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New Product Development: Process

Lassen Scientific

Stage Systems
The CARE™ Process
Description and Testing
Go/Kill

Stage Systems

TEC expert Nick Webb likens the new product development process to the diagnostic medical pathway employed by physicians: "When developing a product, start with the least invasive and least expensive option. Don't design overly complex models and prototypes until the product demonstrates it's worthy of this kind of organizational resource."

The traditional stages of development, broadly defined, include (1) exploration; (2) product description; (3) development; (4) testing; and (5) launch. More specific elements include:

Marketing opportunity identification
Strategic alignment
Concept development or new product idea generation
Competitive positioning
Resource identification
Design-to-cost analysis
Manufacturing development
Commercialization

According to fellow TEC expert Mitch Goozé, "There are no predetermined criteria or specific number of stages for every new product. In most cases, companies set up what are called 'gates' -- points at which a significant incremental investment of resources has to occur in order to go forward."

A product development process that takes place in phases -- typically called "stage-gate process" -- was originally designed by Dr. Robert G. Cooper in 1986. The stage-gate system defines specific phases and tasks that the cross-functional team must meet and complete in order to move through the product development process.

"A stage-gate system is used, often by larger companies, as a road-map for advancing the process," Goozé says. "Each stage consists of a set of stipulated periods, with an 'entry point' that serves both as quality control and as a checkpoint. If certain criteria haven't been met at the entry to each stage, the process can't go forward."

Multistage systems vary from one company to the next, but they frequently incorporate a template for meticulous reviews at each stage. At each "gate," the project team is charged with reevaluating the product and determining whether it should progress to the next level.

"Stage-gate systems generally benefit companies larger in scale than TEC-sized companies," Webb observes. "Smaller companies find the process overly bureaucratic and paper-intensive."

Both Webb and Goozé feel more efficient methods exist for smaller companies to pursue in the development of new products. Says Webb: "A good way of moving forward is by modeling the idea, gathering ever more market data, measuring production costs and, as much as possible, getting input from key customers." (See "The Voice of the Customer" in Additional Resources at right)

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Additional Resources

Below are links to more best practices as defined by our expert panel:

New Product Development: An Overview
Where Do New Ideas Come From?
The Voice of the Customer
New Product Strategy
New Product Development Process
New Product Launch
The CEO and New Product Development
The New Product Development Team
New Product Development Mistakes

 

More Testimonials

Lassen Innovation's CEO Nicholas J. Webb was engaged by our firm to help us with our product line strategy, as a direct result of his contributions we significantly reduced product cost, gained captive control over our quality and manufacturing and as a result significantly increased our company's sales and market share. Additionally Nicholas invented our market-leading product the "Flex Plug". What started out as a six-month engagement turned into a decade-long relationship that was directly responsible for driving our growth."
Curtis Freeman
President and CEO
Eagle Vision
Retired

"Lassen took our product concept from a vague idea to a product that will compete favorably with a highly entrenched competitor in a 100 million dollar market. The bottom line is they significantly exceeded our expectations."
Victor Kasatshko, CEO
LoungAir International, LLC

All rights reserved, Copyright 1995-2008, Lassen Innovation is a wholly owned subsidiary of Lassen Scientific, Inc.