INNOVATION
Incorporating Agile Innovation Into Stage- Gate
By Senorine Wasike
In a popular Harvard Business review article titled ' Embracing Agile ,' Darrell K . Rigby , Jeff Sutherland , and Hirotaka Takeuchi discussed the growing significance of Agile Innovation beyond the software industry . The authors demonstrated how agile innovation methods significantly increased the success rate of new launches in software companies . Agile methodologies emerged from software development companies over 30 years ago , so many IT professionals will tell you that Agile is not new . Some of the similar concepts to agile are lean startup , design thinking , scrum , and Kanban .
The global coronavirus pandemic has forced many companies to rethink speed , agility , flexibility , and adaptability in all business areas . This article discusses the application of agile innovation in corporate organizations that typically use the stage-gate process to manage the new product development process . Adopting agile does not mean abandoning stagegate . Many multinational companies have incorporated lean six sigma into the NPD process in an attempt to achieve agility in new product development .
The Stage-Gate Innovation Process
Robert Cooper popularized the stage-gate process in the late 1980s . Companies that embraced the process outperformed their industry rivals , forcing many companies to adopt the stage-gate process as an effective way of new product development . The typical stage-gate process has phases and gates . All the activities happen within the phases , and the gates act as decision points . Approval to move from one phase to another is given through the decision gates .
The shortening product lifecycles have forced companies to improve on speed to market . Today ' s stage-gate process incorporates cross-functional teams , with most activities happening in parallel , not in a series . The process ' s governance is clear with an empowered team , project sponsors , and gatekeepers to support timely decision-making and launch . Despite the evolution , agile methods are proving to be better and are guaranteeing higher innovation success rate .
How Agile Innovation Works
Agile uses iterative methods to progressively release completed projects by incorporating consumer feedback throughout the process . The blend of technology with leading-edge principles and practices of innovation management is core to agile methodology . Agile views innovation not just about new products but also about speed support by continuous iteration or improvements . A good example is mobile phone manufacturers and software developers who launch new products and perfect as they go .
Difference Between Agile Innovation and Stage-Gate
In the software industry , agile technologies compress innovation projects cycle times by up to 75 % from 18 to 36 months to under eight months . Unlike stage-gate that may have countless initiatives , urgent deadlines , and frequent project meetings , agile innovation is not about countless initiatives . Frequent project meetings prioritize two or three initiatives and create an environment in which agile flourishes . Critics of the stage-gate process argue that the process is too planned and rigid to handle the competitive global environment within which companies operate . Leaders seeking to capitalize on agile must ( a ) learn how agile works , ( b ) understand where agile does or does not work , ( c ) allow master teams to customize their practices , ( d ) destroy the barriers to agile behavior , and ( e ) practice agile at the top .
Why Corporates have not Incorporated Agile Innovation
Large organizations face many challenges , such as efficiency , scaling up , and profit sustainability , which often stifle innovation . Bureaucratic processes bog down corporates and suppress creativity , unlike agile methodology advocates who see themselves as small and lean . One critical challenge of adopting agile in large organizations is that large firms work with cross-functional teams , unlike small firms that execute activities within small teams .
The other challenge is that most large organizations have embedded project management practices that they will not likely abandon completely . These companies find ways for agile to co-exist with current methodologies . Despite all the modifications , the process remains linear and only incorporates consumer feedback post-launch .
Bringing it all Together
Innovation success belongs to organizations that create change , adapt to change , and thrive on change . Going into the future , the question is not whether corporates should embrace agile innovation . Based on the above discussions , it is clear that agile innovation is the future . With agile technologies compressing innovation projects cycle times by up to 75 % from an average of 18 to 36 months to under eight months , adopting agile is a matter of when , not if . Has your organization adopted agile innovation ?
Senorine Wasike is a Strategy and Innovation scholar with over 10 years corporate experience . She currently heads innovations at Kenya Wine Agencies ( KWAL ). You can commune with her on email at : Senorine . Wasike @ gmail . com
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