New Product Development Framework

Recall Stage gate model

•Stage is where work is done, Gate is where quality is checked

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•Each gate comprises a set of deliverables that the ‘owner’ brings to the gate. Senior managers will then assess progress against these deliverables.

•Each stage comprises parallel related tasks e.g. building prototype, initial engagement with customers

Gate 1 - Initial screen

•Gentle screen – decision to commit some resources

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•Must and should meet criteria for the company e.g.

•Strategic alignment

•Project feasibility

•Magnitude of opportunity

•Competitive advantage

•Synergy with core business

•Market attractiveness

Stage 1 - Preliminary Assessment

Inexpensive stage

•Library search, engagement with key users, focus groups, concept test

•Technical assessment – development and manufacturing feasibility

Purpose

•Determine market size, potential and manufacturing feasibility

•Determine ‘must meet’ and ‘should meet’ criteria

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Gate 2

•Repeat of Gate 1 but based on new information from stage 1.

•Review customer wish list (must and should meet)

Stage 2 - Definition

Final stage before product development (significant spending)

•Market research

•Competitor analysis

•Detailed IP analysis

•Detailed financial analysis (cash flow, Lecture 4)

Detailed technical appraisal

•Are customer needs technically and economically feasible?

•Preliminary design/laboratory work

Gate 3 Decision on business case

Review ‘must meet’ and ‘should meet’ criteria

Quality checking work performed in Stage 2

Review financial analysis

Define Target Product Profile (performance specifications)

Stage 3

Development of the product

Detailed test, marketing and operations plan

Update financial analysis

Review IP

Gate 4 - Post development review

Check progress and quality of work

Review financial analysis

Review future marketing plans

Stage 4 Validation

•In-house product tests

•User trials

•Pilot production

•Pretest market or trial sell

Gate 5

•Final point to kill off project

•Focus on quality of validation stage

•Review operating and marketing plans

Stage 5 Commercialisation

•Implement product launch plan