New Product Development Group: New Stage Gate Process

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New Product Development Group New Stage Gate
Process

• Prepared by
• Karyn Liane Dobin
• April 19, 2003

2
Houstonwe have a problem

• We have no process
• Ok, we have one but it doesnt work
• What would work?

3
Overview of Discussion

• Establish a Vision and a Mission
• Set Goals and Strategies
• Research
• Factors for defining NP Process
• Must haves for NP Performance
• Stage-Gate Process
• Next Steps

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NPG Vision

• To be the global market leader in developing
  new financial market data delivery platforms that
  meet and exceed our clients needs

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NPG Mission

• Determine where our new product development
  process has failed, what changes in the process
  need to made, and successfully implement those
  changes in order to fulfill our Vision

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NPG Goals

• Re-organize Product Marketing and Management team
  into a superior team that believes in the new
  process
• Determine business lines for NPG focus
• Discontinue distribution of product platforms
  that dont meet revenue targets
• Create products that meet our clients needs and
  have real potential to meet our revenue targets
• Ensure our data content provided is 1 or 2 in
  the market
• Always be ahead of our competition in utilizing
  new technology to deliver market data products to
  our clients

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NPG Strategies

• Meet with Executive team and ensure their full
  support in implementing a new process
• Define what businesses within the market data
  distribution industry we want to be in
• Research those businesses, and ensure there is
  potential to make a profit that meets our revenue
  targets
• Conduct research to determine clients needs
  within those business lines
• Determine what clients want to pay for those
  services
• Determine if we can create products within our
  budget that will meet our clients needs
• Determine if we can deliver product at a cost
  that would meet company profit
  targets

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NPG Strategies

• Basically, create a winning process from idea
  to launch

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Factors for defining New Product Process

• Understand our user needs
• Establish products strategic alignment with
  strategy of Moneyline Telerate
• Complete a competitive analysis and establish
  product superiority
• Create priority decision criteria list
• Risk assessment
• Product positioning
• Establish product channel and support
• Ensure product is endorsed by upper management
• Get total organizational support

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Marketing Research Needed Earlier

• Do a Product Failure Study
• Do a Product Success Study
• Compare the differences between the two
• Adopt a systematic new product process
• Doing the projects right define the road map
  from idea to launch and follow it, this way
  project teams will build in success factor by
  design, rather than by chance
• Doing the right projects just as important
  doing the projects right
• Need extensive and careful analysis of the market
  BEFORE taking on new products

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New Process Use Stage-Gate
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Stage 0 Establish Company Strategic Direction

• Get company strategic direction
• Product failure and success studies, with
  comparison between the two
• Get buy-in from for new process from executive
  team for new process, including commitment of
  staff and resources
• Determine accountability

• Stage 0

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Discovery New Idea Generation

• Feeding from database of
• feedback from clients wish list items
• Sales feedback
• Internal suggestions
• Marketing research
• come up with ideas of innovative products

• Discovery

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Gate 1 Does Idea Meet Strategic Direction?

• Filter out ideas that don't meet strategic
  direction

Gate 1
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Stage 1 Scope Ideas that passed Gate 1

• Do they meet the client need?
• Can they be built within established budget?
• Can we bring the product quickly to market?
• Do we know any competitors currently building
  similar product?
• Do we think clients will pay for this?
• How will this be a solution for clients to make
  money?
• Contact small group of close clients and ask them
  for their opinion

• Stage 1

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Gate 2 Check against Specific Criteria?

• Gather a team with accountable representation
  from development, operations, finance, legal,
  marketing, and sales, and determine if ideas
  feasible
• What does each department need to move forward?
• Check id idea meets the specific criteria to move
  forward to building the business case

Gate 2
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Stage 2 Build Business Case

• Do in-depth research and investigation
• Competitive analysis
• SWOT analysis
• Determine target market
• Survey market
• Positioning
• Potential profit analysis
• Cost and time frame to build
• Define team to build
• Define responsibilities
• Define exact features of product, unique sales
  points

• Stage 2

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Gate 3 If we build it, will they come?

• Present business case from stage 2 to the team
  established in gate 2, and determine if based on
  information if we think if we build it, clients
  will buy it and we can meet our revenue goals.

Gate 3
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Stage 3 Development

• In a parallel process develop
• Product
• Proto-type
• Working model
• Alpha
• Operations process
• Help desk support process
• Marketing materials
• Sales procedures
• Test with small group of clients Are USP
  important
• Survey clients

• Stage 3

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Gate 4 Ready to go to testing?

• Gather the established team, review the developed
  product, and determine if we feel the product is
  ready to move forward to the testing stage.
• Does the product meet the defined goals?
• Is it stable?
• Does the market still want this product?

Gate 4
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Gate 4 Testing and Validation of Entire Process

• Marketing Process
• Sales Process
• Process to Deliver to clients
• Product functionality
• Help desk support
• Operation support
• Survey clients on success/failure of processes,
  will they buy?
• Survey internal processes

• Stage 4

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Gate 5 Will Clients Buy?

• Gathering the team, determine if the testing
  phase was successful
• Are we ready to launch?
• Do clients still want this product?
• Will they pay for the product?

Gate 5
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Stage 5 Product Launch

• Stage 5

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Post Launch Review

• Establish metrics to determine success
• Where did we make mistakes?
• Where did we go off the process?
• What did we do right?
• How should we change the process for next time?
• Final business evaluation to determine if the
  client met the original goals of market share,
  profitability and client fit

• Post
• Launch
• Review

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Must haves for NP Performance

• High Quality New Product Process
• Steps, activities, and decision points that new
  products follow from idea to launch to beyond
• New Product Strategy
• Set goals/objectives for business total new
  product effort
• The role of NP is clearly communicated to all
• Clearly defined areas for strategic focus
• NP effort has a long-term thrust and focus
• Resource Commitment
• people and money are committed by upper management

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Next Steps

• Get the buy-in from Executive management
• Put Stage Gate process in place
• Do the research!
• Build winning products
• Keep revisiting the process, to make sure we are
  on track to meet vision