2. New Product Process
Portfolio Management & Stage-Gate Model
STAGE-GATE MODEL
Business Strategy
and New Product Gate
Strategy
Portfolio Review:
Stage
This meeting
• identifies strategic
imperatives Gate
• checks project
priorities Stage
• checks for portfolio
List of projects: Active and On-Hold
balance Total Project Scores from Gates
• makes adjustments Gate
to the gating model
Stage
Strategic Imperatives(Must Do Now)
Prioritization Adjustments
Gate Adjustments
Review

4. Product Delivery Process
DECISION ON
SECOND BUSINESS
INITIAL POST-DEV
SCREEN CASE
SCREEN STAGE STAGE STAGE REVIEW
(Feasibility) (Money Gate)
1 1 2 2 3 3 4
GATE GATE GATE GATE
PRELIMINARY DETAILED DEVELOPMENT
INVESTIGATION INVESTIGATION
(Build Business Case)
STAGE
PRE-LAUNCH
BUSINESS 4
ANALYSIS
STAGE TESTING &
POST 5 VALIDATION
IMPLEMENTATION
GATE
REVIEW 5
FULL PRODUCTION
& LAUNCH

6. Goals
#1 Quality of Execution
 focus on completeness: key activities central to
success are carried out
 focus on quality: execution of activities is
proficient
 focus on the important: devote attention &
resources to pivotal and potentially weak steps
(up-front and market-oriented activities)

7. Goals
#2 Sharper Focus, Project Prioritization
 focus on funnels, not tunnels: strong gates weed
out weak projects
 focus on using resources efficiently: resources are
directed toward the truly meritorious projects

8. Goals
#3 A Strong Market Orientation
Key marketing activities:
 Preliminary market assessment
 Market research to determine user needs and
wants
 Competitive analysis
 Value-in-use analysis
 Concept testing
 Customer reaction & feedback
 User tests & field trials
 Test market or trial sell
 Market Launch based on marketing plan

9. Goals
#4 Fact-Based Product Definition
 up-front homework: defines the product and builds
the business case for Development
 fully defined products: lead to strong first steps
into becoming full-fledged development projects
 strategic product platforms: creates
comprehensive product links to insure long-term
idea pipelines

10. Goals
#5 Fast-Paced Parallel Processing
 relay race approach ends: the series approach
moves to the rugby match style of concurrently
occurring activities
 benefits of team work:
• more work gets done in an elapsed time period
• less chance of an activity being overlooked
• activities are designed to feed each other
• process becomes cross-functional and
multidisciplinary

11. Goals
#6 True Cross-Functional Team Approach
Key ingredients:
 Committed team players
 Team leader accountable for the project
 Leader w/formal authority
 Fluid team structure, w/new members added or
dropped as work requirements demand-some may
not be involved in all
 Small, core group of responsible and accountable
team players from beginning to end

12. Goals
#7 Products with Competitive Advantage
Defined as:
 Differentiated products
 Unique benefits
 Superior value for the customer
 Product superiority should be built in at
every opportunity, questioned at every Gate,
and a key deliverable for Go/Kill reviews

13. Goals
#8 A Fast-Paced and Flexible Process
 elimination of time wasters: work that adds no
value to the new product process only slows it
down
 different projects have different needs: the risks
and nature of different projects should be
considered - some will move faster than others

15. Definitions
Stage
 consists of a set of parallel activities by people
from different functional groups
 designed to gather information needed to advance
project to next gate
 each is cross-functional and owned by no single
functional group
 designed to help manage risk by driving
uncertainties down at each successive stage
 in general, each stage costs more than the
preceding one due to successive commitment to
launch

16. Definitions
Gate
 have a set of required “deliverables” the project
leader must present to the gate
 have a set of “criteria or hurdles” that each project
is judged on
 have a decision or “output” - Go/Kill/Hold/Recycle
DELIVERABLES OUTPUTS
CRITERIA

17. Definitions
Gatekeepers
 management team of decision makers and
resource owners responsible for facilitating the
rapid commercialization of selected projects
 TI - Managers; Newspaper - Directors after Gate 2
or 3 forward
Deliverables
 a prescribed list of items - results of completed
actions - the Project leader must present to the gate
 based on a standard menu for each gate & are
decided at the output of the previous gate

18. Definitions
Criteria/Hurdles
 a predetermined set of hurdles or questions that
the project is judged on to make Go/Kill and
prioritization decisions
 can include a list of must-meet or knockout
questions to weed out misfit projects quickly
 e.g., Does the project fit the corporate strategy?
Is there consumer appeal - that is, clear consumer
need and expectation of consumer benefit? Is
manufacturing or procurement feasible?

19. Definitions
Outputs
 a decision (Go/Kill/Hold/Recycle)
 an approved action plan for the next stage
 a list of deliverables
 date for the next gate
Action plan
 estimate of people required
 estimated money and person-days
 budget
 time schedule

21. Idea Generation
Keys to success
 focal point for new ideas: assign the responsibility
of generating and handling ideas to a single person
 identify the sources: where do good ideas come
from - make a list of possible sources and follow
up
 grease the path: create events or opportunities for
idea generation - kits, contests, conversations
 capture & handling system: allow for easy
submission points and forms, with a repository for
ideas not accepted

22. Idea Capture & Handling
Idea Generation
FEEDBACK TO SUBMITTER
STAGE
FOCAL
PERSON
1 1
GATE
IDEAS INITIAL
SCREEN
PERIODIC OTHERS IN
REVIEW & UP- IDEA VAULT OR BANK COMPANY
DATE
- IDEAS ON HOLD
- “DEAD” IDEAS

23. Idea Capture & Handling
Idea Generation
SUBMISSION DATABASE
(Excel Spreadsheet online)
- NEW IDEAS
www.tribuneinteractive.net/ideaorama

24. Gate 1
Initial Screen
Characteristics
 project is born: first decision to commit resources
to the project
 “gentle screen”: project is subjected to key must-
meet and should-meet criteria
 financials: financial criteria are typically not part of
this first screen
 checklists & scoring: Yes/No criteria for the must-
meet, and a weighted rating scale for should-meet
criteria
INITIAL
SCREEN
STAGE
1 1
GATE
PRELIMINARY
INVESTIGATION

25. Gate 1
Initial Screen
Criteria/Hurdles
 A single “NO” kills the project:
• Strategic fit - does it fit w/in a market or functionality area
that’s one of strategic focus?
• Market attractiveness - are the market size, growth, and
opportunities attractive?
• Technical feasibility - is there the likelihood that the
product can be made & produced?
• Killer variables - do no known killer variables exist (e.g.,
legislative action)
INITIAL
SCREEN
STAGE
1 1
GATE
PRELIMINARY
INVESTIGATION

26. Stage 1
Preliminary Investigation
Objective - Determine the project’s technical and
marketplace merits
 Activities (primarily secondary research)
• Preliminary market assessment - scoping of the marketplace to
assess the existence of a market, probable size, and market
acceptance
• Preliminary technical assessment - appraisal to propose a
solution, a probable route, and assess costs, time and risk
• Preliminary business assessment - quick financial assessment
based on estimates of sales, costs, and investment required
(payback calculation)
INITIAL SECOND
SCREEN SCREEN
STAGE
1 1 2
GATE GATE
PRELIMINARY
INVESTIGATION

27. Gate 2
“Feasibility”
Characteristics
 repeat of Gate 1: project is reevaluated in light of
the “deliverables” from Stage 1
 hurdles using Hoeschst’s scoring model: the
addition of more complex metrics can help
evaluate projects in Gates 2 & 3
 financial return assessed: this is quick and simple
financial calculation meant only to give a general
understanding of payback period, costs, etc.
SECOND
SCREEN STAGE
STAGE
1 2 2
GATE
PRELIMINARY DETAILED
INVESTIGATION INVESTIGATION

28. Gate 2
“Feasibility”
Criteria/Hurdles
 Strategy & Priorities
• Does the project fit the corporate strategy? (M)
• Does the project fit the category strategy? (M)
• Does the project fit the operating unit strategy? (M)
 The Consumer
• Is there consumer appeal (that is, clear consumer need and
expectation of consumer benefit)? (S)
• Is the market/category of an attractive size and with growth potential?
(M)
• Does the concept have competitive advantage? (M)
• Is there a clear and viable
marketing proposition? (S)
SECOND
SCREEN STAGE
STAGE
1 2 2
GATE
PRELIMINARY DETAILED
INVESTIGATION INVESTIGATION

29. Gate 2
“Feasibility”
Criteria/Hurdles (cont’d)
 The Sale
• Are there existing company sales channels? (M)
• Does the product have advertiser appeal and fit? (S)
 Technical
• Is development or procurement feasible? (S)
 Editorial
• Are there any serious issues - legal? (M)
• Issues - ethics? (M)
SECOND
SCREEN STAGE
STAGE
1 2 2
GATE
PRELIMINARY DETAILED
INVESTIGATION INVESTIGATION

30. Gate 2
“Feasibility”
Criteria/Hurdles (cont’d)
 Financial
• Does this project have a PMA/DMA/national potential? (S)
• Are financial projections in line with financial criteria? (S)
 Other
• Does the product have multi-market expansion potential? (S)
M= must-meet
S = should-meet (Hoescht scale)
SECOND
SCREEN STAGE
STAGE
1 2 2
GATE
PRELIMINARY DETAILED
INVESTIGATION INVESTIGATION

31. Stage 2
Detailed Investigation
Objective - Build the business case
 Activities
• User needs-and-wants studies help develop a new product
definition
• Value-in-use studies determine what economic value the
product will bring to the advertiser/customer (customer use
system, current solution, cost drivers, etc.)
• Competitive analysis that includes direct and indirect
competitors: their products, strengths & weaknesses,
business performance, etc.
• Concept testing in prototype form
• Detailed technical assessment
• Operations appraisal
• Financial analysis
SECOND DECISION ON
SCREEN STAGE BUSINESS CASE
2 2 3
GATE
DETAILED
INVESTIGATION

32. Stage 2
Detailed Investigation
Deliverables - Business Case should answer:
 Product definition - what is the product, who will
use it and who will it be sold to?
• Specification of the target market
• Description of the product concept and benefits
• Positioning strategy including price point
• Product features, attributes, requirements, and high-level
specs (“must have” and “would like”)
 Project justification - why invest in this project?
• Strategic rationale, financial analysis, and business
risk assessment
 Project plan -
how and how long?
SECOND DECISION ON
SCREEN STAGE BUSINESS CASE
2 2 3
GATE
DETAILED
INVESTIGATION

33. Stage 2
Detailed Investigation
Sample Deliverables to Gate 3
 Strategic fit confirmed
 Detailed market assessment
 Detailed operations/technical assessment
 Resource constraints
 Detailed financial assessment
 Detailed legal and ethical issues assessment
 Potential killer variables addressed
 Critical success factors are understood and feasible to achieve
 Recommendation to proceed, hold or kill
 Detailed biz & project plans
 High-level plan for
remaining stages
A complete Deliverables List for each Gate can be found at:
www.tribuneinteractive.net/stagegate
Choose: DeliverablesList.doc SECOND DECISION ON
SCREEN STAGE BUSINESS CASE
2 2 3
GATE
DETAILED
INVESTIGATION

34. Gate 3
“Go-to-Development”
Characteristics
 money gate: final gate prior to the Development
stage - the last point at which the project can be
killed before entering heavy spending
 product definition sign-off: what the product is to
become and how it fits into the product portfolio
are finalized
 gatekeepers: top-level management
DECISION ON
STAGE BUSINESS CASE STAGE
2 3 3
DETAILED DEVELOPMENT
INVESTIGATION

35. Gate 3
“Go-to-Development”
Criteria/Hurdles
 Similar to Gate 2, however, are more rigorously applied, using
more quantitative methods if necessary in addition to “must-
meet” and “should-meet” standards outlined in Gate 2
 The list of hurdles for this gate should be determined by the
business unit based on a criteria that allows the gatekeepers
to make an informed allocation of funds to Stage 3
(Development)
DECISION ON
STAGE BUSINESS CASE STAGE
2 3 3
DETAILED DEVELOPMENT
INVESTIGATION

36. Stage 3
Development
Characteristics
 Deliverable is a “lab-tested” product, w/full
production & marketing plans being developed
here
 Development plan includes
• chronological list of activities, actions, and tasks
(project management)
• a timeline or schedule showing beginning & end
points, and milestones
• resources required for each task and assigned
responsibility
POST
DECISION ON DEVELOPMENT
BUSINESS CASE STAGE REVIEW
3 3 4
DEVELOPMENT

37. Gate 4
Post Development Review
Characteristics
 A check on the progress and continued
attractiveness of the product and project
 Question switches from “Should we invest in the
project?” to “How well is the project unfolding - is
it on track?”
 Go/Kill criteria/hurdles in both Gates 4 & 5 should
reflect this shift
 Test or validation plans and capital expenditures
should be approved here
 Marketing and operations
plans are reviewed for
future execution POST
DEVELOPMENT
STAGE REVIEW STAGE
3 4 4
DEVELOPMENT TESTING &
VALIDATION

38. Stage 4
Testing and Validation
Characteristics
 Tests and validates the entire commercial viability
of the project: the product itself, the production
process, customer acceptance, and the economics
• in-house prototype testing
• user tests or field trials
• limited pilot production
• financial revisions
• mini-launch
PRE-
POST COMMERCIALIZAT
DEVELOPMENT ION BUSINESS
REVIEW STAGE ANALYSIS
4 4 5
TESTING &
VALIDATION

39. Gate 5
Pre-launch Business Analysis
Characteristics
 Scrutinizes the quality of the activities at the
testing and validation stage and their results
 Criteria/hurdles tend to focus on expected financial
returns and appropriateness of launch and
operations start-up plans
 Operations and marketing plans reviewed and
approved
 Life Cycle plan anticipated
PRE-
COMMERCIALIZATION
BUSINESS ANALYSIS
STAGE STAGE
4 5 5
POST DEVELOPMENT FULL PRODUCTION
REVIEW & LAUNCH

40. Stage 5
Full Production & Market Launch
Characteristics
 Implementation of both the marketing launch plan and
production or operations plans
 Post-Launch monitoring plan kicks in with performance
on key metrics being tracked
 Elements of the long-term Life Cycle Plan begin to be
implemented
(e.g., improvements and variations)
POST
PRE-
IMPLEMENTATION
COMMERCIALIZATION
BUSINESS ANALYSIS
REVIEW
STAGE
5 5
Production &
Market Launch

41. Post Implementation Review
Characteristics
 After about 6 to 18 months the product project must
be terminated - product becomes part of the
company’s portfolio
 Product’s performance is tracked, analyzed, and
assessed - in terms of costs, revenue against
projections, profits, timing against other products,
etc.
 Project team and the leader remain accountable for
the success of the project through this post-Launch
period
POST
IMPLEMENTATION
REVIEW
STAGE
5
TESTING &
VALIDATION