Transcript Slide 1

Henkel’s Stage-Gate Process
(Portugal Division)
NYU, New Products & Services Development
March 25th, 2006
MCM
Henkel’s Vision
Henkel
is a leader with
brands and technologies
that make people's lives
easier, better and more beautiful.
Three Areas of Competence
Home
Care
Personal
Care
Adhesives, Sealants
& Surface Treatment
Consumer
Industry
Quality with Brands & Technologies
Henkel in Portugal
 We do not develop new products
But...
 We are able to launch in Portugal
NEW brands or products that the
company owns.
The Stage-Gate Process
Discovery
Gate
1
Stage 1
Scoping
Idea Screen
Go / Kill
Gate
2
Second
Screen
Go / Kill
Stage 2
Building the
Business Case
Gate
3
Third
Screen
Go / Kill
Stage 3
Testing
Gate
4
Forth
Screen
Go / Kill
Stage 4
Launch
Post
Launch
Review
The Stage-Gate Process
Discovery / Ideation
Gate 1 – Idea Screen
Pre-work designed to discover and uncover
opportunities and generate ideas
Go/Kill decision point
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Promote internal campaign for ideas
Create a “bank Idea”
Assign a team member to manage
Ideas generated
This gate is a “gentle screen” and amounts to subjecting the project
to a handful of key “must-meet” and “should-meet” criteria.
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Discovery
Gate
1
• Bank idea (Ideas Generation)
- The Product Manager manages the group
Idea Screen
- PM & Marketing Manager
Go / Kill
Is the idea aligned with the company’s mission, goals and strategy?
Is the market attractive?
Does the idea offer competitive advantage over competitors?
Is the idea part of the product portfolio of the company?
Does the company have expertise to manufacture the product
(technical feasibility)?
Does the product fit with company’s policies?
Are there any killer variable (environment issue / legislative action)?
The Stage-Gate Process
Stage 1 - Scooping
Gate 2 – Second Screen
A quick, preliminary investigation of the projects – largely desk
research
Go/Kill decision point
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The Idea is reevaluated in the light of the new information
obtained in Stage 1.
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Preliminary market assessment to determine market size,
market potential and market acceptance.
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Internet search, library search, internal reports,
customers, focus groups
Preliminary technical assessment to establish product
objectives & feasibility
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Quick and preliminary in/house appraisal of the
proposed product
Preliminary business & financial assessment to map out
strategic & competitive rationale
Discovery
Gate
1
• Bank idea (Ideas Generation)
- The Product Manager manages the group
Idea Screen
- PM & Marketing Manager
Go / Kill
Stage 1
Scoping
Preliminary
Assessment:
• Market
• Technical
• Financial
For the 3
“winners”
Gate
2
Second
Screen
- MKT
Manager &
Country
Manager
Go / Kill
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Does the product respond to a customer need?
Is the competition moving to the same direction?
Is the company capable of manufacturing the product?
When would be the payback period?
The Stage-Gate Process
Stage 2 – Building the Business Case
Gate 3 – Third Screen
A much more detailed investigation involving primary research –
both market an technical – leading to a business case,
including product and project definition, project justification
and a project plan. It is the “critical homework stage”!
Go/Kill decision point
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Define the “winning” new product (concept and positioning):
- Target market
- Benefits
- Desired features, attributes, requirements and especifications
Competitive Analysis
- Determine strength and weakeness
Detailed Technical Appraisal
- Manufacturability / cost to manufacture
- Detailed legal, patent, and regulatory assessment.
- Investment review
Business and financial analysis
Discovery
Gate
1
• Bank idea (Ideas Generation)
- The Product Manager manages the group
Idea Screen
- PM & Marketing Manager
Go / Kill
Stage 1
Scoping
Preliminary
Assessment:
• Market
• Technical
• Financial
For the 3
“winners”
Gate
2
Second
Screen
- MKT
Manager &
Country
Manager
Go / Kill
Stage 2
Building the
Business Case
Detailed
Investigation for
the “winner idea”
Gate
3
Third
Screen
- Country
Manager &
Intl. SBU
Manager
Go / Kill
This is the last point at which the project can be killed before
entering heavy spending. Here the full project team is
design and it must be headed by a leader with
authority!
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Is the marketing still attractive to justify the investment?
Can the customer’s inputs be translated into technically and
economically feasible solution?
Is the company responding to a competitor’s weakness?
The Stage-Gate Process
Stage 3 – Testing and Validation
Gate 4 – Forth Screen
Tests or trials in the market-place, lab, and plant to verify and
validate the proposed new produxt and its marketing and
production/operations
Go/Kill decision point
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Carry out an extensive validation of the entire project
Implement in-house product tests
User or field trials of the product
Trial, limited, or pilot production
Pretest market, test market or trial sell
Reviewed business and financial analysis
Discovery
Gate
1
This final gates open the door to full commercialization – market
launch and full production or operations start-up. It is the
final point at which the project can still be killed.
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Was the testing & validation activities properly executed?
Were the results from the Testing and validation satisfactory?
Were required improvements implemented in the product?
Is the expected financial return according to the plan?
Are the operations and marketing plans reviewed and approved
for implementation?
• Bank idea (Ideas Generation)
- The Product Manager manages the group
Idea Screen
- PM & Marketing Manager
Go / Kill
Stage 1
Scoping
Preliminary
Assessment:
• Market
• Technical
• Financial
For the 3
“winners”
Gate
2
Second
Screen
- MKT
Manager &
Country
Manager
Go / Kill
Stage 2
Building the
Business Case
Detailed
Investigation for
the “winner idea”
Gate
3
Stage 3
Third
Screen
- Country
Manager &
Intl. SBU
Manager
Testing
Test the
product in 1
supermarket
chain for 1
month
Go / Kill
Gate
4
Forth
Screen
- MKT
Manager &
Sales
Manager
Go / Kill
The Stage-Gate Process
Stage 4 – Launch
Post Launch Review
Commercialization – beginning of full operations
or production, marketing, and selling
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Review product launch performance
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Implement of the marketing launch plan and the
production or operations plan
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Discovery
Gate
1
Market acceptance
Ability to support technical product
Market trends
Finances
Revise financial review with updated information
- Review sales & profits
Review strengths & weakness
- Identify successful actions
- Identify mistakes/unsuccessful actions
Evaluate what changes (lessons learned) need to be made for future
launches
Evaluate whether launched met criteria and fulfilled mission, goals &
strategy of corporation & department
• Bank idea (Ideas Generation)
- The Product Manager manages the group
Idea Screen
- PM & Marketing Manager
Go / Kill
Stage 1
Scoping
Preliminary
Assessment:
• Market
• Technical
• Financial
For the 3
“winners”
Gate
2
Second
Screen
- MKT
Manager &
Country
Manager
Go / Kill
Stage 2
Building the
Business Case
Detailed
Investigation for
the “winner idea”
Gate
3
Third
Screen
- Country
Manager &
Intl. SBU
Manager
Go / Kill
Stage 3
Testing
Test the
product in 1
supermarket
chain for 1
month
Gate
4
Forth
Screen
- MKT
Manager &
Sales
Manager
Go / Kill
Stage 4
Launch
Post
Launch
Review
New Product and Services Development
Conclusions:
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The Stage-Gate is a plan that focuses on quality of execution, builds in the up-front homework, is strongly
market-oriented and is backed by appropriate resources
This model brings discipline to the new product process
It is relatively simple and easy to understand and communicate.
The process provides a road map to facilitate the project and it defines the project leader’s objectives and
tasks (include senior executives from the beginning)
Increase investment as risk decreases
Check acceptance with customer during the whole process
It gives you the opportunity to “Win by a nose!”
Discovery
Gate
1
• Bank idea (Ideas Generation)
- The Product Manager manages the group
Idea Screen
- PM & Marketing Manager
Go / Kill
Stage 1
Scoping
Preliminary
Assessment:
• Market
• Technical
• Financial
For the 3
“winners”
Gate
2
Second
Screen
- MKT
Manager &
Country
Manager
Go / Kill
Stage 2
Building the
Business Case
Detailed
Investigation for
the “winner idea”
Gate
3
Third
Screen
- Country
Manager &
Intl. SBU
Manager
Go / Kill
Stage 3
Testing
Test the
product in 1
supermarket
chain for 1
month
Gate
4
Forth
Screen
- MKT
Manager &
Sales
Manager
Go / Kill
Stage 4
Launch
Post
Launch
Review
ANNEXES - The Stage-Gate Process: The Development Stage
Stage 3 – Development
Gate 4 – Forth Screen
The actual detailed design and development of the new
product, and the design of the operations or
productuction process
Go/Kill decision point
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Product development in parallel with corporate
marketing & technical product development
- Rapid prototype, working model, or first prototype
are taking to the customer for feedback /
assess.
- Continue market analysis
- Map out a market launch plan involving corporate
marketing and technical area.
Undertake lab tests, in-house tests and alpha tests
Revise financial analysis with update information
Assess legal issues (approval patents, regulations)
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Is the developed product consistent with the original
quality definition specified at Gate 3?
Does the product continue to be attractive to the
market?
Is the product ready to move forward to Testing?
Are revised financials still with Budget?
Are the marketing and operation plans reviewed for
probable future execution?