Stage Gates in Innovation Product Management
The stage-gate process is a structured approach to innovation product management that divides the product development process into a series of stages, with decision gates at the end of each stage. The purpose of the stage-gate process is to ensure that only the most promising products are developed and launched, and to reduce the risk of failure.
The traditional stage-gate process has five stages:
- Discovery: This is the stage where new product ideas are generated and screened. Ideas are typically generated from a variety of sources, such as customers, employees, and market research. Once an idea has been generated, it is screened to assess its potential. This may involve conducting market research, competitor analysis, and technical feasibility studies.
- Scoping: If an idea passes the screening process, it will enter the scoping stage. During this stage, the product team will develop a more detailed plan for the product, including its features, benefits, target market, and business model.
- Development: This is the stage where the product is actually developed. This may involve designing and prototyping the product, conducting market testing, and developing the marketing and sales plan.
- Testing and validation: Once the product has been developed, it is important to test it with potential customers to ensure that it meets their needs and expectations. This may involve conducting beta testing or user acceptance testing.
- Launch: If the product passes the testing and validation stage, it is ready to be launched to market. This involves making the product available to customers and promoting it through marketing and sales campaigns.
Company Example: Tesla Model 3
Tesla is a company that has used the stage-gate process to successfully develop and launch new products. One example is the Tesla Model 3, an electric car that was launched in 2017.
Discovery: The idea for the Tesla Model 3 came from Elon Musk, Tesla’s CEO. Musk wanted to develop an electric car that was affordable and accessible to a wider range of consumers.
Scoping: Once Musk had the idea for the Model 3, he and his team began to develop a more detailed plan for the product. They identified the target market, defined the features and benefits of the car, and developed a business model.
Development: The development of the Model 3 was challenging and complex. Tesla had to design and prototype a new electric car, build new factories, and develop a new battery technology.
Testing and validation: Once the Model 3 was developed, Tesla conducted extensive testing and validation. They conducted beta testing with employees and customers, and they also conducted crash testing and emissions testing.
Launch: The Model 3 was launched to market in 2017. It was immediately popular, and it quickly became the best-selling electric car in the world.
Alignment with Company Strategy
The Tesla Model 3 aligns with Tesla’s overall strategy of developing and selling electric cars. Tesla’s mission is to “accelerate the world’s transition to sustainable energy.” The Model 3 is a key part of this mission, as it is an affordable and accessible electric car that can help to reduce greenhouse gas emissions and improve air quality.
Conclusion
The stage-gate process is a structured approach to innovation product management that can help companies to develop and launch successful products. The Tesla Model 3 is a good example of how the stage-gate process can be used to develop a new product that is both innovative and successful.
