise University USGS, Harrison, Contacts Developing 1 to 2
Manufacturing Outsource, 2 NDAs
Equipment Mfg. to make prototypes, Mfg. interested, RM supported with samples
Known 0
Manufacturing Understanding
MJS knowledge
MJS knowledge, Equipment Mfg. Known 0 to 1
Legal Outsource Outsourced Known 0 to 1
Regulatory Outsource Networking, EPA, USGS EPA 1
What went well
Wrote and followed a plan
“Brutal Facts!”
Listen, Ask, and Learn, Learn, Learn!
Analyzed results and made changes, consistent with plan
What could be improved Filed Provisional
Patent
Lack of Funding
Limited Fish Technical Resources
Spent 3 to 4 months Consulting for funds
Limited Fish Toxicity Discussions
Reworked Project Analysis
Capability Plan Known Steps, Actual
Actions Steps, Rework
Business Mgn; Mkt Research, Plan
MJS Known 0 Update market 0
Specifications MJS Developed 0 0
Technical Concept MJS Unknown 2 Research fish physiology 1
Industry Contacts Develop Developed 0 Increased 0
Funding Indiegogo, grants Results, Contacts 2 Partnership 1
Fish Testing University Known 1 USGS agreement 0 to 1
Technical expertise University Developing 1 to 2 USGS, Partnership 1
Manufacturing Outsource, 2 NDAs Known 0 Contacts 0 to 1
Manufacturing Understanding
MJS knowledge Known 0 to 1 Experience, contacts 0 to 1
Legal Outsource Known 0 to 1 0 to 1
Regulatory Outsource EPA 1 Contacts 1
Discovery Stage
Stage
2
Build
Business Case
Stage
4
Testing & Validation
Gate
3
Stage
5
Launch
Gate
4
Stage
3
Development
Gate
2
Post-Launch Review
Source: R. Cooper, Winning with New Products (2001)
Stage-Gate™
Interim Approval
Approve Project
Review of Development Results
Gate
1
Product Release
Gate
5
Scoping
Stage
1
13
Rework or Kill
By Following the Stage-Gate™ Process
I had a Guide
Keep focus on goal & moving
project forward
Identified Key Issues and
forced their resolution
Minimized the Loss
Stage-Gate™ is Speed to Market!
Thank You for your support
• Harrison Fishery, (660) 423-5482: Curtis Harris and Brandon Handquist; if you need fish, please call Harrison
• USGS: Duane Chapman, Mark Gaikowski, Robin Calfee, Jon Amberg and Ed Little
• Especially my wife
MARKET RESEARCH PROJECT MANAGEMENT DISRUPTIVE SOLUTIONS
Maurice Sadowsky
MJSTI Corporation
Overland Park, KS
[email protected]; 913-239-9037, Cell: 302-559-2998