Agile-Stage-Gate: New idea-to-launch method for manufactured new products is faster, more responsive

Abstract

New evidence reveals that Agile methods, until now used primarily for IT developments, can be integrated with traditional gating approaches to yield significant potential benefits for manufacturers of B2B physical products. Indeed, this new Agile-Stage-Gate hybrid approach represents a significant change to our thinking about how new-product development should be done since the introduction of today's popular gating systems thirty years ago!The article shows how Agile emerged in the IT industry and early attempts to integrate it with gating models, also in the IT world. The article moves on to the recent use of this hybrid model by manufacturers, and the results achieved by early adopters when implementing this new system in industries from food to heavy equipment. In terms of implementation, the details of the new Agile-Stage-Gate system are presented, including the “Power of Nine” – the three key artefacts (such as sprints and scrums); three important tools (such as sprint backlogs and burndown charts), and the three vital roles (such as the product owner and the scrum master) needed to make it work.Agile from the IT world cannot be directly integrated into Stage-Gate for physical products without some important modifications, however. These needed adjustments – such as redefining a “done sprint” and how to present versions of the product or “protocepts” for continuous customer feedback – are outlined, complete with a case study from an equipment manufacturer. Additionally, the article identifies and deals with ten important issues and apparent inconsistencies that arise when implementing this new system for B2B products.