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The seven principles of the latest Stage-Gate method add ...

The seven principles of the latest Stage-Gate method add up to a streamlined, new-product idea-to-launch process. B Y R O B E RT G . C O O P E R. 18 R MM March/April 2006 ave you ever wondered why The ADL study provides insights into H some companies make product innovation seem so easy gener- ating one big winner after another? Here is NPD productivity by industry. It looks at output (five-year sales from new products as a percentage of company sales) and a startling fact: New-product development input (research and development spending (NPD) productivity in the top performing as a percentage of company sales). One company is five times what it is in the startling conclusion is the difference in average company. The top performer gets productivity between top performers and five times as much new-product output for the rest, regardless of industry. On aver- the same investment, according to the age, there's an almost 1,200% difference Innovation Excellence Study 2005 conducted between the most productive (top 25%.)

18 MM March/April 2006 The seven principles of the latest Stage-Gate® method add up to a streamlined, new-product idea-to-launch process. BY ROBERT G. COOPER www.stage-gate.com

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