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Exhibit 1: The Four Points of Performance in the Innovation Diamond – [dgi]ZWjh^cZhh
the four main factors that drive NPD performance results

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Based on a major APQC study
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Exhibit 2: Best performing businesses develop a Product
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Clearly defined NPD goals 38.1% Worst Performers
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goals
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58.6%

Strategic arenas defined –

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37.9%
likely to use roadmaps as poor
performers – 37.9% versus 19.2%.
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Exhibit 3: The ABC’s of defining your business’s Product Innovation Strategy
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Define:
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Strategy & Goals
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Exhibit 6: Strategic Portfolio Management practices in best performing
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3.8%
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0.0%
Portfolio has excellent balance
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Portfolio contains high 0.0%
value projects
Balance – sufficient resources 4.0%
for number of projects
0% 10%
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Business Strategy &
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Portfolio Review: Stage-Gate® Process:
2. Tactical Ø Holistic
Portfolio Ø All projects in auction
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Project Ran Gate
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Exhibit 10: The Productivity Index – an index used to rank development
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• Take what you are trying to maximize
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• And rank your projects by this index until out of resources
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• Example:
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NPV= forecasted NPV of the
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Exhibit 11: Determination of Expected Commercial Value of a Project
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A model of a two-stage investment decision process: First, invest $D in development, which may yield a
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sophisticated versions of this model would entail more stages than the two shown here, and an array of possible
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for significant new product projects
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Product Development Institute Inc.

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Customer focused – voice-of-custom er 15.4% XdcigVhi!eddgeZg[dgbZghiZcYbjX]bdgZidYZkZade
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work; identify customers needs/problem s 69.0%
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Front end loaded – an emphasis on 38.5%
homework prior to Developm ent
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62.1% VYkVciV\Z#
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competitors’ in m eeting custom er needs 58.6% >c VYY^i^dc! WZhi eZg[dgbZgh hig^kZ [dg ]^\] fjVa^in
Excellent quality-of-execution: 18.7%
all activities, idea-to-launch
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points thru-out the process 51.7%

15.4%
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NPD project performance metrics 30.0%
(e.g. NPV, sales, on-time launch) 44.8% egd_ZXihgZVaanYd\Zi`^aaZY0VcYi]Z^gegdXZhh^cXajYZh
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A Process Manager in place 42.5%
51.7%
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Exhibit 14: An Overview of NexGen Stage-Gate®
2nd Screen
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Exhibit 15: Spiral Development: A series of “build-test-feedback-revise”
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Exhibit 16: The climate & culture for innovation, and the role of senior
management, are keys to success in NPD
Senior management
strongly committed to NPD
NP metrics are part of senior
management’s annual objectives
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entrepreneurship & innovation
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projects encouraged
Tim e-off for creative work;
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for projects
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Exhibit 17: How best performing businesses organize their teams for NPD
Team is cross-functional: Technical,
Marketing, Sales, Operations
Projects undertaken b y cleared
identified team of players
23.1%
Team does project from
beginning to end – no hand-offs
Identifiable project team leader
Leader from beginning to end
Team has central & shared
inform ation system, IT based
Team members accountable for
project’s end results
0%
Worst Performers
Average Business
Best Performers
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www.stage-gate.com
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The “World’s Top Innovation Management Scholars”

Dr. Robert G. Cooper

Dr. Robert Cooper is one of the most influential innovation thought leaders
in the business world today. He pioneered the original research that led to
many ground-breaking discoveries including the Stage-Gate® Idea-to-
Launch process. Now implemented by almost 80% of North American
companies, it is considered to be one of the most important discoveries in
the field of innovation management. He has spent more than 30 years
studying the practices and pitfalls of 3,000+ new product projects in
hundreds of companies and has assembled the world’s most
comprehensive research on the topic. His presentations and practical
consulting advice have been widely applauded by corporate and business
audiences throughout the world.

A prolific author, he has published more than 90 academic articles and

seven books, including the best selling ‘Winning at New Products, Third
edition’. He is the recipient of numerous prestigious awards including the
Crawford Fellow from the Product Development and Management
Association (PDMA) and the Maurice Holland Award from the Industrial
Research Institute (IRI). Dr. Cooper is a Professor of Marketing and
Technology Management at the Michael G. DeGroote School of Business at
McMaster University in Ontario, Canada and Distinguished Fellow at the
Institute for the Study of Business Markets (ISBM) at Penn State
University.

Dr. Scott J. Edgett

Dr. Scott Edgett is internationally recognized as one of the world’s top
experts in product innovation and is the pioneer of portfolio management
for product innovation. He is a high profile speaker and sought-after
consultant. Dr. Edgett has extensive experience working with large
multinational clients in a variety of industries, principally focusing on
issues affecting innovation leadership and capability. He is credited with
helping business executives and innovation professionals successfully
implement world-class innovation processes that have generated
outstanding results. His speaking engagements and consulting work have
taken him around the globe to work with some of the world’s best
innovators and companies among the Fortune 1000.

Dr. Edgett is Chief Executive Officer and co-founder, with Dr. Cooper, of
both Product Development Institute Inc. and Stage-Gate International. He
has spent more than 20 years researching and developing innovation best
practices and working with organizations in product innovation. He is a
prolific author having co-authored six books including the popular
‘Portfolio Management for New Products, 2nd Edition’ and has published
more than 60 academic articles. Dr. Edgett is a former Professor of the
Michael G. DeGroote School of Business, McMaster University in Ontario
and is a Faculty Scholar at ISBM at Penn State University.

16

© Product Development Institute Inc. 2000-2010

Stage-Gate International
helps companies achieve successful product innovation.

“Top performing companies focus on the

four drivers of The Innovation Diamond.”
Dr. Robert G. Cooper and Dr. Scott J. Edgett
Founders of Stage-Gate International

Diamond
The Innovation
™
Product Innovation &
Technology Strategy

Climate, Culture New Product Portfolio

& Leadership Performance Management

Idea-to-Launch
System: Stage-Gate®

Are you ready to win?

Achieve the four drivers of performance:
Innovation efforts that support business goals
Projects that achieve maximum value
Climate and culture that embrace innovation
Process that drives lean, rapid and profitable innovation

Stage-Gate International +1-905-304-8797 info@stage-gate.com www.stage-gate.com

The Stage-Gate International Advantage
How we can help you win at product innovation
Results Reach
proven track record successful client
helping companies engagements across
improve their numerous industries,
product innovation countries and
capabilities cultures
Consistent, repeatable product innovation success is within your reach.
SG Navigator™
The complete guide to customizing, implementing
and using the authentic Stage-Gate® system.
Packaged into a professional, user friendly interface
accessible through your web browser, this expert
guide contains a collection of the best of the best -
practices, proprietary methods, criteria, templates,
worksheets and deliverables. Everything you need to
drive lean, rapid, and profitable product innovation in
your organization.
SG Benchmarker™
Compare your organization’s innovation performance
and practices against the best. This cost-effective,
convenient and reliable assessment isolates your
strengths and weaknesses against proven
performance drivers. Fact-based information
to help you make critical decisions.
Inspiring Speakers
Invite internationally acclaimed product innovation
experts, Dr. Robert G. Cooper and Dr. Scott J. Edgett,
into your organization to motivate and inspire your
team to embrace the proven drivers of innovation
success.
Seminars and In-house Training
High impact, interactive and intense knowledge
transfer events where our expert speakers and trainers
cut through the issues and focus on best practice
solutions to the most critical challenges faced by
product innovators.
Stage-Gate International
Experience Research Leadership
breadth and depth comprehensive, The world’s most
via front line peer reviewed and respected experts in NPD –
experience with longest running Dr. Robert G. Cooper and
5000+ clients benchmark studies Dr. Scott J. Edgett
Implementation Services
Highly focused engagements designed to accelerate
the successful implementation of proven innovation
practices. Based upon a collection of world class
techniques and methods and delivered by highly
skilled, experienced implementation specialists.
Consulting Services
Highly specialized engagements tailored specifically
to meet your company’s unique innovation challenges
and needs. Our product innovation experts draw on
an impressive collection of tools, methods and
expertise to help you measure, analyze, design and
execute.
Books and Reports
Best selling books and research reports on the topics
critical to product innovation success. Cooper and
Edgett’s collective works are considered to have
achieved the most powerful impact on performance
in product innovation today.
Stage-Gate Ready Certification
Save time sourcing vendors to support your
Stage-Gate process such as Idea Management,
Idea-to-Launch Processes and Portfolio
Management. The Stage-Gate Ready Certification
program validates software applications against
some 200 innovation-related criteria to reduce
risks and costs incurred by would-be buyers
during the selection process.
®
+1-905-304-8797 info@stage-gate.com www.stage-gate.com
 RESOURCES FOR PRODUCT INNOVATION PROFESSIONALS 

Join the Official Stage‐Gate® Product Innovation Knowledge Community 

Receive the latest research, information and tips to keep you current in product 
innovation.    By  joining  our  Knowledge  Community  you  will  receive  advance 
copies of articles, newsletters and research papers and will be the first to hear 
about new products, book releases, seminars, and conference events. 

Visit www.stage‐gate.com to join today 

Learn More About Our Public Seminars and In‐House Training Events 

Deciding Your New Product Portfolio 
Winning at New Products 
Generating Breakthrough New Product Ideas 
Pathways to Profitable Innovation 
Advanced Techniques for Maximum Productivity in Innovation 
Technology Developments, Platforms & Fundamental Research 
Accelerating the Adoption of Stage‐Gate Best Practices 
Portfolio Management for New Products 
Gatekeeper College 
Stage‐Gate Team Training 
Product Innovation Roadmapping 

Visit www.stage‐gate.com for more information 

   
 PRODUCT INNOVATION RESOURCES FOR ORGANIZATIONS 

About Stage‐Gate International 

Stage‐Gate International is the world’s leading full‐service provider of products 
and  services  which  enable  organizations  to  improve  their  product  innovation 
capabilities and performance.  A globally‐recognized and trusted brand with 25+ 
years  of  experience,  we  accelerate  client  success  through  our  unique  and 
powerful  combination  of  premier  benchmarking  research,  rich  content  and 
collaborative  consulting  and  training  services.  Our  clients  include  5000+ 
organizations of all sizes across all industries. 
 

Learn More About Our Complete Offering of Specialized Solutions 

Assessing and Diagnosing Product Innovation Performance 
Benchmarking Performance, Practices and Processes 
Creating Product Innovation and Technology Strategies 
 Designing, Improving and Implementing Stage‐Gate® Idea‐to‐Launch Systems 
Designing and Delivering Corporate Training Programs  
Evaluating and Certifying Product Innovation Software Applications   
New Product Portfolio Management Decision Frameworks  
Product and Technology Roadmapping 

Visit www.stage‐gate.com or contact us at +1‐905‐304‐8797