The concept of the Stage-Gate process is derived from the product innovation management. It involves specific design of the development process, product innovations, in which different stages of the process are distributed among decision-making points. The Stage-Gate model assumes six stages of innovation implementation, with only the best ideas getting through to the next stages. Ideas that have not gone further can be recycled and wait for a new process in other circumstances, be resold to the entity for which they are worth, or transferred to the "open innovation" activities (R.G.Cooper 2016).
Characteristics of the model
The Stage-Gate process is characterized by:
- big picture view of the conception to launch process that possible optimal novation management to realize rapid, remunerative and successful new product development.
- a roadmap that organizes the chaotic time, inception to launch new product development process into smaler, more manageable stages to manage risk.
- process rigor is right-sized to project context and risk at the first and at each subsequent Gate enabling real-time prcess routing to optimize new product development pipeline productivity.
Benefits of Using a Stage-Gate Model:
- success on the market, sale of a new product and profits from sales
- the success of making and implementing the project in the company (somehow and the speed of the project is at a high level)
- better somehow cooperation within the company, improving interpersonal relationships
- good communication between external stakeholders, including customers, partners and suppliers
Stages of the process
The Stage Gate process consists of several stages that are connected with each other by gates. Each stage is aimed at gathering specific information:
- Stage 0: discovery
- Stage 1: range determination
- Stage 2: business plan concept
- Stage 3: development
- Stage 4: testing and validation
- Stage 5: commissioning and implementation
Stage 0: Discovery
At this stage, you must specify the scope of the project that can be implemented in the company. Ideas can be generated using brainstorming. Ideas can be invented by employees and customers. The idea is first selected and then proposed. If the idea is not worth the effort, the project is rejected.
Stage 1: Range determination
This stage involves the evaluation of the product and the related market. The strengths and weaknesses of the product and possible competition risks should be identified. Based on the estimated risk, production will continue or not.
Stage 2: Business plan concept
Now that the product is not immune to competition, a business plan is being developed. This is the last stage of concept development and is important before starting product development. This stage is very labor intensive and includes stages that must be completed: - Definition and analysis of the product - Creating a business plan - Creating a project plan - Feasibility study
Stage 3: Development
At this stage, the plans from previous stages are implemented and simple tests are carried out. At this stage, the opinion about productions can be verified. Finally, a prototype of the product is created, which will be widely tested during the next stage.
Stage 4: Testing and validation
This stage includes product testing and validation. They also look at the production process and the way in which the product is accepted by customers and the market. At this stage, the product and the production process should be tested to correct errors. Check if it meets the expectations of customers.
Stage 5: Commissioning and implementation
The marketing strategy comes into play at this stage of the Stage Gate process. The product is ready to run. An estimate of the quantity to be sold is given. Rules on production, inventory and distribution should be laid down. The team responsible for sales is responsible above all for ensuring a smooth process (R.G. Cooper 2015).
More and more companies represent a new generation of idea-to-launch processes. In some cases, it's an evolution of Stage-Gate to a better, faster mode (R.G. Cooper 2015).
- Cooper R.G. (2016) Agile–Stage-Gate Hybrids, , "Research-Technology Management", 59:1, 21-29
- Cooper R.G. (2015) What’s Next?: After Stage‐Gate, "Stage‐Gate International", January – February 2014
- Grönlund J., Rönnberg Sjödin D., Frishammar J. (2010); Open Innovation and Stage-Gate Process- A Revised Model for New Product Development,"California Management Reviw", VOL. 52, NO. 3
Author: Maria Drzazga