New Product Development Group: New Stage Gate Process

New Product Development Group: New Stage Gate Process Prepared by: Karyn Liane Dobin April 19, 2003

“Houston…we have a problem” • We have no process • Ok, we have one but it doesn’t work • What would work?

Establish a Vision and a Mission Set Goals and Strategies Research Factors for defining NP Process Must haves for NP Performance Stage-Gate Process Next Steps Overview of Discussion

NPG Vision To be the global market leader in developing new financial market data delivery platforms that meet and exceed our clients needs

NPG Mission Determine where our new product development process has failed, what changes in the process need to made, and successfully implement those changes in order to fulfill our Vision

NPG Goals • Re-organize Product Marketing and Management team into a superior team that believes in the new process • Determine business lines for NPG focus • Discontinue distribution of product platforms that don’t meet revenue targets • Create products that meet our clients needs and have real potential to meet our revenue targets • Ensure our data content provided is #1 or #2 in the market • Always be ahead of our competition in utilizing new technology to deliver market data products to our clients

NPG Strategies • Meet with Executive team and ensure their full support in implementing a new process • Define what businesses within the market data distribution industry we want to be in • Research those businesses, and ensure there is potential to make a profit that meets our revenue targets • Conduct research to determine clients needs within those business lines • Determine what clients want to pay for those services • Determine if we can create products within our budget that will meet our clients needs • Determine if we can deliver product at a cost that would meet company profit targets

NPG Strategies Basically, create a winning process from idea to launch

Factors for defining New Product Process • Understand our user needs • Establish products strategic alignment with strategy of Moneyline Telerate • Complete a competitive analysis and establish product superiority • Create priority decision criteria list • Risk assessment • Product positioning • Establish product channel and support • Ensure product is endorsed by upper management • Get total organizational support

Marketing Research Needed Earlier • Do a Product Failure Study • Do a Product Success Study • Compare the differences between the two • Adopt a systematic new product process • Doing the projects right: define the road map from idea to launch and follow it, this way project teams will build in success factor by design, rather than by chance • Doing the right projects: just as important doing the projects right • Need extensive and careful analysis of the market BEFORE taking on new products

Stage 0 • Establish strategic direction Discovery • New Idea Generation Post Launch Review Gate 1 • Does idea meet strategic direction? Stage 1 • Scope Idea Stage 5 Gate 2 Stage 2 Gate 4 Gate 3 Stage 4 Stage 3 Gate 5 Ready to go to testing? Testing and validation Specific Criteria Check Build Business case If we build it, will they come? Will clients buy? Development Launch New Process: Use Stage-Gate

Get company strategic direction Product failure and success studies, with comparison between the two Get buy-in from for new process from executive team for new process, including commitment of staff and resources Determine accountability Stage 0 Stage 0: Establish Company Strategic Direction

Feeding from database of feedback from clients wish list items Sales feedback Internal suggestions Marketing research come up with ideas of innovative products Discovery Discovery: New Idea Generation

Gate 1: Does Idea Meet Strategic Direction? • Filter out ideas that don't meet strategic direction Gate 1

Do they meet the client need? Can they be built within established budget? Can we bring the product quickly to market? Do we know any competitors currently building similar product? Do we think clients will pay for this? How will this be a solution for clients to make money? Contact small group of close clients and ask them for their opinion Stage 1 Stage 1: Scope Ideas that passed Gate 1

Gate 2: Check against Specific Criteria? • Gather a team with accountable representation from development, operations, finance, legal, marketing, and sales, and determine if ideas feasible • What does each department need to move forward? • Check id idea meets the specific criteria to move forward to building the business case Gate 2

Do in-depth research and investigation Competitive analysis SWOT analysis Determine target market Survey market Positioning Potential profit analysis Cost and time frame to build Define team to build Define responsibilities Define exact features of product, unique sales points Stage 2 Stage 2: Build Business Case

Gate 3: If we build it, will they come? • Present business case from stage 2 to the team established in gate 2, and determine if based on information if we think if we build it, clients will buy it and we can meet our revenue goals. Gate 3

In a parallel process develop: Product Proto-type Working model Alpha Operations process Help desk support process Marketing materials Sales procedures Test with small group of clients: Are USP important Survey clients Stage 3 Stage 3: Development

Gate 4: Ready to go to testing? • Gather the established team, review the developed product, and determine if we feel the product is ready to move forward to the testing stage. • Does the product meet the defined goals? • Is it stable? • Does the market still want this product? Gate 4

Marketing Process Sales Process Process to Deliver to clients Product functionality Help desk support Operation support Survey clients on success/failure of processes, will they buy? Survey internal processes Stage 4 Gate 4: Testing and Validation of Entire Process

Gate 5: Will Clients Buy? • Gathering the team, determine if the testing phase was successful • Are we ready to launch? • Do clients still want this product? • Will they pay for the product? Gate 5

Stage 5 Stage 5: Product Launch

Establish metrics to determine success: Where did we make mistakes? Where did we go off the process? What did we do right? How should we change the process for next time? Final business evaluation to determine if the client met the original goals of market share, profitability and client fit Post Launch Review Post Launch Review

Must haves for NP Performance • High Quality New Product Process: • Steps, activities, and decision points that new products follow from idea to launch to beyond • New Product Strategy: • Set goals/objectives for business total new product effort • The role of NP is clearly communicated to all • Clearly defined areas for strategic focus • NP effort has a long-term thrust and focus • Resource Commitment • people and money are committed by upper management

Next Steps • Get the buy-in from Executive management • Put Stage Gate process in place • Do the research! • Build winning products • Keep revisiting the process, to make sure we are on track to meet vision

New Product Development Group: New Stage Gate Process