Stage gates in innovation product management

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volume_up Stage Gates in Innovation Product Management Stage gates is a structured approach to innovation product management that divides the product development process into a series of stages, each with its own set of deliverables and criteria for success. The gates serve as decision points where the team reviews the progress of the product and decides whether to proceed to the next stage or terminate the project. The typical stage gate process includes the following stages:

1. Discovery: The team identifies and evaluates potential product opportunities.
2. Scoping: The team defines the product concept and develops a high-level business case.
3. Build: The team develops a prototype of the product and tests it with potential customers.
4. Test and validation: The team conducts market research and field testing to validate the product concept and market demand.
5. Launch: The team prepares and executes the product launch plan.
6. Post-launch: The team monitors the product's performance and makes adjustments as needed.

Company Example: Shopify Shopify is a Canadian e-commerce company that provides a platform for businesses to create and manage their own online stores. Shopify was founded in 2006 and has since grown to become one of the leading e-commerce platforms in the world. In 2021, Shopify launched a new product called Shopify Payments. Shopify Payments is a payment processing solution that allows Shopify merchants to accept payments from their customers without having to set up their own merchant account. Shopify implemented Shopify Payments using a stage gate process. The first stage was discovery. The Shopify team identified and evaluated the need for a new payment processing solution. They found that many Shopify merchants were struggling to set up and manage their own merchant accounts. They also found that merchants were paying high fees to third-party payment processors. The second stage was scoping. The Shopify team defined the Shopify Payments product concept and developed a high-level business case. They identified the key features and benefits of the product, as well as the target market. They also estimated the costs and revenues associated with the product. The third stage was build. The Shopify team developed a prototype of Shopify Payments and tested it with a small group of merchants. They received positive feedback from the merchants and made adjustments to the product based on their feedback. The fourth stage was test and validation. The Shopify team conducted market research and field testing to validate the Shopify Payments product concept and market demand. They found that there was a strong demand for the product from Shopify merchants. The fifth stage was launch. The Shopify team prepared and executed the Shopify Payments launch plan. They marketed the product to Shopify merchants and provided them with support to get started with the product. The sixth stage was post-launch. The Shopify team monitored the performance of Shopify Payments and made adjustments as needed. They also continued to market the product to Shopify merchants. How Shopify Payments Aligned with Shopify's Strategy Shopify Payments aligned with Shopify's strategy in several ways. First, it helped Shopify to reduce the friction for merchants to start and grow their online businesses. By providing a one-stop shop for e-commerce, Shopify made it easier for merchants to get started with online selling and to scale their businesses. Second, Shopify Payments helped Shopify to increase its revenue. Shopify received a fee for each transaction processed through Shopify Payments. This additional revenue stream helped Shopify to grow its business and to invest in new products and services. Finally, Shopify Payments helped Shopify to improve the customer experience. Shopify merchants were able to provide a seamless checkout experience for their customers by using Shopify Payments. This helped to increase customer satisfaction and loyalty. Conclusion The stage gate process is a structured approach to innovation product management that can help companies to develop and launch successful products. Shopify is a company that has successfully implemented a stage gate process to launch new products, such as Shopify Payments.  

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