In this week’s article, we will explain what happens in each stage of the Stage-Gate process as well as the evaluation criterias of each gate. 

Idea generation refers to the process of turning market and technology insights into innovation and feasible ideas. Ideas would be gathered from various sources such as the product development team, customers as well as the supply chain. This initial preparatory stage helps to determine which project a company wants and is able to carry out. Therefore, it is essential that the customers and suppliers are also involved in this stage as they can provide useful information and insight into the idea. At the end of the idea generation process, the idea will be proposed and screened. If the idea is not worth the investment or does not meet the necessary requirements, the idea will be closed.

Gate 1: Idea Screening

The first gate involves a preliminary screening of the project and determining if the project meets the basic requirements of the company. The screening criteria in the 1st gate include the following:-

• Strategic fit

• Market attractiveness

• Technical feasibility

• Killer variables

• Resource

Idea scoping refers to the process of developing new business opportunities from marker trends, focus fields and raw ideas. It involves developing a quick scope of the project and usually involves basic desk research or detective work. In this stage, both market and technical information is gathered and is usually done within a short time frame and at a low cost. Some of the key deliverables of this stage include the preliminary market assessment, preliminary technical assessment, preliminary product definition, preliminary financial and preliminary business case.

Gate 2: Second Screening

In the second gate, the gatekeepers would reevaluate the project based on the new information obtained in the gate. The screening criteria in the 2nd gate include the following:-

• Strategic importance and fit

• Product and competitive advantage

• Market attractiveness

• Synergies 

• Technical feasibility

• Financial reward versus risk

In stage 2, the business plan as well as the product and market is defined and developed. This stage is extremely crucial as this stage will be the last stage before the product starts development. It is important for project managers to spend their time ensuring everything is well defined and the plans have been properly laid out as the project would start to incur heavy expenses moving forward. In preparation for the gate review, the project manager should also refine and clearly lay out the concept and why this project should be developed. 

Gate 3: Go To Development

The Go To Development gate is one of the most important gate as it is the last point where the project can be canceled before heavy spending is incurred. The screening criteria in the 3rd gate include the following:-

• Market acceptance

• Business Case

• Product performance vs customer requirements

• Resource commitment

• Capital Expenditure

• Operation feasibility assessment

• In-house vs outsource decision

• Product & project risk

In the development stage, the plans that were laid out in the previous stage would be carried out and simple tests are conducted. In this stage, technical work would be carried out to provide a testable product. In addition, the financial and business analysis that was carried out in previous stages would also be updated based on the latest figures obtained from technical, operations, and customer-feedback. One key deliverable in this stage would be a partially tested prototype that has been verified by the customer. The prototype or also known as the engineering build in this stage would generally be developed by the R&D department. 

Gate 4: Go To Test

In gate 4, the development work will be reviewed to ensure that the product’s design and specifications meet what was defined in the previous stage. Screening criteria in the 4th gate would include the following:-

• Technical Development work accomplishment

• Product performance and Alpha Test result

• Customer feedback on Alpha sample

• Updated Finance Analysis

• Approval for Test & Validation plan

This stage covers the product testing and validation after the completion of the development of the product. The team will also look at the manufacturing process and how the product is accepted by customers and the market. Usually in this stage, the prototype or also known as the pilot build would be built in the manufacturing floor and would serve to test the manufacturability of the design. In simpler terms, the pilot build serves to verify if the design can be replicated by production as well as serves as a field test of the product.

Gate 5: Go To Launch

As gate 5 would be that final gate before the product is launched, gatekeepers would generally focus on the quality of the results that were obtained in the Test and Validation stage to ensure that the product is ready to be released for mass production or commercialization. The screening criteria in the 5th gate include the following:-

• Observe if test results from the previous stage are positive

• Expected financial return

• The launch and operations start-up plans remain solid

• Readiness check on all commercial activities to ensure launch readiness

During the project launch stage, the finalized product is launched, commercialized, and marketing is executed. For an effective product launch, communication with sales and marketing is essential. In the product launch stage, the product will be handed over to manufacturing for mass production. It is important to note that the project can still be closed even at the last stage though it is usually very unlikely. 

Gate 6: Post Launch Review

During the post launch review, the product’s performance in the market is reviewed. During this review, the product’s actual performance data such as revenue, cost, expenditure, profits and schedule will be compared with the baseline plan that was set in Gate 3 and 5. In addition, a retrospective analysis of the project will be carried out where the project team comes together to discuss what was done well and what was done badly, what are the lessons to be learnt, as well as what could be improved. Once all activities have been completed and closed, the project team is disbanded and each member would move on to the next project.