Implementing stage-gate system for new product development in Company X / Marvin Joseph D. Relente

Year : December 18, 2017
Number of Pages : 54 leaves
Adviser : Prof. Ma. Elizabeth Francisco

Abstract:

Company X disrupted the eikawa industry by introducing an online platform. In comparison to traditional eikawa that is in-person, online eikawa is more convenient and cost-efficient. The growing popularity of the online eikawa service spurred competition, and the growing size of organization caused infighting. This affected Company X's overall performance and ranking in different benchmarks. To recoup, if not maintain its lead, Company X's strategy is to introduce more innovative products. However, well-defined activities and decision making framework are critical for new product introduction (Cooper & Edgett, 2002). To improve manageability, predictability and objectivity, the project looked into how Company X can adapt the stage-gate system. Stage-gate or phase review system is one of the common elements of a new product development framework.

Collectively known as the design part, the project implemented the first three steps of the regulative cycle. The regulative cycle is a five-step problem solving model that is used to analyze and find a solution to a problem within a specific circumstance. Intervention, and evaluation, the last two steps of the cycle were not included in the scope as it requires more resources than what can be allocated for this project. Interviews, consultations, analysis of documents internal to Company X and literature review were the main source of information.

Appointment of a stage-gate manager, involvement of the top management in designing the stages and gates, and redesign of the organizational and project management structure are the main three action plans recommended to lay the groundwork for implementing the stage-gate system. The stage-gate manager, in line with Company X's practice of assigning a specific point person of accountable for any endeavor, will help ensure follow-through and consistency in implementing the system. Involvement of the top management, and change in organizational and project management structure, as cited in literatures reviewed, are necessary for alignment. This will promote cross-functional collaboration, and coherence.

The project presented the details necessary, at the theoretical level, for implementing the stage-gate. It was further recommended for Company X to look into the readiness of its members, especially of the key enablers, in terms of mindset and motivation to realizing the change needed.