ppm software for product development: how and when to kill projects

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Stage-Gate® and Innovation Performance Framework® are registered trademarks of Stage-Gate Inc.

4

Cooper, Winning at New Products (4th Edition).

Project Rank (Priority

Level)

Total Project

Score

Portfolio

Balance Factor

Adjusted Total

Project Score

Soya-44 1 80 1.10 88

Encapsulated 2 82 1.00 82

Legume N-2 3 70 1.10 77

Spread-Ease 4 75 1.00 75

Charcoal-

Base

5 80 0.90 72

Projects on

Hold

N2-Fix 1 80 1.00 80**

Slow-Release 2 70 1.10 77*

Multi-Purpose 3 75 .90 68

etc.. etc..

(Target = 30%)

(Target = 10%)(Target = 20%)

New Products19.0%

Improvements37.0%

Maintenance/Fixes22.0%

Cost Reductions15.0%

Fund. Research7.0%

(Target = 30%)

(Target = 10%)

By Project Type

Pro

bab

ilit

y o

f T

ech

nic

al

Su

ccess

Reward (NPV)

High

$10 M 8 6 4 2 0

Pearls Bread and Butter

OystersWhite

Elephants

Soya-44

Encapsulated

Legume

N-2

Spread-Ease

Charcoal-

Base

Slow-Release

Version 4

A

B

C

D

Vigor-B

Idea-to-LaunchProcess Management

PortfolioManagement

IdeaManagement

InnovationStrategy

1. The point of killing projects early in the gated process is to save time, money, and resources – the goal is getting successful products to market NOT the preparing project deliverables for gate meetings

2. Evaluation criteria for both the gate and the portfolio check should be balanced based on your innovation strategy and product roadmaps, NOT solely focused on financials

3. Having the right resources available at the right time is critical to the go/kill decision – no resources, no go

4. To improve portfolio performance and reduce time and cost associated with gate preparation, consider Stage-Gate Ready certified software to streamline your gated commercialization process

Key Takeaways to Kill with Confidence