Exam L8-L9 Flashcards
STAGE GATE PROCESS
Stage-gate = breaking a large project into a series of stages with gates between them. Before going to the next phase at each gate you check whether you should continue.
- Stage 1: Scoping
- Stage 2: Build Business Case
- Stage 3: Development
- Stage 4: Testing & Validation
- Stage 5: Launch
Every stage is Cross-Functional
Stage Gate is a ‘rational planning’ approach
o More rigid + less adaptable
o Changes in requirements affect second generation products
STAGE GATE PROCESS
Strengths:
Strength of STAGE GATE PROCESS
- Quality of execution
- Focus and prioritization
- Cross-functionality
- Parallel processing & spirals
- Better front-end homework
STAGE GATE PROCESS
Weaknesses
- Overemphasis on the execution of stages
- Rigidity
- Linearity
- Same process for all types of projects
- Use as project control system
- Bureaucracy
NextGen Model
Emphasize:
- Coupling, iteration, and feedback
- Cross-functional collaboration
- Integration with external actors (ex. open innovation)
Added Service Layer
Products x Service
Added Service Layer:
Products
* are durable
* are often tangible
* their ownership can be exchanged
Service
* are co-produced by consumer
* are perishable
* are intangible
* are produced and consumed simultaneously
* are heterogeneous
Servitization =
Servitization =
Shift towards ‘service’ (value, experience) that products offer (job to be done)
Shift toward pay-for-use instead of pay for ownership
o (e.g., ‘pay per lux’, ‘power by the hour’, ‘product as a service’)
Digital product life-cycle services =
Digital product life-cycle services
= Services to facilitate the customer’s access to the supplier’s good and ensure its proper functioning during all stages of the life cycle
Examples
o Repair Services
o Remote product status update
o Remote vehicle inspection
Asset Efficiency Services =
Asset Efficiency Services
= Services to achieve productivity gains from assets invested by customers
Examples
o Remote condition monitoring to ensure specific guaranteed uptime of the product
o Program to preemptively replace parts that are likely to fail soon
o Fuel saving advice to a driver
o GO BEYOND ‘A DEED’ (ex. single inspection)
Process Delegation Service =
Process Delegation Services
= services to perform processes on behalf of the customers
Examples
o Management in behalf of the company
How to use data for Servitization?
How to use data for Servitization?
DATA DENSITY PROCESSES
1_ Pattern spotting
= Identify data-driven solutions for improving services
* Service Process Innovation
2_Real-time decisioning
= Predict likely future states where value can be generated through a fast, targeted response
* Customer Experience Innovation
3_Synergistic exploration
= Using data to identify new service innovations (input for product updates)
* Service Concept Innovation
Consequences of developing Digital Innovations
How has it changed?
Product characteristics have changed: (the ‘what’)
1. Updatability, product continues to evolve after launch
2. Product-Service combinations
3. Using data in product development
Stakeholders involved have changed: (the ‘who)
1. Cross-functional integration: New role of IT and product development processes; increasingly firms collaborate with heterogeneous actors.
Development work has changed: (the ‘how’)
1. Influence of agile work practices
2. Design thinking
3. Digital affords probing and experimentation
Changing role of IT Department:
- IT components (portals, data warehouses, data analysis, real-time data)
- From ‘business enabler’ to being involved in innovation process
- Existing NPD practices are confronted with typical IT practices
CHALLENGES FOR INCUMBENTS
Product-Centric incumbents need to balance:
- Existing versus new innovation practices
* Develop new capabilities without hampering existing practices - Product versus process focus
* Design products for continuous evolution; rather than annual “one-off” incremental innovations Internal versus external collaborations - Internal versus external collaborations
* Has been efficiency-oriented (based on well-defined interfaces, roles and and tasks) - Control versus flexibility in governance
* E.g., Freeze designs prior to production?
Digital innovations
Characterized by
Digital innovations is characterized by =
Vast uncertainty, increased solution complexity, shorter time to market, which require more flexible and adaptive ways of managing the front-end of innovation.
A front-end path is characterized by:
A front-end path is characterized by:
High uncertainty as it is not fixed and instead may change as new information becomes available
Agile =
&
Benefits + Main Components
Agile = a product development designed for software design. Releases the most valuable features of a product first, then Agile teams go back and update those features frequently.
* Agile models’ methods are not only applicable to software development.
Benefits of Agile:
- Brings agility, adaptability, and speed to innovation processes
- Breaks the innovation process into a series of short, iterative, and incremental sprints, each typically of 1-4 weeks long
- Main Components:
1.) sprint planning meetings
2.) stand-up meetings
3.) demo presentations
4.) retrospective meeting - Focuses on micro-planning, so that the development teams can execute in a focused, efficient manner, while still planning and building on the fly
Hybrid model
Challenges
Hybrid Model:
Challenges
1. Scarcity of resources for dedicated teams
2. Management skepticism
3. Handling fluid definitions of work done and products
Hybrid Agile-Stage-Gate Setting
Transfer Management
o Interdepartmental collaboration
o Champions
o Customer
o Cross-functional teams
Transfer Scope
o Business models
o KPI’S
o Definition of done
o Technologies and Systems
Synchronization
o Processes
o Resources
o Timelines
Agile-Stage-Gate Hybrid Model:
Benefits:
Agile-Stage-Gate hybrid model:
Benefits:
- They bring both benefits
- Agile methods give the stage-gate model powerful tools for micro-planing, day today work control, and progress reporting.
- More responsive to changes – requirements and customer needs
- Better team communication
- Integrates customer perspective effectively
- Addresses resourcing issue (ex, staffing) directly
- Reduces cycle time and is more productive
Adjustments using the Agile-Stage-Gate hybrid model for physical product development.
Adjustments using the Agile-Stage-Gate hybrid model for physical product development.
- Defining a “Done Sprint” the done sprint is important, as it is something tangible by which progress can be measured.
o Software development is infinitely divisible, hardware development usually isn’t. Therefore the “done sprint” should be redefined - Resource Allocation: a dedicated, co-located project team is necessarily.
o Physical product development demands the use of a cross functional team. - Integrate Traditional-Model Planning into Sprint Planning.
o During the development stage the process evolves sprint by sprint, planning each sprint on the fly and in real time. both the product and the development plan evolve over time.
When to Use Agile-Stage-Gate?
When to Use Agile-Stage-Gate?
Agile-Stage-Gate adds the most value when:
o there is high uncertainty and great need for experimentation and failing fast,
o For radical new product innovation projects (rather than incremental)
More uncertainty
Need for quick, iterative learning
3 EMERGING APPROACHES:
EMERGING APPROACHES:
- Agile-Stage-Gate Hybrid
- Lean Start-Up
- Experimentation Through Prototype Testing
AGILE APPROACH: SCRUM
Principles:
Agile-Scrum:
* Time-boxed sprints: Short sprints (2-4 weeks that result in potentially releasable/ working software
* Daily scrum meetings (15 min: past 24h, next 24h, problems)
* Retrospective review meetings (evaluate result per spring, goals for next)
Tools:
* Sprint backlogs (list of product features to be developed in the time frame) based on Product backlog (constantly updated, prioritized list of features for the final product)
* Scrum board (visual display of the status of activities)
* Burndown charts (compares expected progress against actual progress
Roles (sometimes called differently):
* Product owner (manages stakeholders, responsible for project)
* Scrum master (responsible for project team’s daily activities)
* Development team
LEAN START-UP
Core Principles
LEAN START-UP
Core Principles
1. Search of a for a scalable and repeatable business model
2. Test hypothesis (early on, with customers)
1. incremental changes (make small adjustments/iterations)
2. or pivot - go to a completely different, fundamental changes
3. Develop MVP through agile development approach
