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