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Question 1

STAGE GATE PROCESS

Answer 1

1. Stage 1: Scoping
2. Stage 2: Build Business Case
3. Stage 3: Development
4. Stage 4: Testing & Validation
5. 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

Question 2

STAGE GATE PROCESS

Strengths:

Answer 2

Strength of STAGE GATE PROCESS

1. Quality of execution
2. Better front-end homework
3. Focus and prioritization
4. Parallel processing & spirals
5. Cross-functionality

Question 3

STAGE GATE PROCESS

Weaknesses

Answer 3

1. Overemphasis on the execution of stages
2. Rigidity
3. Linearity
4. Same process for all types of projects
5. Use as project control system
6. Bureaucracy

Question 4

NextGen Model

Emphasize:

Answer 4

• Coupling, iteration, and feedback
• Cross-functional collaboration
• Integration with external actors (ex. open innovation)

Question 5

Added Service Layer

Products x Service

Answer 5

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

Question 6

Servitization =

Answer 6

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’)

Question 7

Digital product life-cycle services =

Answer 7

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

Question 8

Asset Efficiency Services =

Answer 8

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)

Question 9

Process Support Services =

Answer 9

Process Support Services
= services to assist customers in improving their own business processes

Examples
o An energy audit
o A fuel efficiency consultation for entire fleet
o Warehouse optimization advice and logistics consulting

Question 10

Process Delegation Service =

Answer 10

Process Delegation Services
= services to perform processes on behalf of the customers

Examples
o Management in behalf of the company

Question 11

How to use data for Servitization?

Answer 11

How to use data for Servitization?
DATA DENSITY PROCESSES

Pattern spotting
= Identify data-driven solutions for improving services
* Service Process Innovation

Real-time decisioning
= Predict likely future states where value can be generated through a fast, targeted response
* Customer Experience Innovation

Synergistic exploration
= Using data to identify new service innovations (input for product updates)
* Service Concept Innovation

Question 12

Consequences of developing Digital Innovations

Answer 12

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

Question 13

Changing role of IT Department:

Answer 13

• 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

Question 14

CHALLENGES FOR INCUMBENTS

Product-Centric incumbents need to balance:

Answer 14

1. Existing versus new innovation practices
   * Develop new capabilities without hampering existing practices
2. Product versus process focus
   * Design products for continuous evolution; rather than annual “one-off” incremental innovations Internal versus external collaborations
3. Internal versus external collaborations
   * Has been efficiency-oriented (based on well-defined interfaces, roles and and tasks)
4. Control versus flexibility in governance
   * E.g., Freeze designs prior to production?

Question 15

Digital innovations

Characterized by

Answer 15

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.

Question 16

A front-end path

characterized by:

Answer 16

A front-end path is characterized by:

High uncertainty as it is not fixed and instead may change as new information becomes available

Question 17

Agile =
&
Benefits + Main Components

Answer 17

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:

1. Brings agility, adaptability, and speed to innovation processes
2. Breaks the innovation process into a series of short, iterative, and incremental sprints, each typically of 1-4 weeks long
3. Main Components:
   1.) sprint planning meetings
   2.) stand-up meetings
   3.) demo presentations
   4.) retrospective meeting
4. Focuses on micro-planning, so that the development teams can execute in a focused, efficient manner, while still planning and building on the fly

Question 18

Stage-Gate

Benefit:

Answer 18

Stage-Gate =

Provides macro model to select projects, and once selected, map out the key stages, best practice activities, and roles and responsibilities

Question 19

Hybrid model

Challenges

Answer 19

Hybrid Model:

Challenges
1. Scarcity of resources for dedicated teams
2. Management skepticism
3. Handling fluid definitions of work done and products

Question 20

Hybrid Agile-Stage-Gate Setting

Model of Front End Transfers of Digital Innovation

Answer 20

Transfer Management
o Interdepartmental collaboration
Traditionally, R&D only met once a quarter. Agile: R&D enter closer interdepertmental collaboration through sharing sessions and more frequent interactions

o Champions
Traditionally, there is no transfer recipient. Now, a champion, someone who sees the potential of a digital innovation and gets involved early in the front end process, without forcing a development-oriented decision on research. Champion stimulates commitment and facilitates transfers

o Customer
focus is on innovating together with a customer to better deal with uncertanty surrounding digital nnovation
–> increases legitimacy of front end transfers

o Cross-functional teams
digital innovations go beyond pure technological application, they demand new competencies that bridge knowledge from research and business.

Transfer Scope
o Business models
o KPI’S
o Definition of done
Research project teams do not always achieve tangible or testable digital innovations after each sprint, which creates uncertainty about the definition of done that inhibits subsequent front end transfers.
o Technologies and Systems
to overcome these difficulties, research believes it needs more modular technologies and systems, as old technologies are often fragmented

Synchronization
o Processes
o Resources
the scope of the project often changes, and due to employee turnover, competencies, and resources fluctuate. There is a lack of relevant resources
o Timelines

Question 21

Agile-Stage-Gate Hybrid Model:

Benefits:

Answer 21

Agile-Stage-Gate hybrid model:

Benefits:

1. They bring both benefits
2. Agile methods give the stage-gate model powerful tools for micro-planing, day today work control, and progress reporting.
3. More responsive to changes – requirements and customer needs
4. Better team communication
5. Integrates customer perspective effectively
6. Addresses resourcing issue (ex, staffing) directly - daily routines create a flow
7. Reduces cycle time and is more productive

Question 22

Adjustments using the Agile-Stage-Gate hybrid model for physical product development.

Answer 22

1. 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
2. Resource Allocation a dedicated, co-located project team is necessarily.
   o Physical product development demands the use of a cross functional team.
3. 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.

Question 23

When to Use Agile-Stage-Gate?

Answer 23

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