STAGES
How Does the Stage-Gate® Process
Work?
Product innovation begins with an idea and ends with the successful
launch of a new product. The steps between these points can
be viewed as a dynamic process. Stage-Gate divides this process
into a series of activities (stages) and decision points (gates).
Stages are where the action occurs. The players
on the project team undertake key tasks to gather information
needed to advance the project to the next gate or decision
point. Stages are cross-functional (there is no research and
development or marketing stage) and each activity is undertaken
in parallel to enhance speed to market. To manage risk, the
parallel activities in a certain stage must be designed to
gather vital information - technical, market, financial, operations
- in order to drive down the technical and business risks.
Each stage costs more than the preceding one, resulting in
incremental commitments. As uncertainties decrease, expenditures
are allowed to rise and risk is managed.
 Following
idea generation, there are five key stages:
| Stage 1 - |
Scoping: A quick and inexpensive
assessment of the technical merits of the project and
its market prospects. |
| Stage 2 - |
Build Business Case:
This is the critical homework stage - the one that
makes or breaks the project. Technical marketing and
business feasibility are accessed resulting in a business
case which has three main components: product and project
definition; project justification; and project plan. |
| Stage 3 - |
Development: Business case plans
are translated into concrete deliverables. The product
development activities occur, the manufacturing or operations
plan is mapped out, the marketing launch and operating
plans are developed, and the test plans for the next
stage are defined. |
| Stage 4 - |
Testing and Validation: The purpose
of this stage is to provide validation of the entire
project: the product itself, the production process,
customer acceptance, and the economics of the project.
|
| Stage 5 - |
Launch: Full commercialization
of the product - the beginning of full production and
commercial launch. |
Stage-Gate System
| Stages | Gates
| Benefits
|
