The Stage-Gate Model

Learning Objectives
The learning objectives for this chapter are: To introduce you to the Stage-Gate model.

To enable you to use the model as a framework for

business exploitation

Introduction
It is very easy, at the start of a new technology business venture, to get caught up with all the hype and excitement. You have something so innovative that it will change the way everyone thinks about everything, and you just cant wait to get it on shelves. However, without a well-defined process from concept to launch, it is more than likely that it will fall flat on its face, leaving you out of pocket. The Stage-Gate model, originally designed by Dr. Robert G. Cooper, is an extremely useful and powerful tool in product development. It splits progress into a series of Stages and Gates to give a well organised and structured flow to the project. Research has shown that businesses that implement the StageGate model are much more likely to have success when marketing their product or service, because they have followed a well structured procedure which covers all of the bases. If it turns out that a new technology isnt viable for a profitable product, use of the Stage-Gate model should identify this early, and development can cease.

Technical Content
So, what are Stages and Gates and how is the Stage-Gate model organised? Well, Stages are essentially activities within the

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The Stage-Gate Model

development process, and Gates are decision points (normally in the form of meetings). The Stage-Gate model allocates well-defined activities and decision points into a flow diagram shown below.

Image from http://www.prod-dev.com/stage-gate.shtml

This is the generally accepted format of the adapted Stage-Gate model. The adaptation comes in the form of the Discovery Stage and the Post Launch Review which add additional levels of freedom.

The Stages
Scoping: This deals with the initial market research stage, it is an opportunity to see what products are out there (or in current development) that might be a threat, and determine whether a commercially viable product could be produced. It should not be too in depth, just a quick scan of the market. Build Business Case: Really an extension of Scoping, but delves more deeply into commercial prospects and feasibility of product production. This should culminate in a Business Case document detailing the proposed product and project definition, a project justification, and a project plan. Development: The development stage turns the Business Case document into a full blooded Business Plan detailing everything from sales and cost forecasts, to legal considerations and quality standards. Testing and Validation: Makes sure that the project as a whole has run smoothly and that there will be no nasty surprises coming up to the launch.

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The Stage-Gate Model

Launch: The final stage of the process, which takes the project to full commercialization. Manufacturing starts and the journey from idea to product/service is complete.

The Gates
The gates are evaluations of progress so far, and feasibility of the project. They determine whether the project should continue based on any deliverables that are required for that stage. Each gate should have a specified set of deliverables so that this evaluation can take place as quickly and efficiently as possible. It should also have clearly defined criteria by which viability of continuation can be judged. The output of a gate should also be clearly set out. It should identify whether the project should continue or be culled, and specify dates and deliverables for the next gate should it continue. For more information on the Stage-Gate system, go to the Product Development Institute official site at: http://www.prod-dev.com/stage-gate.shtml There is also a reference on the 12Manage.com website at: http://www.12manage.com/methods_cooper_stage-gate.html

Useful References for Further Reading

Many useful articles on product development using the Stage-Gate model including variations of the model for technology development projects can be found at: http://www.prod-dev.com/research.shtml

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