Your SlideShare is downloading. ×
Beyond Stage Gate - A New Approach for Innovation Management
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Beyond Stage Gate - A New Approach for Innovation Management

9,993
views

Published on

Product innovation has been described as the way out of today’s difficult business environment. However, the rate of success of development projects, in particular white space or disruptive innovation …

Product innovation has been described as the way out of today’s difficult business environment. However, the rate of success of development projects, in particular white space or disruptive innovation projects remains too low.
We believe that a reason for the low success rate is the erroneous application of methods designed for incremental innovation like Stage Gate to projects with high levels of uncertainty. In this presentation we will discuss the different types of development projects based on degree of uncertainty, and the creation of different project tracks. Projects are managed using different tool sets based on the best fit between information available and decision making needs.

Published in: Business

2 Comments
26 Likes
Statistics
Notes
  • Biz desperately needs an effective means of innovation - this explains in depth the solution to guarantee successful innovation
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Thanks to Braden Kelley and Blogging Innovation for listing my presentation 'Beyond Stage Gate' in their Top 10 Innovation Slideshares list. If you like the subject of this presentation, I have other presentations where I discuss individual sections in more detail. This is the link
    http://www.slideshare.net/Brioneja/
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
9,993
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
0
Comments
2
Likes
26
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Beyond Stage Gate
    A New Approach For The Management Of Innovation Processes
    Jose A. Briones, Ph.D.
    @Brioneja
  • 2. 2
    Agenda
    • Introduction to the problem
    • 3. Review of conventional Stage-Gate
    • 4. Classification of Innovation Projects
    • 5. The Spiro-Level approach
    • 6. Summary
  • 3
    Legalese
    • Stage-Gate® is a registered trademark from Stage-Gate International’s Product Development Institute Inc.
    • 7. “The fair use of a copyrighted work, including such use by reproduction in copies or phonorecords or by any other means specified by that section, for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright” - Copyright Act of 1976, 17 U.S.C. § 107
  • 4
    • Ratio of R&D needed per unit of GDP output has gone from 1:1 in the early 90’s to ~3:1 in 2009 (Source: Dr. William Strauss, FutureMetrics)
    • 8. Success rates of innovation projects can be as low as 2.5% but rarely exceed 20% depending on when we define a project launch
    • 9. Effectiveness of product development process is broken
    • 10. We can no longer throw Ph.D.’s at a problem
    Problem
  • 11. 5
    Proliferation of Solutions
    • Where do they all fit?
    • 12. When do I use each tool?
    • 13. What is a reasonable expectation?
  • 6
    Challenge
    Create a unified framework for innovation projects/product development that
    Provides the flexibility needed for innovation to work
    Still has the metrics needed for proper measurement of progress and resource allocation.
  • 14. Innovation
    Twitter: @Brioneja www.Brioneja.com
  • 15. Classical Innovation Process
    Idea Generation
    Idea Selection
    Project Management
    Twitter: @Brioneja www.Brioneja.com
  • 16. Two Types of Innovation
    Incremental or sustaining
    Occurs in linear fashion
    Radical or disruptive
    Occurs in non-linear, discontinuous or
    iterative fashion
    Twitter: @Brioneja www.Brioneja.com
  • 17. 10
    Innovation Projects Classification and Segmentation
    Google’s Wave
    • Was it the appropriate decision?
    • 18. Short term versus long term?
    • 19. Product versus platform
    Orkut vs. Facebook - 2004
  • 20. Classical Innovation Management
    Standard processes for innovation management reflect the linearity of incremental innovation
    Stage Gate
    Waterfall
    Do not work well in disruptive or radical innovation
    Twitter: @Brioneja www.Brioneja.com
  • 21. 12
    Identify the source of the following quote:
    ‘I am become death, destroyer of worlds’
  • 22. 13
    Mediocrity
    "I am going to come to you with a contrarian view of innovation, deeply researched, with more than $7-million worth of data behind the assertion that the Stage-Gate model as we know it today is…going to guarantee total performance mediocrity for your businesses.
    Larry Keeley, president of Doblin, Inc
    April 2006
  • 23. 14
    Suitability
    “The Stage-Gate system is not suited to the task of assessing innovations whose purpose is to build new growth businesses, but most companies continue to follow it simply because they see no alternative”
    Clayton M. Christensen
  • 24. 15
    Classical Stage-Gate Process
    Source: Product Development Institute, Inc.
    Project is managed in a linear fashion
    “The Stage-Gate system assumes that the proposed strategy is the right strategy, the problem is that except in the case of incremental innovations, the right strategy cannot be completely known in advance” – Clayton M. Christensen
  • 25. 16
    Xpress and Lite Variations of Stage-Gate
    Source: R.G. Cooper, Stage-Gate International
    These modifications still use a linear approach to innovation project management.
  • 26. 17
    Modifications to Stage-Gate: “Spiral Development”
    Source: R.G. Cooper, Stage-Gate International
    Iterations occur within a stage, with no mechanism to start over
  • 27. 18
    Modifications to Stage-Gate
    “Simultaneous Execution” and “Stage Overlapping” can also be used to address some of the Stage-Gate deficiencies, but are not enough to overcome the restrictions of the linear approach.
  • 28. Disruptive Innovation
    Classical
    Business Management
    Iterative
    Estimates
    Flexibility
    Virtual teams
    Efficiency
    Forecast
    Progress Measurement
    Resource allocation
    How Do We Reconcile Conflicting Requirements For Disruptive Innovation?
    Twitter: @Brioneja www.Brioneja.com
  • 29. 20
    The need for iterations
    For Disruptive innovations, 1 round of VOC’s is not enough to be the cornerstone of a project
    • Customers cannot say that they want what they do not know
    • 30. Customers can only provide feedback on incremental modifications on what they do know
    • 31. Iterations are needed where customers evaluate a prototype and a new cycle starts, complete with a new VOC, market and business analysis
  • 21
    What are the Solutions?
    • Modify Stage-Gate into a real spiral approach: Spiro-Level
    • 32. Incorporate classification via level of uncertainty in your project portfolio management
    • 33. Manage different types of projects using levels on the Spiro-Gate
  • Solution
    Twitter: @Brioneja www.Brioneja.com
  • 34. 23
    Classical Product Development Classification
    Adjacent Markets
    vs.
    Blue Ocean
    New
    Market
    Existing
    New
    Existing
    Product
    Conventional product development categorization fails to
    acknowledge the differences in available information within
    each space
  • 35. Stepping
    Stones
    High
    Medium
    Low
    Positioning Options
    Platform Launches
    Project Classification
    Scouting
    Options
    Technical Uncertainty
    Enhancement
    Launches
    Low Medium High
    Source: The Entrepreneurial Mindset
    Market Uncertainty
    Projects are classified by how much we do NOT know
    Degree of uncertainty defines the track they take
    Twitter: @Brioneja www.Brioneja.com
  • 36. Spiral Approach
    Time
    Spiral has 3 levels
    Axis = Resources and Time
    High uncertainty projects start at level 1
    Move from learning/discovery to definition/forecast
    3
    2
    1
    Resources
    Twitter: @Brioneja www.Brioneja.com
  • 37. Tools Management
    T
    O
    O
    L
    S
    • Project analysis repeated
    • 38. Different Tools Selected
    • 39. Level 1 tools feed subsequent levels
    • 40. WHEN Vs. WHICH
    Twitter: @Brioneja www.Brioneja.com
  • 41. The Spiro-Level™ 3-D Approach to Innovation
    Resources
    Launch
    Quadrant IV
    Quadrant I
    Roadmap/Timeline
    Idea
    Generation
    Level
    3
    Risk Analysis
    VOC
    2
    Customer
    Testing
    1
    Time
    Time
    Technology
    Assessment
    Supply Chain
    Analysis
    Business
    Case
    Value in Use
    Analysis
    Regulatory
    IP Strategy
    Prototype
    Development
    Quadrant II
    Quadrant III
    Resources
    Twitter: @Brioneja www.Brioneja.com
  • 42. 28
    Managing Projects
    • Projects at different levels of uncertainty must be managed differently
    • 43. Expectations must be different
    • 44. Tools to manage them must be different
  • 29
    The Business Development Management Role
    • Must reduce the projects’ level of uncertainty
    • 45. Transform options and stepping stones into platforms
    • 46. Generate products/opportunities from the platforms that can be managed with conventional financial and project management tools
  • 30
    Relationship Between Spiro-Level and Project Type
    Level 1
    • Positioning and Scouting Options
    • 47. Stepping Stones
    Level 2
    • Platform Launches and Projects
    Level 3
    • Enhancements and individual product launches
  • 31
    Keys to the Process
    • Time and resources start small, increase as the levels go up
    • 48. The analysis is repeated at each level, but the tools used for each level are different.
    • 49. Level 1 uses tools more suitable for high levels of uncertainty, i.e. Discovery Driven Planning, Probabilistic Decision Analysis
    • 50. Level 3 uses more conventional management tools, i.e. Linear Stage-Gate, NPV
  • 32
    Reviews
    Management and Project teams define number and type of reviews
    • Agreed upon timeline and level of resources defines the number of reviews
    By Quadrant
    By Level
    • Level 1 does not need as many reviews as Level 3
  • 33
    Tools for Overall Project Management
    Level 1
    • Discovery Driven Planning
    • 51. Knowledge to Assumption Management
    Level 2
    • Product/Technology Roadmaps
    • 52. Multigenerational Product Planning
    Level 3
    • Linear Stage-Gate
    • 53. Agile Development
  • 34
    Tools for Product Attribute Value Analysis
    Level 1
    • Market Perceived Quality Profile
    Level 2
    • Kano Analysis
    Level 3
    • Conjoint Analysis
  • 35
    Tools for Voice of the Customer
    Level 1
    • Unmet Needs – KJ Analysis
    Level 2
    • Job to be Done
    Level 3
    • Product Features
    VOC Level 1: Broad and shallow
    VOC Level 3: Deep and detailed
  • 54. 36
    Tools for Financial Analysis
    Level 1
    • Reverse Income Statement
    • 55. Real Options
    Level 2
    • Probabilistic Decision Analysis
    Level 3
  • 37
    Summary
    A modified Spiral approach to innovation project management can be used to:
    • Integrate project portfolio management by level of uncertainty
    • 57. Manage different types of projects using the appropriate tools
    • 58. Maintain the right framework to track progress and resources but provide the flexibility that innovation projects need for success
    This approach has already been successfully used to create a disruptive innovation product for the construction industry
  • 59. 38
    Epilogue by Clayton Christensen
    “We keep rediscovering that the root reason for established companies’ failure to innovate is that managers don’t have good tools to help them understand markets, build brands, find customers, select employees, organize teams, and develop strategy”
    “Some of the tools typically used for financial analysis, and decision making about investments, distort the value, importance, and likelihood of success of investments in innovation”
    “There’s a better way for management teams to grow their companies. But they will need the courage to challenge some of the paradigms of financial analysis and the willingness to develop alternative methodologies”
  • 60. Conclusion
    This framework for innovation projects provides
    The flexibility needed for successful innovation projects in any industry
    The metrics needed for proper measurement of progress and resource allocation.
    Twitter: @Brioneja www.Brioneja.com
  • 61. 40
    Contact Information
    • Jose A. Briones, Ph.D. (Brioneja)
    • 62. Twitter: @Brioneja
    • 63. Brioneja@spyrotek.com
    • 64. www.Brioneja.com