Entrepreneurs use a set of approaches and tools to assess the viability and potential of ideas and profit from them by developing and launching products. Cooper’s stage-gate model is one such approach that is key to any product or service in the commercial or non-commercial sector. Cooper’s stage-gate model is critical to the processes and performance of an organization as it reduces production errors and therefore saves the company from losses.
Cooper’s stage-gate model is one of the most frequently used tools in the project development process. This model is based on the fact that any project is broken down into stages that make up a cascade, and to move from one stage to another, managers must go through the “gate” (Cooper, 2010). These gates are critical points for deciding whether to proceed to the next stage. Simultaneously, decisions made at these gates have such options as “go”, “kill”, “hold”, or “recycle” (Cooper, 2010). Each of the options should have clearly defined criteria. In other words, a project can move to the next stage, be completed because it is not profitable, withheld to resume at a more appropriate time, or sent back for revision.
Cooper’s stage-gate model is critical because it saves companies the cost and time of developing failing products. According to the model, the zero stage is “discovery”, that is, determining a need for a new product and its central concept (Cooper, 2010). The first stage is “scoping” when the company analyzes the strengths and weaknesses of the idea, the competition in the market, and the value of the product (Cooper, 2010). The gate after this stage is more difficult to pass since many factors can indicate the failure of the concept. For example, creating a new brand of smartphones may be a good idea; however, high competition requires unique qualities of devices attractive to the audience and significant resources to overcome Apple, Xiaomi, and Samsung. Consequently, if the company cannot offer such attributes, the project should be closed, since its continuation requires resources, but it will fail.
The next step is developing a business plan that describes in detail the features of the product, the necessary financial and human resources, and legal and regulatory aspects (Cooper, 2010). Using the example of smartphones, the gate after this stage may not be passed due to legal regulations or too high a cost that would be disadvantageous to the company. However, if the company moves to the next stage underestimating certain aspects, the project will fail and incur losses.
The next stage is product development, which can also have sub-stages. Its result is the creation of a working prototype of the product (Cooper, 2010). All the intended functions and features of the product must work for the project to move to the next stage of testing and verification. This stage requires a more detailed product analysis through technical tests and a focus group of users (Cooper, 2010). Usually, at this stage, the product can go through a series of improvements, such as increasing the battery performance on a smartphone or adding other functions. However, the project rarely fails at this stage if the previous gates have been passed after appropriate analysis. The last stage is launch and implementation, which includes promoting and advertising the product with various marketing strategies (Cooper, 2010). This stage is final but one of the most important as the company estimates preliminary sales volumes prepares products and sells goods. For example, Apple’s press releases of new features ensured the sale of iPhones in the early hours and days of release.
In conclusion, Cooper’s stage-gate model is essential in the work of companies and new product development. The model allows companies to correct errors before their negative consequences appear or complete a project before it causes severe financial losses. Each stage looks at different aspects of the product that must be considered for a successful launch and profit. For this reason, companies must consistently and carefully evaluate every aspect to get past the gate and prevent future product-related failures.
Reference
Cooper, R.G. (2011). The stage-gate Idea to launch system. In J. Sheth & N. Malhotra (Eds.), Wiley international encyclopedia of marketing. Wiley-Blackwell.