INNOVATION AND NEW PRODUCT DEVELOPMENT Harvard Case Solution & Analysis

INNOVATION AND NEW PRODUCT DEVELOPMENT

Question no 1

Many companies (including LEGO) are relying on the so-called stage-gate processes to manage innovation projects. Please describe the concept of a stage-gate process. Moreover, please discuss for what type of innovation a stage-gate process is likely to yield satisfactory results and for what type of innovation it might not be ideal?

Answer to question no 1

The term stage gate process is also known as phase gate process. This is a project management technique in which a project or a task is divided into phases or stages, separated by the gates. The further movement of the process is decided by the manger or a steering committee at each gate.

The decision of the managersor the committee is based on the information available at the time, which includes the business case, risk analysis and availability of necessary resources. The necessary resources can be the money and the personnel with correct competencies.

There are five phases in the stage gate process. The five phases are as follows.

1. Scoping
2. Building business case
3. Development
4. Testing and validation
5. Launch

The process is checked on the gates at the end of every process stage. The gate ensures and includes the following main issues.

1. Quality of execution
2. Business rational
3. Action plan

The results of the evaluation on the gate can result in any one of theses; go, kill, hold, recycle, or “conditional go”. Gates have three main elements, which are deliverables, criteria, and outputs.

The company can yield satisfaction by creative ideas and implementing on the process according to the plans. The process will provide maximum satisfaction only when every process is followed as per the quality and rational actions by the managers. The innovation has its own significance in the process however,if the quality in the process is being compromised due to the extensive innovation, then innovation can be sub-sided and can be lowered but the process will be followed strictly.

The type of innovation that might not be ideal might a case in which the stage gate process is the potential for the structural organization to interfere with innovation because overly structured processes might cause innovation to be reduced in significance and to delay the largely iterative process of innovation..........................

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