Product Development Process

Typical Problems
Product development processes often lack formal methods for consideration, resourcing, documenting and management
Lack of a formalized process limits perspective of where a product stands in its development cycle
Resource allocation may not reflect reality of where product is relative to development cycle Product development and delivery schedule is difficult to validate without defined acceptance criteria

Solution
Implement a gated approach to product development
Allows for a formal stage by stage review of product as it goes through an identified product lifecycle Identifies decision makers and acceptance criteria necessary for advancement through product development funnel Minimizes impact to schedule while focusing cross functional team on primary objective

Obtain organizational consensus in implementing process

Gate/Stage Business Generation Model

Initial Screening Second Screening Business Case Decision

Gate 1

Stage 1

Gate 2

Stage 2

Gate 3

Stage 3

Product Concept

No-Go

Preliminary Investigation

No-Go

Detailed Investigation

No-Go

Market Assessment & Business Plan

Post-Planning Review

Pre-Commercialization Business Analysis

Cash Flow Generation

Gate 4

Stage 4

Gate 5

Stage 5

No-Go

Prototype Testing & Validation

No-Go

Secure Funding & Launch Business

* As defined in Product Leadership by Robert Cooper

Gate/Stage Business Generation: An Idea Funnel

Product Concept

Initial Screening

Second Screening

Business Case Decision Stage 2 Detailed Investigation Gate 3 Stage 3 Market Assessment & Business Plan

Gate 1

Stage 1 Preliminary Investigation

Gate 2

No-Go

No-Go

No-Go

Post-Planning Review Gate 4 Stage 4

Pre-Commercialization Business Analysis Gate 5 Stage 5

No-Go

Prototype Testing & Validation

No-Go

Secure Funding & Launch Business

Cash Flow Generation

Gate/Stage Business Generation: An Idea Funnel

Product Concept

Initial Screening

Second Screening

Business Case Decision Stage 2 Detailed Investigation Gate 3 Stage 3 Market Assessment & Business Plan

Gate 1

Stage 1 Preliminary Investigation

Gate 2

No-Go

No-Go

No-Go

Post-Planning Review Gate 4 Stage 4

Pre-Commercialization Business Analysis Gate 5 Stage 5

No-Go

Prototype Testing & Validation

No-Go

Secure Funding & Launch Business

Cash Flow Generation

Gates
Project review and decision meetings
Go/Kill decision points in new product process
Projects are evaluated by management Resources are identified and allocated Poorly defined or validated projects are killed

Stage 1
Preliminary Investigation or Concept Phase
A quick investigation and scoping of any number of potential projects. Based largely on desk research. Continual process for feeding product and project development funnel

Stage 2
Detailed Investigation (Business Case) a more detailed investigation where market analysis, product definition, project justification, and project plan are proposed

Stage 3
Development Stage actual design and development of product take place, including internal verification and testing of products features and functionality
Complete production and marketing plans are developed in this stage Defines and develops the various individual components that make up the final product
Hardware, Software, Interface, Packaging, etc.

Stage 4
Testing and Validation validate all commercial facets of the product and project
Includes tests and trials in the marketplace, lab and plant.

Stage 5
Full Production and Market Launch full commercialization stage
Marketing, production/operations, distribution, Quality Assurance, and post-launch monitoring and sales plans are executed

Stage 6
Life Cycle Management / Post Implementation Review
Validates products market success against business plan expectations Identifies threats to products continued production and sale Considers ongoing improvements