L8 Flashcards
STAGE GATE PROCESS
- 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
- Better front-end homework
- Focus and prioritization
- Parallel processing & spirals
- Cross-functionality
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 Support Services =
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
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
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
Consequences of developing Digital Innovations
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
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
Stage-Gate
Benefit:
Stage-Gate =
Provides macro model to select projects, and once selected, map out the key stages, best practice activities, and roles and responsibilities
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
Model of Front End Transfers of Digital Innovation
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
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 - daily routines create a flow
- Reduces cycle time and is more productive
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
