Product development paradigm

Saturday, 30 September 2023

21.23
Denominators (Common Themes):
1. Innovation and Development Processes: Each document touches upon methodologies and
processes related to innovation and product development. Whether it's the Agile–Stage-Gate
hybrid model, the lean start-up methodology, design as brokering of languages, or the evolution of
the Stage-Gate process, each article emphasizes the importance of structured yet flexible
approaches to innovation.
2. Cross-Functional Collaboration: Multiple documents highlight the importance of cross-functional
teams and collaboration. Whether it's in the context of design-driven innovation, lean start-ups, or
the Third-Generation Process, the integration of diverse teams and expertise is emphasized.
3. Customer-Centric Approach: The importance of aligning product development with customer
needs, feedback, and preferences is a recurring theme. This is evident in the lean start-up's focus
on customer feedback and the design-driven innovation's emphasis on product meanings.

Differences:
1. Focus of Innovation:
• The Agile–Stage-Gate hybrid model discusses the combination of Agile methodologies with
traditional gating processes for physical new products.
• The lean start-up methodology emphasizes rapid iteration based on customer feedback
and pivoting when necessary.
• The design as brokering of languages article focuses on design-driven innovation, where
the novelty of design language is prioritized over functionality.
• The article on the evolution of the Stage-Gate process discusses the transition to a more
fluid, adaptable, and flexible system for product development.
2. Methodologies and Approaches:
• The lean start-up methodology emphasizes experimentation, customer feedback, and
iterative design.
• The design as brokering of languages article emphasizes the role of designers as brokers of
languages, conveying specific meanings or messages through design.
• The Third-Generation Process in the Stage-Gate evolution article introduces concepts like
fluidity, fuzzy gates, and conditional decision-making.
3. Applications and Examples:
• The Agile–Stage-Gate hybrid model provides examples like the Metamorfosi system by
Artemide.
• The lean start-up methodology discusses modern tools and platforms that reduce the cost
of software development.
• The design as brokering of languages article provides insights into how Italian firms
leverage design-driven innovation.
• The article on the evolution of the Stage-Gate process provides examples from companies
like Johnson & Johnson, P&G, and Hewlett-Packard.
The Agile–Stage-Gate Hybrid Model: A Promising New
Approach
1. Improved Communication and Productivity:
• Communication: The Agile–Stage-Gate hybrid model emphasizes the importance of
communication, especially within teams. This is consistent with what has been observed in
the IT world, where Agile methodologies prioritize regular communication between team
members, stakeholders, and customers.
• Productivity: The hybrid model has shown to enhance project productivity. This could be
attributed to the combination of Agile's iterative approach and the structured decision-
making process of Stage-Gate. By merging these two methodologies, teams can quickly
adapt to changes while ensuring that the project remains on track and meets its objectives.
[Page 5]

2. Benefits of the Hybrid Model:

• Faster Response: One of the primary advantages of the hybrid model is its ability to quickly
adapt to changing product or customer requirements. This is a hallmark of Agile
methodologies, which prioritize flexibility and responsiveness.
• Improved Team Communication: As mentioned earlier, communication is a key benefit. The
hybrid model fosters an environment where team members communicate regularly,
ensuring everyone is aligned and aware of project updates.
• Enhanced Project Productivity: The structured nature of the Stage-Gate process, combined
with Agile's iterative approach, allows for continuous feedback and improvement, leading
to increased productivity.
• Better Alignment: The hybrid model ensures that the project is better aligned with its
requirements, ensuring that the end product meets the needs of the customer or market.
[Page 5]

3. Research Questions:
• The document highlights the need for academic research into the hybrid Agile–Stage-Gate
methods, especially for physical new products. The business community, particularly in
Europe, seems to be leading the way in this area, with academia lagging behind.
• Key questions posed include:
o Combining Agile with Traditional Gating: Is it possible to effectively merge Agile
methodologies with traditional gating processes? This is crucial as many firms
already employ traditional gating approaches and have seen benefits from them.
o Benefits of the Hybrid Model: The document questions whether a hybrid model can
offer more advantages than when either Agile or Stage-Gate is used individually.
[Page 3]

4. Quantitative Metrics:
• Some firms that adopted the hybrid model observed notable improvements in their
processes:
o Improved Efficiencies: The hybrid model streamlined processes, leading to better
utilization of resources.
o Reduced Work Effort: There was a reduction in the work effort required per project
by about 25%. This could be due to the elimination of redundant tasks and better
task management.
o Decreased Rework: The amount of rework required was reduced by about 20%.
This suggests that the hybrid model leads to better initial outcomes, reducing the
need for revisions. [Page 5]
Why Lean Start-up Changes Everything
1. Lean Start-Up Methodology:
• The traditional approach to launching a new enterprise, whether a tech start-up, a small
business, or an initiative within a large corporation, has been fraught with risk and
uncertainty. Research indicates that 75% of all start-ups fail.
• The "lean start-up" methodology has emerged as a counter to this traditional approach. It
emphasizes:
o Experimentation over elaborate planning.
o Valuing customer feedback over intuition.
o Iterative design over the traditional "big design up front" development.
• Core concepts of the lean start-up methodology include the "minimum viable product" and
"pivoting."
• This methodology is still in its early stages of adoption, similar to where the big data
movement was five years prior to the document's publication. [Page 4]

2. Customer-Centric Approach:
• Lean start-ups focus on listening to customers. During the customer development phase,
start-ups search for a business model that works. If feedback indicates that their business
hypotheses are incorrect, they either revise them or pivot to new hypotheses. This iterative
process ensures that start-ups are continually aligned with customer needs and
preferences. [Page 6]

3. Agile Development:
• Lean start-ups practice agile development, which originated in the software industry. This
approach complements the customer development phase.
• Agile development eliminates long product development cycles by developing products
iteratively and incrementally. This ensures that products are developed in response to real
customer needs and feedback. [Page 5]

4. Cost-Effective Development:
• Modern tools and platforms have significantly reduced the cost of software development.
Open source software and cloud services have made it more affordable for start-ups to
develop and launch products.
• Hardware start-ups can also benefit from offshore manufacturing, eliminating the need to
build their own factories. [Page 8]

5. Impact on the Broader Business Landscape:

• The lean start-up methodology has the potential to benefit not just tech start-ups but also
traditional small businesses. If widely adopted, it could lead to increased growth, efficiency,
and a positive impact on GDP and employment.
• Institutions like the U.S. National Science Foundation have started using lean methods, and
MBA programs are incorporating these techniques into their curricula. [Page 8]
Design as Brokering of Languages
1. Radical Design-Driven Innovation:
• Design-driven innovation focuses on the novelty of a message and design language over
the novelty of functionality.
• This type of innovation is not pulled by the market but is the result of a vision of a possible
future. It's about making proposals to people rather than just meeting explicit market
demands.
• Such innovation is seen as a design-push activity, driven by a vision or ideology. [Page 5]

2. Metamorfosi System by Artemide:

• Artemide introduced the Metamorfosi system, which emphasizes the concept of "human
light." This system is based on the idea that light is responsible for emotional conditions,
thoughts, and memories and is therefore connected with the user’s well-being.
• The Metamorfosi system was developed through a threefold process:
1. Research on New Languages: Artemide explored new systems of values and
product languages. A workshop was conducted to explore new meanings of light
related to biological, psychological, and cultural needs, leading to the vision of
“human light.”
2. Research on New Technologies: Artemide developed a technology kit that included
dichroic filters and a computer for controlling the lamps and customizing/storing
different light scenarios.
3. Product Development: Designers were provided with the basic message and
technology kit to develop lamps based on the Metamorfosi concept. [Page 8]

3. Designers as Brokers of Languages:

• Designers act as brokers of languages, serving as gatekeepers in the movement of product
languages and symbols across industries and contexts.
• They provide access to knowledge of unexpressed dynamics of socio-cultural models,
helping companies understand, anticipate, and influence the emergence of new product
meanings.
• The unique way a company involves its designers can be a source of competitive
advantage. [Page 9]

4. Innovation Beyond Functionality:

• Products like the Metamorfosi lamp by Artemide are examples of innovations that go
beyond functionality. The lamp's design emphasizes the emotional promise of light rather
than just its physical appearance or style.
• Design language, which includes signs, symbols, and icons, is used by designers to convey
specific meanings or messages. [Page 3]

5. Challenges of Radical Innovation:

• Radical innovations of meaning are not typically derived from classic market analysis,
surveys, or focus groups. Such innovations are not explicitly demanded by users but are the
result of a vision of a possible future. [Page 5]
Whats Next. After State-Gate
1. Experienced Team Members:
• Experienced team members can effectively identify critical tasks and best practices. Not
every project requires every activity. The Gorilla® Glass, used in Apple’s iPad, was
developed using this method. [Page 6]

2. Flexible Criteria for Go/Kill Decisions:

• Traditional gating processes often rely on financial criteria for Go/Kill decisions. However,
for context-based models, it's essential to rethink these criteria. Financial models often lack
accurate data, leading to incorrect business cases, especially for highly innovative
initiatives. Progressive firms are adopting more flexible criteria, emphasizing strategic fit,
competitive advantage, and market potential over profitability metrics. [Page 6]

3. Simplicity in Processes:
• Johnson & Johnson revised its idea-to-launch process to reduce bureaucracy and non-
value-adding work using Lean Six Sigma methods. The company's business cases, which
used to be extensive documents, have been simplified significantly.
• P&G's SIMPL process has been streamlined, reducing the volume of deliverables.
• Praxair uses lean methods to identify and eliminate time wasters in the development stage.
[Page 8]

4. Accelerated Process:
• The goal of next-generation idea-to-launch systems is to speed up projects. Simple steps,
like removing time wasters through value-stream analysis, can significantly reduce the time
to market. [Page 8]

5. Custom-Tailored Methodology:
• Leading firms have integrated elements of the Agile Manifesto into their Stage-Gate
processes. The process is flexible and efficient, with every project having its custom-
tailored methodology. This approach ensures no work is included that doesn't add value.
However, project teams need to be experienced for this approach to be effective. [Page 6]

6. Different Development Processes:

• Hewlett-Packard (HP) identified that its traditional phase-review process was not suitable
for fast-moving markets. As a result, HP defined three development processes: an
emergent model for start-ups, an agile model for growth sectors, and the traditional phase-
review system for mature markets. [Page 5]
Third Generation New Product Processes
1. Fluidity in the Process:
• The Third-Generation Process is fluid and adaptable, with overlapping and fluid stages for
greater speed. This adaptability allows for a more dynamic approach to product
development, ensuring that projects can move forward without unnecessary delays. [Page
7]

2. Fuzzy Gates:
• The concept of "fuzzy gates" introduces conditional Go decisions rather than absolute ones.
These decisions are dependent on the situation and allow for flexibility in the decision-
making process. For instance, a project might receive a "Conditional Go" based on partial
information, with the understanding that missing information must be delivered by a
specific date. [Page 7-8]

3. Focus on Prioritization:
• The Third-Generation Process emphasizes prioritization methods that consider the entire
portfolio of projects. This approach ensures that resources are focused on the "best bets"
or projects with the highest potential for success. [Page 7]

4. Flexibility in the System:

• Recognizing that each project is unique, the Third-Generation Process is not rigid. Projects
have their own routing through the process, allowing for customization based on the
specific needs and challenges of each initiative. [Page 7]

5. Parallel Processing:
• The new product models feature parallel processing, where activities are undertaken
concurrently rather than sequentially. This approach allows for more activities to be
completed in a given period, leading to faster project completion. [Page 4]

6. Cross-Functional Teams and Decision Points:

• Modern stage-gate processes require a cross-functional team effort, involving R&D,
Sales/Marketing, and Manufacturing. Decision points or gates are also cross-functional,
ensuring buy-in and commitment from all relevant departments. [Page 4]

7. Conditional Decision Making:

• The Third-Generation Process introduces the concept of "Conditional Go," where decisions
are made based on partial information. This approach allows projects to move forward
without loss of time, provided that certain conditions are met in the future. [Page 8]