MKT 3295: Quiz 5 The Stage-Gate Idea-to-Launch System

Stage 5: Launch

Full commercialization

Stage 3: Development

Actual design and development initiated A prototype is developed which undergoes in-house and limited customer testing Marketing launch plans are developed; test plans for next stage are defined *Ends with a physical product *Alpha Test

Stage 2: Build Business Case

Business Case - (1) clearly defines the product, (2) verifies its attractiveness, and (3) details an Action plan Successful outcome of this step includes a well defined product (on paper), a business justification & detailed plans for next stages

Gate 5: Go to Launch

Focuses on quality of the activities in the testing & validation stage If results in previous stage were positive then this gate is usually passed

Stage 1: Scoping

For the ideas, determine market attractiveness and technical merits Market attractiveness deal with key customers and/or a focus group; sales force Technical merits include technical and associated legal risks and roadblocks

A gate is a ________

Decision point

Gate 4: Go to Testing

Development work is reviewed and tested for quality and is checked to make sure that it follows the definition specified in Gate 3 Economic justification for launching the product is examined again

The Stage-Gate Idea-to-Launch System

Discovery Gate 1: Idea Screening Stage 1: Scoping Gate 2: Second Screen Stage 2: Build a Business Case Gate 3: Go to Development Stage 3: Development Gate 4: Got to Testing Stage 4: Testing and Validation Gate 5: Go to Launch Stage 5: Launch Post-Launch Review

Gate 1: Idea Screen

First decision to commit resources to ideas Ideas are subjected to a handful of MUST-MEET and SHOULD-MEET criteria Such criteria essentially deal with strategic alignment of the company, ability to leverage company resources, market attractiveness, technical feasibility

Stage 5: Post-Launch Review

In about 6 - 18 months this new product project is terminated and the product becomes a part of the regular product mix A product performance review is done - the latest figures (costs, sales, expenditures, profits, timings) are compared with projections Everything in the process is reviewed & learnt carefully for future reference

Gate 3: Go to Development

Last place where an idea can be killed before incurring significantly huge expenses Re-evaluates Stage 2

Gate 2: Second Screen

Second and rigorous screen Ideas re-evaluated in the light of new information obtained in Stage 1 Additional 'should-meet' 'must-meet' criteria deal with customer and sales force reactions; the criteria also looks into the potential legal variables as uncovered in Stage 1

Beta Testing

Tested outside the organization

Alpha Test

Tested within the organization

Discovery

This is the idea generation stage; very important since this initiates the entire process Could involve undertaking research, listening to the customer, competitive analysis, installing an idea suggestion scheme to stimulate idea generation from employees; employing 'open innovation'

Stage 4: Testing

Verification and validation in terms of its marketing and production plans Extensive in-house product testing, customer testing, and/or trials in marketplace Outcome is a fully tested product and production process ready for commercialization *Where marketers come in *Alpha and Beta Testing

Stage-Gate® full

for genuine new products; usually typically larger, more uncertain, or more risky project

Stage-Gate® Express

for project with moderate risk (product improvements, modifications, and/or extensions); usually these are the majority of processes that essentially keep the product line fresh and up-to-date; system reduced to 3 stages & 3 gates; the activities list per stage is similarly shortened

Stage-Gate® Lite

for very small projects like customer requests for a minor modification to an existing product; only 2 stages