The document discusses implementing an innovation process in high-tech companies. It recommends adopting a stage-gate model to structure the innovation process. The stage-gate model formalizes the process into stages of activity separated by gates for review and decision-making. Key stages include discovery, scoping, business case development, development and testing, and product launch. Implementing this structured approach can help companies reduce risks and increase success of new products.

1. Innovation Process Implementation in High-Tech
Companies
Overview Session
Guy Laliberté, February 2010
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010

2. Implementing an Innovation Process
Introduction
■ Innovation in High Technology Companies
■ Many companies focus on Product development and not product innovation
■ They put money in developing products before knowing if the product can become “an
innovation” and be launched with success on the market.
■ Many companies spend money on the development and forget the market
■ They spend a lot of money on designing the technology and forget about launching it.
Resources must be allocated to all aspect of a product and not only the technology.
■ Product Development and Management Association (PDMA)
■ In 2007 : 60 % of firms surveyed in the US are now using some form (partial
or extended) of a Stage-Gate Process for their product innovation. A direct
link has been observed between companies performing well and how far the
Stage-Gate process has been implemented.
■ Innovation must become part of the culture of companies to target growth
■ Product Innovation ≠ Technology Development
■ Rapidly evolving markets require a structured product innovation approach
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 2

3. Implementing an Innovation Process
Innovation in High-Tech Companies
■ Culture of Innovation
■ To be resilient and target growth, a high-tech company must “deeply integrate”
innovation in its culture.
■ A culture of innovation must be present at all levels of the company.
■ Innovation “as a mean of reaching company objectives” must be understood and part
of the strategic and operational plan of the company.
■ Innovation is more then “new technology = new product”. A product is more then only
technology (technology + commercial spin + price)
■ Innovation can be only “internal” and still impact results on the market (i.e. : implementing
new processes or equipment to reduce cost and thus price of a product on the market)
■ Key Factors
■ First step is to work on “integrating” innovation in the culture of a company. From the
executive to the middle management, all must obliged by it.
■ Key to innovation is the collaboration between marketing and engineering.
■ An invention badly launched on the market will never become an innovation.
■ You can have the best technology but without the adequate means to target the right
markets, you will not succeed.
■ Understanding the life cycle of a product is key in taking decisions for success.
■ More and more innovations are “completed with external means” such as partnership
and use of third party technologies.
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4. Implementing an Innovation Process
Stage-Gating Model A structured innovation approach
Discovery
Initial Idea
1 Screening
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
Go to Go to Go to Go to Launch
Business Case Development Test & Validation
Post Launch
Review
2 Gate : A decision point in the product innovation process
Stage : An activity of the product innovation process.
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 4

5. Implementing an Innovation Process
Stage-Gating Model
■ The Stage-Gating process is:
■ a way to formalize and structure the innovation process within a company;
■ a way to reduce financial risk for the companies
■ a way to increase chances of success with the new product
■ a way to have the buy-in of all stakeholders within a company
Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
Post Launch
Review
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6. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Gates Post Launch
Review
■ Gates are positioned at key decision points in the product innovation process
in order to make an assessment of the project.
■ Questions (to be answered are each gate)
■ Quality of execution : Was the previous stage executed with the required
quality level ?
■ Business Rationale : Is the project still attractive on an economic and
business perspective ?
■ Action plan : What is the action plan and the required resources to
perform the next stage ?
■ Decision (to be decide are each gate
■ At each gate the decision can be : Go, Kill, Hold or Recycle
■ Structure
■ Deliverables : What was delivered by the project team following the
previous stage.
■ Criteria : Metrics on which the project is judged for the
Go/Kill/Hold/Recycle decision and projects are prioritized.
■ Output : Result of the gate review (Go/Kill/Hold/Recycle); an action
plan for the next stage; a list of deliverable for the next
gate and a date for the review.
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 6

7. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stages Post Launch
Review
■ A stage is a predefined step in the product innovation process:
1. Discovery
2. Scoping
3. Business Case
4. Development
5. Testing & Validation
6. Launching
7. Post-Launch Review
■ A stage is executed based on the action plan decided at the previous gate.
■ A stage is a set of cross-functional and parallel activities performed by a team
of people from different functional areas in a company.
■ Approach
1. A stage is composed of activities (done by the people from the functional areas)
2. These activities are integrated in a common analysis
3. The result of this analysis is outlined in the deliverables for the next gate.
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8. Implementing an Innovation Process
Stage-Gating Model Discovery
Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stage 0 : Discovery Post Launch
Review
■ The first step in all innovation project is to have an idea on what
to work on.
■ Idea Generation Activities Not all companies have
■ Stimulate creativity formal activities to generate
■ Brainstorming product ideas but ways exist
■ Group Thinking exercise to stimulate creativity…
■ Look internally for ideas
■ Management team
■ R&D Experts and Designers
■ Testing Engineers
■ Manufacturing Technicians
■ Etc.
■ Look outside the company for ideas
■ Customers & Lead Users
■ Suppliers
■ Competitions
■ Products outside the company normal market
■ Etc.
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 8

9. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Gate 1 : Post Launch
Review
This gate is to formally present an idea to the executive
team to get the authorizations to proceed with the first
stage Scoping 1
■ Stage 1 : Scoping
■ Evaluate the idea Scoping
■ The product itself
■ The targeted market
■ The business opportunity
■ What are the product strengths & weaknesses ?
■ What would be competition ?
■ What are they doing ? Their current focus ?
■ In which market ?
■ What could be the threat ?
■ Why should the company invest in this idea ?
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 9

10. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stage 2 : Business Case Post Launch
Review
■ Step 1 : Product Definition and Analysis
■ What creates value for the client ?
■ Market Analysis (size, segmentation, trends, sales channels)
■ Competitive Analysis (Technology Gap, Market Share, Business Strategy) Business
2 Case
■ Technical Concept (PRD)
■ Current Patents Analysis (which patents could have an impact ?)
■ NRE + Manufacturing + Product Launching Costs Estimates
■ Step 2 : Building the Business Case
■ Result of Step 1
■ Legal & Regulatory Requirements
■ Health, Safety and Environment considerations
■ Assumptions used for the analysis & Out-of-bounds criteria
■ What is the window of opportunity ? (how much time do we have ?)
■ Step 3 : Building the project plan
■ Schedule, Budget and required resources
Very difficult stage
■ Step 4 : Feasibility Review based on anticipation and
consuming a lot of resources
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 10

11. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stage 3 : Development (technology & marketing) Post Launch
Review
■ Execute what was decided in the previous stages
■ Focus on the technology and align the marketing
■ Do not forget to develop your manufacturing process
■ Do not forget the Maintenance, Support & Logistic Approach 3 Development
■ Perform specific pre-launch activities
■ Define key milestones for interim decisions/re-alignment
■ Use a structured technology development process
■ V-Model or else
■ Keep it as lean as possible
■ Use people from all areas of the company
■ Engineering, Production, Procurement, Logistics, CM, Etc.
■ Use a structured project management process
■ Project Management Institute (PMI)
Execute what was previously
decided and planned
■ Use prototypes to validate concepts
■ technology and marketing
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 11

12. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stage 4 : Testing & Validation (technology & marketing) Post Launch
Review
■ Evaluate what was done previously
■ The technology itself
■ The manufacturing process & approach
Test &
■ The maintenance and support concept (ILS) 4 Validation
■ Evaluate customer acceptance
■ Use lead user or key customer to get their inputs
■ Fully test/validate what was done
■ Near Testing
■ Test the product including the technology (bugs)
■ Field Testing
■ Have it tested by customers (in a controlled environment)
■ Market Testing (optional)
■ Test your launching plan in a controlled market
■ Only required because you have doubts could jeopardize your strategy by giving
information to your competition !
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 12

13. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stage 5 : Product Launching Post Launch
Review
■ Finalize and execute the marketing strategy
■ Create market awareness
■ Generate market demands (before launch)
■ Announce launching date 5 Launching
■ Finalize collaterals
■ Have adequate and sufficient marketing units to support
market requests
■ Last chance to decide on the price !!!
■ Train the sales channels (internal & external)
■ Train the support team
■ Manufacture your initial production run
■ Based on the anticipated market share
■ A mitigation plan is a good idea if you have more demand
than anticipated.
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 13

14. Implementing an Innovation Process
Stage-Gating Model Discovery
1
Business Test &
Scoping 2 3 Development 4 5 Launching
Case Validation
■ Stage 6 : Post Launch Review Post Launch
Review
■ Review if the project/product objectives have been reached in
order to have a continuous improvement approach.
■ Objectives
■ To instill a culture of accountability for results Post Launch
■ Use metrics for all team members Review
■ To have performance metrics measuring how well a new product
project performed
■ Are the profits on target ?
■ Was it launched on time ?
■ To build-in learning and improvement
■ Focus on fixing the cause rather than putting a band-aid on the
symptom, or worse, punishing the team.
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15. Implementing an Innovation Process
Stage-Gating Model Adaptation & Flexibility
Business Test &
A Scoping 2 3 Development 4 5 Launching
Case Validation
Scoping & Development Post Launch
B Discovery 1 Business Case 3 & Testing 5 Launching
Review
Scoping & Development,
C Business Case 3 Testing & Launch
A Major New Product Development
B Improvements & Modifications
C Sales Forces & Marketing Requests
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16. Implementing an Innovation Process
References
■ Winning at New Products: Accelerating the Process from Idea to Launch
■ Author: Robert G. Cooper
■ Product Innovation and Technology Strategy
■ Author: Robert G. Cooper & Scott J. Edgett
■ Strategic Business Planning
■ Author: Geoff Linton
■ Diffusion of Innovations
Authors: Everett M. Rogers
This document may contain information which is confidential and can not be reproduced --- Guy Laliberté, 2010 16