Product Development Process
Typical Problems • Product development processes often lack formal methods for consideration, resourcing, documenting and management – Lack of a formalized process limits perspective of where a product stands in its development cycle • Resource allocation may not reflect reality of where product is relative to development cycle • Product development and delivery schedule is difficult to validate without defined acceptance criteria
Solution • Implement a gated approach to product development – Allows for a formal stage by stage review of product as it goes through an identified product lifecycle – Identifies decision makers and acceptance criteria necessary for advancement through product development funnel – Minimizes impact to schedule while focusing cross functional team on primary objective
• Obtain organizational consensus in implementing process
Gate/Stage Business Generation Model
Gate 1
Product Concept
No-Go
Stage 1
No-Go
Stage 2
Gate 2
Preliminary Investigation
Post-Planning Review
Gate 4
Business Case Decision
Second Screening
Initial Screening
Detailed Investigation
No-Go
Prototype Testing & Validation
Gate 5
No-Go
No-Go
Stage 3
Market Assessment & Business Plan
Cash Flow Generation
Pre-Commercialization Business Analysis
Stage 4
Gate 3
Stage 5
Secure Funding & Launch Business
* As defined in “Product Leadership” by Robert Cooper
Gate/Stage Business Generation: An Idea Funnel Product Concept
Gate 1
No-Go
Business Case Decision
Second Screening
Initial Screening
Stage 1 Preliminary Investigation
No-Go
Stage 3
Gate 3
Detailed Investigation
No-Go
Post-Planning Review Gate 4
Stage 2
Gate 2
No-Go
Market Assessment & Business Plan
Pre-Commercialization Business Analysis Stage 4
Gate 5
Prototype Testing & Validation
No-Go
Cash Flow Generation
Stage 5
Secure Funding & Launch Business
Gate/Stage Business Generation: An Idea Funnel Product Concept
Gate 1
No-Go
Business Case Decision
Second Screening
Initial Screening
Stage 1 Preliminary Investigation
No-Go
Stage 3
Gate 3
Detailed Investigation
No-Go
Post-Planning Review Gate 4
Stage 2
Gate 2
No-Go
Market Assessment & Business Plan
Pre-Commercialization Business Analysis Stage 4
Gate 5
Prototype Testing & Validation
No-Go
Cash Flow Generation
Stage 5
Secure Funding & Launch Business
Gates • Project review and decision meetings – Go/Kill decision points in new product process • Projects are evaluated by management • Resources are identified and allocated • Poorly defined or validated projects are killed
Stage 1 • Preliminary Investigation or Concept Phase – A quick investigation and scoping of any number of potential projects. Based largely on “desk research”. – Continual process for feeding product and project development funnel
Stage 2 • Detailed Investigation (Business Case) – a more detailed investigation where market analysis, product definition, project justification, and project plan are proposed
Stage 3 • Development Stage – actual design and development of product take place, including internal verification and testing of products features and functionality – Complete production and marketing plans are developed in this stage – Defines and develops the various individual components that make up the final product – Hardware, Software, Interface, Packaging, etc.
Stage 4 • Testing and Validation – validate all commercial facets of the product and project – Includes tests and trials in the marketplace, lab and plant.
Stage 5 • Full Production and Market Launch – full commercialization stage – Marketing, production/operations, distribution, Quality Assurance, and post-launch monitoring and sales plans are executed
Stage 6 • Life Cycle Management / Post Implementation Review – Validates products market success against business plan expectations – Identifies threats to products continued production and sale – Considers ongoing improvements