Stage Gate Process
Stage Gate
It is a value-creating business process and risk model
designed to quickly and profitably transform an
organization's best new ideas into winning new
products. It helps in moving a new product project
from idea to launch. It helps to break innovation
process into set of stages.
Stage Gate-Idea to Launch
Process
Each Stage Followed by gate
Integrated
Analysis;
Activities: An Deliverables: Go/Kill:
Information integrated The result of Results are
gathering analysis of integrated assessed and a
activities by the analysis- decision to
the project activities Input to the invest more is
team by the gate made.
project
team.
•Market Discovery
Stage 0 •Packaging Discovery
•Technology Discovery
Discovery •Legal Discovery
•Operational Discovery
•Market & Consumer Research
Gate 1 Stage 1 •Concept Generation
Idea Definition •Draft of claim
•Design/Engineering expense approval
•Timeline.
•Design/Engineering creation & reviews
•Strategic fit
•Cost Finalized
Gate 2 Stage 2 •Launch and promotions defined
Program Development •Legal reviews
Objective •Product specification
•Prototype creation
•Business plan
•Capital Approval
•Packaging
Gate 3 Stage 3 •Pilot run
Capital/Project Deployment •Launch & promotion created
approval •Purchase orders issued
Gate 4 •Production audit
Ship from •Distribution audit
Stage 4
Stock •Promotional audit
Post Audit
approved
Stages
Stages are the plays where different players perform
different tasks . Each stage is designed to gather
information and undertake tasks needed to progress
the project to the next gate or decision point. Each
stage is cross-functional .Each stage consists of a set of
parallel activities undertaken by people from different
functional areas within the firm.
Gate 1 – Idea
Screening/Discovery
•The initial GO/KILL Decision.
•First but tentative commitment of resources: a
flickering green light.
•Develop a forward plan for Stage 1
Must Meet Criteria for GO: Minimum Market Size, No
Show-Stoppers .Should Meet Criteria : Strategic Fit,
Technical Feasibility, Market Attractiveness,
Competitive advantage.
Stage1 -Scoping
•A preliminary investigation.
•Within one month
•Key Tasks
-Preliminary Market Assessment.
-Preliminary Technical Assessment.
-Preliminary Business Analysis.
Gate Deliverables – Product Description.
Gate 2 – Program
Objectives
•Second Review: Better Information
•Should Meet Criteria : Strategic Fit, Technical
Feasibility, Market Attractiveness, Competitive adv,
Core Competency, Risk/Reward.
Gatekeepers have to take the decision for the
approval of the forward Plan and Resources.
Stage 2 –Build the Business
•Makes or breaks the Project.
•Detailed Investigation.
•The Business Plan/Feasibility
Key Tasks:
-Market Analysis
-Competitive Analysis
-Voice of Customer
-Concept Test
-Technical: Proof of feasibility
-Production/operations
-Legal
-Management
-Financial
Gate 3 – Capital/Project
approval
•The money Gate . Opens the door to full scale
development & heavy commitment.
Must have:
•Complete plan.
•Defined product.
•Full financial review.
Stage 3 –Deployment
Implementation of Development Plan.
•Develop the product as per definition.
•Undertake in-house product testing (lab, alpha).
•Conduct limited customer test via “show & tell”.
•Develop manufacturing (operations) process.
•Develop detailed Test Plans.
•Develop Launch Plans .
•Detailed Market Launch Plan.
•Production/Operations & Quality
Assurance plans.
Gate 4 – Ship from stock
approved
•The final gate in which the approval for final
shipment is done.
Stage 4 – Post audit
Following activities are done in this stage.
•First production run.
•Manufacturing and supplier audit.
•Final gate in which the approval for final shipment
is done.