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Why New R&D TeamVision, Strategy, Objective Road Map/Process/Methodology - Stage-Gate NPD FrameworkWhat is Stage-gateTMWhy Stage-GatePerformance Measurement Stage-Gate ExamplesIdeas lineup – Starting Point
Citation preview
R&D Team Plan
2009/Oct/11
2
1 Contents
1. Why New R&D Team2. Vision, Strategy, Objective 3. Road Map/Process/Methodology - Stage-Gate NPD Framework
1. What is Stage-gateTM
2. Why Stage-Gate3. Performance Measurement 4. Stage-Gate Examples
4. Ideas lineup – Starting Point
3
1 Why this new R&D Team
• Growth – Shareholder Demands• Changing Needs • Competitive Reaction• New R&D/Technology• Macro environmental Constraints – Recession, Saturation in
tradition application development
4
Vision: Open Source, economy class, enterprise solution team
Strategy: 30% resource in R&D, Innovation and New product development (NPD)
Objective:
• Create Strategic Infrastructure• Re-Usability – Code Asset management.• Component, Plug-in Dev
2 Vision, Strategy & Objective
5
What is Stage-Gate?
Deliverables
Schedules
Issues
Resources
Toolbox
Stage-Gate Process
6
What is Stage-Gate?
Decision Point Reviews
StructuredBusinessProcess
• Define strategic direction of product development efforts• Effective resource allocation across products• Management of the product development “pipeline”
Management Approval Team
• Roadmap for all projects• Consistent terminology• Inter-functional linkages• Deliverable templates
• Small, cross-functional teams representing the entire project• Effective communication and coordination• Project focus with clear responsibility and authority
Core Teams
• Milestone driven• Business perspective• Phase by Phase
guidance• Core Team
empowerment
Lead
1 2 3 4
Chair
IdeasIdeas
Projects proposed
Projects proposed
Projects executedProjects executed
Mediocre Products,Discontinued Products,Flops
Mediocre Products,Discontinued Products,Flops
Successful Products
Successful Products
Projects canceled
Projects canceled
7
What is Stage-Gate?
/Or Phases
/Or Decision Point
Task Owner View
Management View
8
A Generic Stage-Gate New Product Development Process
IdeaIdea
PIRPIR
Stage1
Stage1
Stage3
Stage3
Stage2
Stage2
Stage4
Stage4
Stage5
Stage5
Gate1
Gate2
Gate3
Gate4
Gate5
Ideation
InitialScreen
PreliminaryInvestigation
Detailed Investigation(Build Business Case)
SecondScreen
Decision onBusiness Case
Development
Post developmentReview
Pre commercializationBusiness Analysis
Post implementationReview
Testing andValidation
Full Productionand Market Launch
9
Stage Gate Product and Technology Development and Review Process 9
Product, Development and Review Process
10
Stage Gate Product and Technology Development and Review Process 10
Stage Gate Technology Review Process:
1. What problem are we trying to solve?
2. How to design a stage gate review process.OK, I believe it’s good for me,
But how do I actually DO it?
11
Stage Gate Product and Technology Development and Review Process 11
G1A1 A2 A3G2I1
I2
O2
O1
Stage Gate Development Process
Stage Gate Review Process
Stage Gate Concept is Quite Simple…
1. Break product development into stages,
2. Put “Stage Gate Review” decision blocks in the process flow…
12
Stage Gate Product and Technology Development and Review Process 12
ContinueA A
Redirect
KillHold
G
All Gates work the same way…
At the end of each development stage, you hold a stage gate
review to determine if you should:
- Go to the next stage,
- Remain in the current stage,
- Put the project on hold,
- Kill the project.
13
Stage Gate Product and Technology Development and Review Process 13
The Devil is in the Details:
1. Design/Structure• Example of structure.
2. Execution• How do you perform a gate review?
3. Culture• How do you actually make it work?!
14
Stage Gate Product and Technology Development and Review Process 14
2. Stage Gate Review Execution:
Review is usually a meeting. So -
• What is the actual purpose of the meeting?
• How are decisions arrived at?
• Who should attend the meeting?
• How is the meeting conducted?
ContinueA A
Redirect
KillHold
GThis is what your “final” project presentation could look like next year.
15
Stage Gate Product and Technology Development and Review Process 15
Purpose of Stage Gate Review Meeting:
Stage gate reviews…
• Are business decision meetings
• Are not project reviews
• Are not design reviews
• Are not performance reviews
A key advantage of a well-deigned and well-executed stagegate process is that it makes the engineer/technologists anintegral contributor to business decisions.
This is absolutely essential in technology-driven businesses.
About picking the projects that
will have the biggest impact
on your business
16
Stage Gate Product and Technology Development and Review Process 16
Purpose of Gate Review Meeting:
• Picking “winner” projects and killing “losers”.
• For “winners”, this is about:
• Making an investment decision (where to put money),
• Allocating and committing resources (where to put people),
• Assessing potential of project (all info needed to make good decision), not quality of project or product,
• Assessing risk of project (but “winner” may be high or low).
17
Stage Gate Product and Technology Development and Review Process 17
ContinueA A
Redirect
KillHold
G
OK, but how do we decide what the decision will be?- Continue?- Redirect?- Hold?- Kill?
Well, let’s look inside of a gate…
18
Stage Gate Product and Technology Development and Review Process 18
Is thisa “good”project?
All information
needed?
Yes
No
Kill Hold
Continue
Re-Direct
Whatis its
priority?
Yes High
No Low
Gate Decision Elements:
Does this project makebusiness sense:
~ Strategically?~ Financially?~ Technically?
Has the teamcompleted allthe activities anddeliverables in aquality fashion?
What is the impact relative to other projects?
Are people and money available?
19
Stage Gate Product and Technology Development and Review Process 19
The general idea here is to make the decision as
- Systematic- Automatic- Robot-like
As possible.
You want an objective process that drives opinion and conjecture out of the process.
Anybody/everybody in the organization comes to the same decision.
PetProjects
20
Stage Gate Product and Technology Development and Review Process 20
StageGate
Review
Executors (R):Running thecurrent project
Experts (R):Validating project deliverables
Customers (V):Receiving next project outputs
Suppliers (V):Asking for next project
Investors (V):Paying* for next project
Who Should Attend the Review?
R = RecommendV = Vote* = “Paying” means providing money and/or people
Note: a particular individual may play more than one role.
21
Stage Gate Product and Technology Development and Review Process 21
StageGate
Review
Executors (R):Running thecurrent project
Experts (R):Validating project deliverables
Customers (V):Receiving next project outputs
Suppliers (V):Asking for next project
Investors (V):Paying* for next project
Who Will Attend YOUR Review?
22
Stage Gate Product and Technology Development and Review Process 22
Typical Stage Gate Review Agenda:
• 20 min. Executor presentation and recommendation –All participants – Silent listening to presentationNo discussion, but clarifying questions allowed.
• 15 min. General discussion –All participants – Led by non-voting facilitator.
• 15 min. Voter deliberation –Typically voters only – Led by facilitator.
• 10 min. Tem briefing on decision and action items –All participants – Led by facilitator.
• 1 hour Yes, this can, and must, be met – for $10K projects and $1M projects!
23
Stage Gate Product and Technology Development and Review Process 23
Gatekeeper Rules of Order
• “Gatekeepers” are the voters at the stage gate review meeting.
• If gate review meetings degenerate to vicious attacks by gatekeepers on project teams –
Then before long you won’t have any new projects.
• To avoid having this happen, gatekeeper rules of order need to be established and enforced (by review meeting facilitator).
Here are some rules…
24
Stage Gate Product and Technology Development and Review Process 24
Gatekeeper Rules of Order – Part 1
• Gatekeepers must attend in-person or virtually, or your vote defaults to “Continue”. A proxy may be designated.
• Gatekeepers must review team presentation before the meeting.
• Serious concerns must be communicated to teams before the meeting. No “surprise attacks” allowed.
• No “cross-examination” allowed during team presentations.
• Gatekeepers cannot require and/or base decisions on information outside of the scope of the stage being reviewed.
25
Stage Gate Product and Technology Development and Review Process 25
Gatekeeper Rules of Order
• Decisions must be made in accordance with the criteria for the gate, not on gatekeepers opinion.
• Final vote must be unanimous. Gatekeepers must be wiling to negotiate with other gatekeepers.
• You can “Hold” a project, but you can’t “Hold” a decision.
• “Continue” decision means that money and resources are committed!
26
Stage Gate Product and Technology Development and Review Process 26
• You spent half your budget on projects that you killed.
• Actually, this would happen anyway (or worse).
• But here you plan for this right up front.
That takes significant managerial courage.
Stage Projects Killed Cost Per Total Cost Cost of Killed
A 60 45 $50K $3M $2.25M
B 15 11 $200K $3M $2.20M
C 4 1 $1M $4M $1M
$10M ~$5M
27
Stage Gate Product and Technology Development and Review Process 27
Bottom Line…
• The vast majority of projects will be killed.
• People will see this as:
• Personal failure,
• Disruptive and unsatisfying - Constantly starting new projects – never “finishing” anything.
• Threat at performance review time – What am I being judged on? What is “success”? What is “excellence”?
• Threat to job security – Constantly killing projects implies an insecure position.
This is the ultimate cultural challenge of Stage Gate
What grade would YOU expect for a killed project?
28
Why Use Stage-Gate?
• Provides NPD Strategic Infrastructure • Organizes Decision-Making• Provides Consistent Metrics• Facilitates Cross-Functional Communication• Contains and Controls Risks (time & money)
29
Performance Measurement
• Measuring the Stage-Gate– Time to market (Development Cycle Time)– Time to profit (Break Even Time)– New product commercialization rate– Time lag between successive product launches– Average number of new products released per FTE– Number of products or projects in each stage– Percent of product or project candidates accepted/rejected– Number of total products or projects currently sponsored– Percent of product or project resources in gate process– Number of cycles or repeat gate reviews
30
Critical Success Factors
• Resource Availability– Allocate 2 full time resource
• Knowledge Management System– Team Blog & ITIL
• Risk Management System– CMMI QMS Process
• Project Management Methodology– Agile Product Development
31
1 Enterprise Mobile Value Added Services (Mobile VAS)
2 way SMS integration with Web Lead Management
Localize SMS & Localize content on mobile web
Send SMS and download theme, wallpaper, ringtone etc.
mPoint - Mobile portal for Contests, Game, Downloads, community, helpdesk, loyalty program, Nearest Dealer's location, surveys , eLearning, what's new etc. and many more upcoming trends in mobile users (3G & 4G)
2 Mobile Marketing - SMS, Voice, WAP
3 LBS-based Mobile Marketing
4 Mobile Installable Application, tools, utilities, Mobile goodies
5 Mobile CRM
6 Viral tools:MMS greeting cards, send-a-friend mechanisms, etc.
7 Revenue sharing business model of MVAS
8 Service Delivery Platform (SDP) - Server Establishment
9 OpenSocial - Google open source social media apps
10 Project Management tool - open source
11 The Balanced Scorecard
12 Online surveys application
13 Knowledge Base Blog & IT Infrastructure Library ITIL
14 User Experience Design - Articture/framework , tools, Util. etc.
15 The Stage – Gate approach - R&D Process Implementation
16 Agile Software Development Process - Initiation
17Portal Development for Agro segment, Helth & fitness, New tech, Sports, Localize SMS Students & Job (Top 5 Category/Growth rate)
18 Google Map API integration
Ideas Lineup – The Starting Point