The changing context of innovation management: a critique of the relevance of the stage-gate approach to current organizations

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By Paul Trott, David Baxter, Paul Ellwood and Patrick van der Duin

The stage-gate method was initially developed as a description of the new product development practices within high-performing firms. At its heart the concept is simple: and the flow of activity of a stage-gate includes project action, information generation, analysis and decision. Research has shown that the stage-gate method has been extremely successful in many contexts. The ques- tion of whether the approach is suitable for all projects in all situations is a principal faultline within the literature. Proponents argue that adaptations and evolutions of the stage approach enable it to be universally applied. This paper provides a critical review of the literature and we identify chronic limitations of stage-gate when evaluated against contemporary challenges, includ- ing VUCA (volatility, uncertainty, complexity and ambiguity), environment, digitization and open innovation. We remain critical about whether these contemporary currents are best approached by yet another reconfiguration of stage-gate building blocks. We argue that high uncertainty (caused by these currents) requires the flexibility to change fundamental elements of a project, including the underlying concept and the target market, which means that stage-gate is not well suited to innovation processes addressing these contemporary challenges. We propose a typology to show its suitability.

page: 207 – 227
Prometheus: Critical Studies in Innovation
Volume 38, Issue 2
SKU: 380204

SKU: 380204 Category: Tag:

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By Paul Trott, David Baxter, Paul Ellwood and Patrick van der Duin

The stage-gate method was initially developed as a description of the new product development practices within high-performing firms. At its heart the concept is simple: and the flow of activity of a stage-gate includes project action, information generation, analysis and decision. Research has shown that the stage-gate method has been extremely successful in many contexts. The ques- tion of whether the approach is suitable for all projects in all situations is a principal faultline within the literature. Proponents argue that adaptations and evolutions of the stage approach enable it to be universally applied. This paper provides a critical review of the literature and we identify chronic limitations of stage-gate when evaluated against contemporary challenges, includ- ing VUCA (volatility, uncertainty, complexity and ambiguity), environment, digitization and open innovation. We remain critical about whether these contemporary currents are best approached by yet another reconfiguration of stage-gate building blocks. We argue that high uncertainty (caused by these currents) requires the flexibility to change fundamental elements of a project, including the underlying concept and the target market, which means that stage-gate is not well suited to innovation processes addressing these contemporary challenges. We propose a typology to show its suitability.

page: 207 – 227
Prometheus: Critical Studies in Innovation
Volume 38, Issue 2
SKU: 380204