henkels stage-gate process (portugal division) nyu, new products & services development march 25...
TRANSCRIPT
Henkel’s Stage-Gate Process (Portugal Division)
NYU, New Products & Services DevelopmentMarch 25th, 2006
MCM
Henkelis a leader with
brands and technologiesthat make people's lives
easier, better and more beautiful.
Henkel’s Vision
Quality with Brands & Technologies
HomeCare
Adhesives, Sealants& Surface Treatment
Consumer
Personal Care
Industry
Three Areas of Competence
We do not develop new products
But...
We are able to launch in Portugal NEW brands or products that the
company owns.
Henkel in Portugal
The Stage-Gate Process
PostLaunch Review
Discovery
Stage 1
Scoping
Stage 2
Building theBusiness Case
Stage 3
Testing
Stage 4
Launch
Gate1
Idea Screen
Go / Kill
Gate2
SecondScreen
Go / Kill
Gate3
Third Screen
Go / Kill
Gate4
Forth Screen
Go / Kill
Discovery / IdeationPre-work designed to discover and uncover
opportunities and generate ideas
• Promote internal campaign for ideas • Create a “bank Idea” • Assign a team member to manage• Ideas generated
Gate 1 – Idea ScreenGo/Kill decision point
This gate is a “gentle screen” and amounts to subjecting the project to a handful of key “must-meet” and “should-meet” criteria.
• Is the idea aligned with the company’s mission, goals and strategy?• Is the market attractive?• Does the idea offer competitive advantage over competitors?• Is the idea part of the product portfolio of the company?• Does the company have expertise to manufacture the product
(technical feasibility)?• Does the product fit with company’s policies?• Are there any killer variable (environment issue / legislative action)?
Discovery• Bank idea (Ideas Generation) - The Product Manager manages the group
Gate1
Idea Screen- PM & Marketing Manager
Go / Kill
The Stage-Gate Process
Stage 1 - ScoopingA quick, preliminary investigation of the projects – largely desk
research
• Preliminary market assessment to determine market size, market potential and market acceptance.
– Internet search, library search, internal reports, customers, focus groups
• Preliminary technical assessment to establish product objectives & feasibility
– Quick and preliminary in/house appraisal of the proposed product
• Preliminary business & financial assessment to map out strategic & competitive rationale
Gate 2 – Second ScreenGo/Kill decision point
The Idea is reevaluated in the light of the new information obtained in Stage 1.
• Does the product respond to a customer need?• Is the competition moving to the same direction?• Is the company capable of manufacturing the product? • When would be the payback period?
Discovery• Bank idea (Ideas Generation) - The Product Manager manages the group
Gate1
Idea Screen- PM & Marketing Manager
Go / Kill
ScopingPreliminaryAssessment:• Market• Technical• FinancialFor the 3 “winners”
Stage 1
SecondScreen- MKT Manager & Country Manager
Go / Kill
Gate2
The Stage-Gate Process
Stage 2 – Building the Business CaseA much more detailed investigation involving primary research –
both market an technical – leading to a business case, including product and project definition, project justification and a project plan. It is the “critical homework stage”!
• Define the “winning” new product (concept and positioning):
- Target market
- Benefits
- Desired features, attributes, requirements and especifications• Competitive Analysis
- Determine strength and weakeness • Detailed Technical Appraisal
- Manufacturability / cost to manufacture
- Detailed legal, patent, and regulatory assessment.
- Investment review• Business and financial analysis
Gate 3 – Third ScreenGo/Kill decision point
This is the last point at which the project can be killed before entering heavy spending. Here the full project team is design and it must be headed by a leader with authority!
• Is the marketing still attractive to justify the investment?• Can the customer’s inputs be translated into technically and
economically feasible solution?• Is the company responding to a competitor’s weakness?
Discovery• Bank idea (Ideas Generation) - The Product Manager manages the group
ScopingPreliminaryAssessment:• Market• Technical• FinancialFor the 3 “winners”
Gate1
Idea Screen- PM & Marketing Manager
Go / Kill
SecondScreen- MKT Manager & Country Manager
Go / Kill
Stage 1 Gate2
Building theBusiness CaseDetailed Investigation forthe “winner idea”
Stage 2
Third Screen- Country Manager & Intl. SBU Manager
Go / Kill
Gate3
The Stage-Gate Process
Stage 3 – Testing and ValidationTests or trials in the market-place, lab, and plant to verify and
validate the proposed new produxt and its marketing and production/operations
• Carry out an extensive validation of the entire project• Implement in-house product tests• User or field trials of the product• Trial, limited, or pilot production• Pretest market, test market or trial sell• Reviewed business and financial analysis
Gate 4 – Forth ScreenGo/Kill decision point
This final gates open the door to full commercialization – market launch and full production or operations start-up. It is the final point at which the project can still be killed.
• Was the testing & validation activities properly executed?• Were the results from the Testing and validation satisfactory?• Were required improvements implemented in the product?• Is the expected financial return according to the plan?• Are the operations and marketing plans reviewed and approved
for implementation?
TestingTest the product in 1 supermarket chain for 1 month
Discovery• Bank idea (Ideas Generation) - The Product Manager manages the group
ScopingPreliminaryAssessment:• Market• Technical• FinancialFor the 3 “winners”
Building theBusiness CaseDetailed Investigation forthe “winner idea”
Gate1
Idea Screen- PM & Marketing Manager
Go / Kill
SecondScreen- MKT Manager & Country Manager
Go / Kill
Third Screen- Country Manager & Intl. SBU Manager
Go / Kill
Stage 1 Gate2
Stage 2 Gate3
Stage 3
Forth Screen- MKT Manager & Sales Manager
Go / Kill
Gate4
The Stage-Gate Process
Stage 4 – LaunchCommercialization – beginning of full operations
or production, marketing, and selling
• Implement of the marketing launch plan and the production or operations plan
Post Launch Review
• Review product launch performance• Market acceptance
• Ability to support technical product
• Market trends
• Finances
• Revise financial review with updated information
- Review sales & profits• Review strengths & weakness
- Identify successful actions
- Identify mistakes/unsuccessful actions• Evaluate what changes (lessons learned) need to be made for future
launches• Evaluate whether launched met criteria and fulfilled mission, goals &
strategy of corporation & department
PostLaunch Review
Forth Screen- MKT Manager & Sales Manager
Discovery• Bank idea (Ideas Generation) - The Product Manager manages the group
ScopingPreliminaryAssessment:• Market• Technical• FinancialFor the 3 “winners”
Building theBusiness CaseDetailed Investigation forthe “winner idea”
Launch
Gate1
Idea Screen- PM & Marketing Manager
Go / Kill
SecondScreen- MKT Manager & Country Manager
Go / Kill
Third Screen- Country Manager & Intl. SBU Manager
Go / Kill Go / Kill
Stage 1 Gate2
Stage 2 Gate3
Stage 3 Gate4
Stage 4
TestingTest the product in 1 supermarket chain for 1 month
The Stage-Gate Process
Conclusions:
The Stage-Gate is a plan that focuses on quality of execution, builds in the up-front homework, is strongly market-oriented and is backed by appropriate resources
This model brings discipline to the new product process It is relatively simple and easy to understand and communicate. The process provides a road map to facilitate the project and it defines the project leader’s objectives and
tasks (include senior executives from the beginning) Increase investment as risk decreases Check acceptance with customer during the whole process It gives you the opportunity to “Win by a nose!”
New Product and Services Development
PostLaunch Review
Forth Screen- MKT Manager & Sales Manager
Discovery• Bank idea (Ideas Generation) - The Product Manager manages the group
ScopingPreliminaryAssessment:• Market• Technical• FinancialFor the 3 “winners”
Building theBusiness CaseDetailed Investigation forthe “winner idea”
Launch
Gate1
Idea Screen- PM & Marketing Manager
Go / Kill
SecondScreen- MKT Manager & Country Manager
Go / Kill
Third Screen- Country Manager & Intl. SBU Manager
Go / Kill Go / Kill
Stage 1 Gate2
Stage 2 Gate3
Stage 3 Gate4
Stage 4
TestingTest the product in 1 supermarket chain for 1 month
Stage 3 – DevelopmentThe actual detailed design and development of the new
product, and the design of the operations or productuction process
• Product development in parallel with corporate marketing & technical product development
- Rapid prototype, working model, or first prototype are taking to the customer for feedback / assess.
- Continue market analysis
- Map out a market launch plan involving corporate marketing and technical area.
• Undertake lab tests, in-house tests and alpha tests• Revise financial analysis with update information• Assess legal issues (approval patents, regulations)
Gate 4 – Forth ScreenGo/Kill decision point
• Is the developed product consistent with the original quality definition specified at Gate 3?
• Does the product continue to be attractive to the market?
• Is the product ready to move forward to Testing? • Are revised financials still with Budget?• Are the marketing and operation plans reviewed for
probable future execution?
ANNEXES - The Stage-Gate Process: The Development Stage