How does a stage-gate model cut product-launch failures?
In today’s fast-paced and competitive business landscape, product launches are a crucial aspect of a company’s growth and success. However, the reality is that many product launches fail to meet expectations, resulting in significant financial losses and damage to a company’s reputation. According to a study by Harvard Business Review, up to 80% of new products fail to achieve their projected market share. This staggering statistic highlights the need for a more structured and disciplined approach to product development and launch.
This is where the stage-gate model comes into play. Developed by Dr. Robert Cooper, a renowned expert in product innovation, the stage-gate model is a widely used framework that helps organizations to systematically develop and launch new products. The model divides the development process into a series of structured phases, each with a specific set of activities and deliverables. These phases include idea, scoping, feasibility, development, validation, and launch, with a go/no-go review at the end of each phase.
The stage-gate model is designed to prevent teams from over-investing in weak ideas and forces early market checks, risk analysis, and resource alignment. By doing so, organizations can de-risk launches, speed up execution, and ensure that only validated concepts reach the market. In this blog post, we will delve into the details of the stage-gate model and explore how it can help organizations to cut product-launch failures.
The Five Phases of the Stage-Gate Model
The stage-gate model consists of five phases, each with a specific set of activities and deliverables. These phases are designed to be sequential, with each phase building on the previous one. The five phases are:
- Idea Phase: This is the initial phase where ideas are generated and screened. The goal of this phase is to identify potential opportunities and to determine whether they are worth pursuing. During this phase, teams will typically conduct market research, analyze customer needs, and assess the competitive landscape.
- Scoping Phase: In this phase, the idea is further developed and defined. The goal of this phase is to determine the scope of the project and to identify the key stakeholders. During this phase, teams will typically conduct a feasibility study, develop a business case, and create a project plan.
- Feasibility Phase: This phase is designed to assess the technical and financial feasibility of the project. The goal of this phase is to determine whether the project is viable and to identify any potential risks or roadblocks. During this phase, teams will typically conduct a detailed technical analysis, develop a financial model, and assess the regulatory environment.
- Development Phase: In this phase, the product is developed and tested. The goal of this phase is to create a prototype or a minimum viable product (MVP) that can be tested with customers. During this phase, teams will typically conduct product design, develop a prototype, and test the product with customers.
- Validation Phase: This phase is designed to validate the product with customers and to refine the product based on customer feedback. The goal of this phase is to determine whether the product meets customer needs and to identify any areas for improvement. During this phase, teams will typically conduct customer testing, gather feedback, and refine the product.
The Gate Review Process
At the end of each phase, a gate review is conducted to determine whether the project should proceed to the next phase. The gate review process is a critical component of the stage-gate model, as it ensures that only projects that meet specific criteria are allowed to proceed. The gate review process typically involves a cross-functional team that assesses the project’s progress, risks, and potential return on investment.
The gate review process is designed to be rigorous and objective, with a focus on ensuring that the project meets specific criteria. These criteria may include:
- Market demand and customer needs
- Technical feasibility and risks
- Financial viability and return on investment
- Competitive landscape and market positioning
- Regulatory compliance and risks
Benefits of the Stage-Gate Model
The stage-gate model offers a number of benefits to organizations, including:
- Reduced product-launch failures: By conducting rigorous gate reviews and assessing the project’s progress, risks, and potential return on investment, organizations can reduce the risk of product-launch failures.
- Improved resource allocation: The stage-gate model ensures that resources are allocated to projects that have a high potential for success, rather than spreading resources too thinly across multiple projects.
- Faster time-to-market: The stage-gate model enables organizations to develop and launch products more quickly, as it streamlines the development process and reduces the risk of delays and setbacks.
- Increased customer satisfaction: By conducting customer testing and gathering feedback, organizations can ensure that their products meet customer needs and expectations.
Conclusion
In conclusion, the stage-gate model is a powerful framework that can help organizations to cut product-launch failures. By dividing the development process into structured phases, with a go/no-go review at the end of each phase, organizations can de-risk launches, speed up execution, and ensure that only validated concepts reach the market. The stage-gate model offers a number of benefits, including reduced product-launch failures, improved resource allocation, faster time-to-market, and increased customer satisfaction. By adopting the stage-gate model, organizations can improve their product development and launch processes, and increase their chances of success in today’s competitive business landscape.
News Source: https://www.growthjockey.com/blogs/stage-gate-model
About the Author
