A “Next Level Evolution” model for Operational Excellence to integrate with Business Transformation under the broader concept of Enterprise Excellence was discussed in BPMinstitute.org article in May 20171.
As Part of a Business Transformation and Enterprise Excellence strategy, how can the business be challenged to innovate and improve products?
A Robust New Product Introduction (NPI) Process should be a core competency at all companies.
Let’s take a look at the methodology and set of tools/techniques of a Stage Gate Process.2
The concept of a Stage Gate Process was described by Robert Cooper in the early 1980’s as a framework for the NPI process3. In its simplest form, it is a series of distinct Stages separated by “Go/No Go” decision points called Gates. Gate Reviews are typically cross-function business reviews designed with standardized criteria to move the process to the next Stage or to make a business decision either to (1) suspend the product development process until risks/gaps are resolved or (2) “kill” the new product program.
“In practice, the stages shown may include numerous substages and gates depending on how the process has been defined and structured within a specific sector or company. This is particularly true when Challenges are leveraged to supplement Stage Gates, companies can achieve near infinite problem-solving capacity and pay only for solutions, not failure”4. A Challenge is a well-formed problem statement that brings added value to a company. Challenges come in a variety of forms and can occur anywhere across the Stage Gate Process. By definition, Challenges are specific, detailed, and actionable.
Does most NPI follow a standard process? And if so, what is the value that companies have experienced?
According to research by Nielsen, companies that have gated innovation processes average 130% more new product revenue than companies with informal processes 5.
Stage Gate Process variants
Depending on the maturity of a company’s NPI process and the complexity/risk behind the product being introduced, the Stage Gate process can fall into various types 6 & 7:
For more detailed overviews, there are numerous websites and articles around the Stage Gate Process8.
With such fundamental ways a Stage Gate Process can improve a business, what are Best Practices to consider?
Work by Cooper identified seven High Productivity areas 9:
Best in Class Stage Gate Practices to consider:
Engaging Cultural, Strategic, and Behavioral Challenges
What would you like to see in future articles on how Best-In-Class companies are leveraging the methodologies, tools and techniques of Enterprise Excellence for success?
References:
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