Traditionally, organizations have focused on capturing and organizing documents, content, bill of materials (BOM), and specifications for new products. In contrast, PPM emphasizes the human resources (HR) component of NPD, which can drive the success or failure of projects. PPM software uses the following phases to address NPD projects.
1. Planning. Planning enables an organization to share and prioritize ideas, ensure projects are aligned with business and financial goals, and determine resource capacity. PPM solutions facilitate planning by offering Web-based bubble diagrams, "what-if" scenario reports, and collaboration or repository applications to help rank and share ideas.
2. Development. This phase allows managers to build resource teams based on templates; provides quick access to information and collaboration capabilities for team members; and allows access to forecasting, scheduling, and costs reports. PPM solutions contribute to development by providing resource planning tools, dashboard capabilities for visibility and collaboration, and real time executive reporting.
3. Delivery. The delivery phase helps organizations to successfully launch a product by improving collaboration between production and marketing, optimizing marketing by providing a single repository for consistent information, and managing product engagements and installations. In aid of this, PPM solutions provide collaboration tools, workflows, and dashboard technology to view and control all aspects of the product delivery process.
Supporting Stage-Gate with PPM
Though tools that gauge the aforementioned NPD and R&D project phases are important, implementing a best practices framework is also a critical factor in the success of a project. According to Robert G. Cooper's 2001 book, Winning at New Products: Accelerating the Process from Idea to Launch, Stage-Gate is one of the more popular NPD methodologies adopted by organizations seeking to closely monitor the progress of their projects.
(Source: http://www.prod-dev.com/stage-gate.shtml)
Stage-Gate is a best practices road map that divides NPD projects into distinct stages in order to formalize the careful evaluation of projects by management. As the above diagram shows, each stage is divided by decision gates where key decision makers can impose a go or kill command or determine the prioritization of the project at hand.
From the inception of an idea to the launching of a product, a gate acts as a decision point for key decision makers in an organization. Acting as a funnel to determine where resources are best allocated, the gate allows management to confirm if project deliverables are met based on predetermined qualitative and financial criteria. The output of the gate review will determine whether NPD or R&D projects will continue, be cancelled, be placed on hold, or be reprioritized (these outcomes are also known as go, kill, hold, and recycle, respectively). Furthermore, the gate review sets the plan for the next stage in the process.
During these various stages, tasks are executed by project managers and staff. Each stage costs more than the preceding stage, and project commitments are incremental. The following list catalogs the five stages of the Stage-Gate process.
* Stage one involves scoping. This is an assessment of the market adoption and technological merits of the projects.
* Stage two involves building the business case. Stage two is a critical decision point for moving forward with a project based on the product definition, justification, and plan.
* Stage three is development. Plans are translated into actual deliverables, where manufacturing or operations map out marketing, operating plans, and testing.
* Stage four involves testing and validation. This step requires total validation of the product, production process, customer acceptance, and financial viability.
* Stage five is the launch—the complete commercial launch and production of the product.
Stage-Gate imposes discipline on the rather chaotic processes typically found in NPD projects. Stage-Gate also clarifies requirements and manages business risk by breaking resource commitments into stages, thus greatly improving the success rate of NPD projects.
1. Planning. Planning enables an organization to share and prioritize ideas, ensure projects are aligned with business and financial goals, and determine resource capacity. PPM solutions facilitate planning by offering Web-based bubble diagrams, "what-if" scenario reports, and collaboration or repository applications to help rank and share ideas.
2. Development. This phase allows managers to build resource teams based on templates; provides quick access to information and collaboration capabilities for team members; and allows access to forecasting, scheduling, and costs reports. PPM solutions contribute to development by providing resource planning tools, dashboard capabilities for visibility and collaboration, and real time executive reporting.
3. Delivery. The delivery phase helps organizations to successfully launch a product by improving collaboration between production and marketing, optimizing marketing by providing a single repository for consistent information, and managing product engagements and installations. In aid of this, PPM solutions provide collaboration tools, workflows, and dashboard technology to view and control all aspects of the product delivery process.
Supporting Stage-Gate with PPM
Though tools that gauge the aforementioned NPD and R&D project phases are important, implementing a best practices framework is also a critical factor in the success of a project. According to Robert G. Cooper's 2001 book, Winning at New Products: Accelerating the Process from Idea to Launch, Stage-Gate is one of the more popular NPD methodologies adopted by organizations seeking to closely monitor the progress of their projects.
(Source: http://www.prod-dev.com/stage-gate.shtml)
Stage-Gate is a best practices road map that divides NPD projects into distinct stages in order to formalize the careful evaluation of projects by management. As the above diagram shows, each stage is divided by decision gates where key decision makers can impose a go or kill command or determine the prioritization of the project at hand.
From the inception of an idea to the launching of a product, a gate acts as a decision point for key decision makers in an organization. Acting as a funnel to determine where resources are best allocated, the gate allows management to confirm if project deliverables are met based on predetermined qualitative and financial criteria. The output of the gate review will determine whether NPD or R&D projects will continue, be cancelled, be placed on hold, or be reprioritized (these outcomes are also known as go, kill, hold, and recycle, respectively). Furthermore, the gate review sets the plan for the next stage in the process.
During these various stages, tasks are executed by project managers and staff. Each stage costs more than the preceding stage, and project commitments are incremental. The following list catalogs the five stages of the Stage-Gate process.
* Stage one involves scoping. This is an assessment of the market adoption and technological merits of the projects.
* Stage two involves building the business case. Stage two is a critical decision point for moving forward with a project based on the product definition, justification, and plan.
* Stage three is development. Plans are translated into actual deliverables, where manufacturing or operations map out marketing, operating plans, and testing.
* Stage four involves testing and validation. This step requires total validation of the product, production process, customer acceptance, and financial viability.
* Stage five is the launch—the complete commercial launch and production of the product.
Stage-Gate imposes discipline on the rather chaotic processes typically found in NPD projects. Stage-Gate also clarifies requirements and manages business risk by breaking resource commitments into stages, thus greatly improving the success rate of NPD projects.
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