Stage Gate Process

1

Agenda

• Why we do this

• Definitions

• Managing investment over time

• Managing corporate involvement

• State Gate Example

• Ownership

2

Why We Do This• Category Power, achieved through proactively entering and exiting

categories to participate meaningfully in the highest growth opportunities

• Company Power, achieved through highly asymmetrical allocations of resources to create “unmatchable” core capabilities

• Market Power, achieved through targeting the most strategic customer segments and skewing offers and programs to ensure winning dominant shares in each

• Offer Power, achieved through disentangling three distinct forms of innovation one from another, managing each separately, to achieve differentiation, competitive neutralization, and internal productivityrespectively

• Execution Power, with specific attention on transformational initiatives that realign the company around the next-generation capabilities required to execute its strategy.

What does the world want from us?

3

General Definitions of a Stage / Gate• Stage: A set of activities to develop our investment in a given solution which ultimately leads to a profitable offering generally

available to sell.

• Gate: A decision to involve more internal resources and approach more customers (increase cost, risk, reward). A gate is a commitment. Activities are defined in each stage which when completed are presented to the designated decision makers. Those decision makers can decide to provide approval for the next stage, return the previous stage, deny approval, or request to amendthe inputs.

• If proceeding to the next stage – the decision makers determine corporate participation (teams) for that next stage.

4

Customer Acquisition & Development Stages

Gate 1:

Joint Development Pre-Release Charter

• Attrition Analysis

• Deal Reviews• Business

Reviews• Market

Analysis• Competitor

SWOT• Services Post

Mortems• Client direct

requests

Stage 0: Discovery

Hypothesis

Gate 1

• Sponsor Identification

• Project Lead Identification

• Action Team Identification

• Rapid Idea Verification

Stage 1: Hypothesis

Feasibility Assess.

Gate 2

• Product Definition

• Build / Buy / Partner

• Project Definition

• Project Justification

• Project Plan• Prospect

Validations

Stage 2: Business Case

Business Plan

Gate 3

• Requirements• Deliverable

planning• Design Phase• Development

phases• Prospect / Client

Validations• Test plans for

next phase started

• Project Validation

Stage 3: Dev Start

Prototype

Gate 4

• Customer Engagement (GSM)

• Commercial Validation

• Org Readiness Planning

• Development releases

• Development Services

• Validation of test plans / success criteria

Stage 4: Testing / Validation

MVP

Gate 5

• Org Readiness activities - PMO

• Broader LOB target availability

• Ongoing development

Stage 5: Pre -Launch

MLP

Gate 6

Stage Gate: Activities

5

Investment over Time

6

• Stage Gate minimizes investment risk by

• Multiparty Gate assessments

• Non-arbitrary inventories

• Minimizing organizational impact through the process

• Separating ‘scale business measures’ from new business measures

• The Stages are cyclical and begin and end with discovery

Company processes are built to scale, new products have different criteria

Discovery Leadership Line

Discovery Compet it ive Line

PrelaunchMLP Line

Testing & ValidationMVP Line

Development Start

Business Case

Hypothesis

Disocvery

Time /

Capa

bility

TIME / INVESTMENT

Ownership through the phases

7

Core segment growth

Competitive –Leading Product

Hypothesis –MLP for

Existing Clients

Diversification Quadrant

Existing New

Exis

ting

New

Markets

Products

• Solution consultants

• Existing Products, Existing Markets• High alignment with persona’s (back office)• Platform stabile• Requirement Validation simple• Known buyer process• Known commercial model• Existing investment

• Existing Products, New Markets• Swat team model• Joint Development projects• High alignment with persona’s (back office)• Similar buyers process• Transferable commercial model• Transferable investment

Ownership through the phases

8

Core segment growth

Competitive –Leading Product

Hypothesis –MLP for

Existing Clients

Diversification Quadrant

Existing New

Exis

ting

New

Markets

Products

• Global Solutions Management

• Existing Products, New market• Only when:

• New commercial model• New persona’s• New buyer process

• New Product, Existing Market• High alignment with clients but new persona (use cases)• Platform requires net new capability• Requirement Validation complex• Buyer process not completely known• Potential new commercial model• Net new investment

• New Product, New Market• Only when high alignment to strategy – synergy (ADDS

+ ACD to Depository banks) – minimal net new investment