Stage Gate - Lecture 1 1
Stage Gate – Lecture 1
Technology Development
© 2009 ~ Mark Polczynski
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Strategic Technology Planning
•Scenario Planning
•Voice of the Customer
•Intellectual Property Generation
•Ideation
•Technology Roadmapping
Strategic Technology Development
•Stage Gate Development
•Stage Gate Review
This Course:
Strategic
Technology
Management
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Scope of This Lecture Set:
• We focus on technology development,
• But the same basic principles apply to product development.
• This is about technology development and project review.
• It is about a system where project review is an integral part of technology development.
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Integrating the development and review process
• Often, project execution and project review are two separate processes.
• It is desirable to integrate these two processes, because you get: - Better project results, - Better project review decisions, - Faster decisions – projects move faster, - Happier people:
- Everyone knows the rules of the game beforehand,- Everyone follows the rules all the time,- Everyone’s expectations are kept realistic.
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Stage Gate Process:
1. What problem are we trying to solve?
2. Stage gate development process.
3. Stage gate review process.
4. Review process cultural issues.
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What Problem We Are Trying To Solve?
Example: Eaton Corporation -
• ~ 10,000,000,000 ~ $10 billion annual sales,
• Goal: 10% increase in sales per year,
• Driven by stock market expectations,
• And stock market is “main customer” in capitalistic system.
That equates to $1B in new products per year – every year!(compounded!)
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What’s The Problem We Are Trying To Solve?
• Need new products that can “move the needle”.
• Hard to get to $1B by adding $1M at a time.
• You need 1,000 new products!
• Significant growth in many small increments is difficult to manage.
• Many low-impact products are difficult to support.
• Solution: Fewer high-impact projects.
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What about small businesses?
•It doesn’t matter if you are one of10,000 engineers trying to add$1B in sales for Eaton Corporation.
•Or Joe of Joe’s Garage Shoptrying to add $1,000 in sales.
•Trying to grow by $1,000 in$10 increments is hard to manageand hard to support when you are done.
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What’s the MAIN Problem We Are Trying To Solve?
Many Small Projects In Many Low-Impact Products Out
New Product Pipeline
Before: Difficult to manage many small projects.
After: Difficult to support many small products.
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What’s do we want to have?
New Product Pipeline
Many Small Projects In Few High-Impact
Products Out
Question: How do we figure out which projects to keep?
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1. Planning
2. Preparation
3. Ideation Event
4. Post-Processing
Stage Gate Process
Project Proposals
Need to keep only the best
Large number of good ideas
Ideation Process:
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To
tal N
UM
BE
R o
f P
roje
cts
Overall Goal: Weed out projects that have low impact.
Av
era
ge
IMP
AC
T P
er P
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ct
Early Project Life Late
Problem:We don’t know the winners at the start of their life.
Goal:Survival of the best.
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We must kill many of these projects…
…but how do we discover which are the best?
Many Small Projects In Few High-Impact
Products Out
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To
tal N
UM
BE
R o
f P
roje
cts
Overall Goal: Maximize Bang-For-The-Buck.
Av
era
ge
e C
OS
T P
er P
roje
ct
Early Project Life Late
Kill losers before you
spend lots of money on them
Feed the winners
well
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Possibly the biggest cause for failure of good projects:
• Under-funding Lack of adequate resources.
• Inability to ruthlessly focus on only the best opportunities.
• Inability to identify best opportunities early in life.
Stage Gate Development
Process
Stage Gate
Review Process
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Stage Gate Process:
1. What problem are we trying to solve?
2. Stage gate development process.
3. Stage gate review process.
4. Review process cultural issues.
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Product Development Stage Gate Process
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Technology Development Stage Gate Process
Balance Opportunity (Why?)
andTechnology (What?)
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Note: This first gate could be part of ideation process
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1. Planning
2. Preparation
3. Ideation Event
4. Post-Processing
Stage Gate Process
Project Proposals
Stage Gate Initial
Screen
Ideation Process:
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Technology Development Stage Gate Process
To Stage Gate Product Development
Begin with the end in mind:What do we need tosupport stage gate
product development?
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What do we need to support stage gate product development?
By the end of Stage Gate technology development, we will be able to answer Yes or No to these questions:
1. Does our technology actually work under real world conditions?
2. Can products based on this technology actually be designed and manufactured at an acceptable cost?
3. Can the technology provide a unique competitive advantage?
Begin with the end in mind...
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Technology Development Stage Gate ProcessEnd game:• Technology works in field?• Designable - manufacturable - profitable?• Unique?
Moving to the basics:Stage Inputs and GoalsMoving to the basics:
Stage Inputs and GoalsMoving to the basics:
Stage Inputs and Goals
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A: Problem Statement• What problem are we trying to solve?• How would this provide value for the customer?
A: Identification• What technologies might solve the problem? (long list)• Which technologies will we investigate in Stage B? (short list)• Is there a chance to create Intellectual Property?
Questions to answer at the end of Stage A
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B: Functional Requirements• What is the specific application?• What functions does the customer need?
B: Feasibility• Which technology will we use? (select one)• Does technology work in the lab?• What is our strategy to create IP?
Questions to answer at the end of Stage B
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Technology Development Stage Gate Process
C: Physical Requirements• Under what real world conditions must the functions be provided?
C: Demonstration• Does technology work in real world conditions ?• Can we make/sell a product? (tech transfer)• What is our IP?
Questions to answer at the end of Stage C
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Stage A Technology Development Work
• What technologies might solve the problem? (Make long list)• “Ideation” sessions and literature search, including patents, to:
• Expand understanding of the Problem Statement.• Reveal prior art.• Identify possible technologies.
• Which technologies should we investigate? (Make short list)• Analyze technical feasibility - why might these solutions work?.• Assess technical risk - why might these solutions not work?
• Is there an opportunity to create Intellectual Property?• “Ideation” sessions - to identify novel potential solutions.• Document concepts - to establish prior art for all novel solutions.
Note: Stage A does not include experimental work.
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Stage B Technology Development Work
• Which particular technology will we use? (select one)• Analyze technical feasibility - why should the selected solution work?• Assess technical risk - why might this solution not work? • Assess technology transfer issues -
• Why might it be difficult to design products?• Why might it be difficult to manufacture products?• What might jeopardize cost targets?
• Can we meet the functional requirements? (lab conditions)• Construct lab models - can we make it work in the lab?• Perform lab tests - how does it perform in the lab?• Establish “proof of concept”.
• What is our strategy to create Intellectual Property?• Assess novelty - do we have a new solution?• Document inventions - describe our solution (invention disclosures).• Initiate IP strategy - what is the opportunity to create a proprietary position?
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Stage C Technology Development Work
• Can we meet the physical requirements? (field conditions)• Demonstrate field operability - does it work under field conditions?• Test under field conditions - how will it function in the field?
• Can the division make a product? (tech transfer)• Assess technology risk - what problems might occur in the field?• Assess technology transfer issues -
• What are all the things needed to design products?• What are all the things needed to manufacture products?• What are all the things that drive cost?
• What is our Intellectual Property?• Describe claims - what, exactly, have we invented?• Document IP - “teach” others how our technology works.• Complete IP strategy - who will do what by when to create proprietary position?
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What technologies might solve problem?
- “Ideation” sessions and literature search
- Expand understanding of problem.
- Identify possible technologies.
Which technologies should we investigate?
- Analyze technical feasibility
- Assess technical risk
(No experimental work)
Is there a chance to create IP?
- “Ideation” sessions to ID new solutions
- Scan for prior art
- Document concepts - establish prior art
Comparison of Technology Development Work
(Need new Stage A projects?)
Can we actually make a product?
- Assess technical risk
- Assess technology transfer
- Who will design?
- Who will manufacture?
Will it work in field conditions?
- Demonstrate field operability
- Test under field conditions
What is our IP?
- Describe claims - what is new?
- Document IP - how does it work?
- Complete IP strategy
Stage A Stage B Stage C
(Need new Stage A projects?)
Which technology will we use?
- Analyze technical feasibility
- Assess technical risk
- Assess technology transfer
- Potential design issues?
- Potential manufacturing issues?
Does technology work in lab?
- Construct lab models
- Perform lab tests
What is our plan to create IP?
- Assess novelty - is it new?
- Document inventions - what is it?
- Initiate IP strategy
Ide
ati
on
An
aly
sis
Ex
pe
rim
en
tsIP
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Comparison of Technology Development Work
Can we actually make a product?
- Assess technical risk
- Assess technology transfer
- Who will design?
- Who will manufacture?
- Technology roadmapping
Will it work in the field?
- Demonstrate field operability
- Test under field conditions
What is our IP?
- Describe claims - what is new?
- Document IP - how does it work?
- Execute IP strategy
Stage A Stage B Stage C
Which technology will we use?
- Analyze technical feasibility
- Assess technical risk
- Assess technology transfer
- Potential design issues?
- Potential manufacturing issues?
Does technology work in lab?
- Construct lab models
- Perform lab tests
What is our plan to create IP?
- Assess novelty - is it new?
- Document inventions - what is it?
- Plan IP strategy
What technologies might solve problem?
- “Ideation” sessions and literature search
- Expand understanding of problem.
- Identify possible technologies.
Which technologies should we investigate?
- Analyze technical feasibility
- Assess technical risk
(No experimental work)
Is there a chance to create IP?
- “Ideation” sessions to ID new solutions
- Document concepts - establish prior art
Ide
ati
on
An
aly
sis
Te
sti
ng
IP
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Build Patent As We Execute Stages
• What’s the problem?
• What have others done?
• Why is this inadequate?
• Field of Use
• Prior Art
• Description of
Invention
• Claims
• What is our solution?
• Why is it better?
• What do we claim exclusive rights to?
A
Stage
B
C
Patent Section Purpose
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Specific Stage Gate IP Elements
These three IP-related elements are addressed at Stage Gate reviews:
1. Problem/Solution Statement:
• What problem are we trying to solve?
• How will we solve it?
2. IP/Literature Scan:
• Who has done what to solve this problem?
3. IP Strategy:
• How will we protect our IP?
A B C
Required Required Required
RequiredRequiredRequired
NotRequired
Required Required
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What do we need to support stage gate product development?
By the end of Stage Gate technology development, we will be able to answer Yes or No to these questions:
1. Does our technology actually work under real world conditions?
2. Can products based on this technology actually be designed and manufactured at an acceptable cost?
3. Can the technology provide a unique competitive advantage?
Begin with the end in mind...