Lessons Learned: an Entrepreneur Using Stage-Gate™ to Guide a Project

Turning the black whole of innovation into a quality process

• Quality management

• What is and Why use Stage-Gate

• Invasive bighead and silver carp pesticide project as a case study

• What is gained by using Stage-Gate

My beliefs on Business

• Cooper’s Stage-Gate™ is a process allowing for quality management of investment/product development decision

• Porter’s Five Forces is a process for market research of a company, industry or market.

• Plan Do Check Act!

“In God we trust. All others bring data” W.

E. Deming

• What does the data mean?

• What actions are needed to meet my goal?

“Insanity: doing the same thing over and

over again and expecting different

results” Albert Einstein

Discovery Stage

Stage

2

Build

Business Case

Stage

4

Testing & Validation

Gate

3

Stage

5

Launch

Gate

4

Stage

3

Development

Gate

2

Post-Launch Review

Source: R. Cooper, Winning with New Products (2001)

Stage-Gate™ is a Process that guides an innovation project to a speedy conclusion

Interim Approval

Approve Project

Review of Development Results

Gate

1

Product Release

Gate

5

Scoping

Stage

1

4

Why Innovation Process is Important

ROI Focus on Solving a Problem

Choose the Right Problem

Develop Competitive Advantage

Minimize Expense Ensure

dealing with “Brutal Facts”

Keeps Project Focused

Speed to Market

The Scope: Porter’s 5 Forces

USGS

MJSTI Rotenone

Federal Government accepts that

Asian carp are here and stops

trying to control

FWS

State Conservation

Agencies

Prize too small & barriers to entry

too high for corporations

Specialty Chemicals

Commodity Chemicals

Process/Toll Mfg.

Market Competition, market size

~$5 MM

Indirect Competition

Suppliers

Potential New Entrants

Customers

1

3

2

4 5

The Business Plan If Asian carp establish in the Great Lakes, ~$7 billion water recreation industry is jeopardized

Problem: No safe pesticide, Federal government spent $260 million from 2008 to 2013, pesticide needed to control Asian carp population, one of several tactics to control Asian carp

Goal: To make money killing Asian carp, Size of prize: ~$5 million

Specifications: Effective & Selective; Environmentally Safe; Low Cost

The Competitive Advantage: Potential for Patent, some protection for new application pesticide filing

Stage-Gate™ Progress

Scope

• Understand market including competition, propose technical ideas

• Outline market potential in dollars and estimate profitability

Business Plan

• Detailed market report, including product specifications, understand risks, match capabilities to project requirements

• Development plan

Development

• Made prototypes, juvenile and adult bighead carp consumed

• Failed to prove toxicity to bighead carp

Testing and Validation

• Obtain EPA and State agency approval

• Scale up production

• Sales Plan approved

Sell

• Obtain orders

Project Capabilities Analysis

Capability Plan Actual Known Steps, Actual

Business Mgn; Mkt Research, Plan

MJS Completed, took and used Kauffman’s FastTrack coarse

Known 0

Specifications MJS Developed & followed Developed 0

Technical Concept MJS MJS, research Unknown 2

Industry Contacts Develop Obtained as needed, Networking Developed 0

Funding Indiegogo, grants

Consulting funded project, limited resources

Results, Contacts

2

Fish Testing University Harrison Fishery, USGS Known 1

Technical expertise University USGS, Harrison, Contacts Developing 1 to 2

Manufacturing Outsource, 2 NDAs

Equipment Mfg. to make prototypes, Mfg. interested, RM supported with samples

Known 0

Manufacturing Understanding

MJS knowledge

MJS knowledge, Equipment Mfg. Known 0 to 1

Legal Outsource Outsourced Known 0 to 1

Regulatory Outsource Networking, EPA, USGS EPA 1

What went well

Wrote and followed a plan

“Brutal Facts!”

Listen, Ask, and Learn, Learn, Learn!

Analyzed results and made changes, consistent with plan

What could be improved Filed Provisional

Patent

Lack of Funding

Limited Fish Technical Resources

Spent 3 to 4 months Consulting for funds

Limited Fish Toxicity Discussions

Reworked Project Analysis

Capability Plan Known Steps, Actual

Actions Steps, Rework

Business Mgn; Mkt Research, Plan

MJS Known 0 Update market 0

Specifications MJS Developed 0 0

Technical Concept MJS Unknown 2 Research fish physiology 1

Industry Contacts Develop Developed 0 Increased 0

Funding Indiegogo, grants Results, Contacts 2 Partnership 1

Fish Testing University Known 1 USGS agreement 0 to 1

Technical expertise University Developing 1 to 2 USGS, Partnership 1

Manufacturing Outsource, 2 NDAs Known 0 Contacts 0 to 1

Manufacturing Understanding

MJS knowledge Known 0 to 1 Experience, contacts 0 to 1

Legal Outsource Known 0 to 1 0 to 1

Regulatory Outsource EPA 1 Contacts 1

Discovery Stage

Stage

2

Build

Business Case

Stage

4

Testing & Validation

Gate

3

Stage

5

Launch

Gate

4

Stage

3

Development

Gate

2

Post-Launch Review

Source: R. Cooper, Winning with New Products (2001)

Stage-Gate™

Interim Approval

Approve Project

Review of Development Results

Gate

1

Product Release

Gate

5

Scoping

Stage

1

13

Rework or Kill

By Following the Stage-Gate™ Process

I had a Guide

Keep focus on goal & moving

project forward

Identified Key Issues and

forced their resolution

Minimized the Loss

Stage-Gate™ is Speed to Market!

Thank You for your support

• Harrison Fishery, (660) 423-5482: Curtis Harris and Brandon Handquist; if you need fish, please call Harrison

• USGS: Duane Chapman, Mark Gaikowski, Robin Calfee, Jon Amberg and Ed Little

• Especially my wife

MARKET RESEARCH PROJECT MANAGEMENT DISRUPTIVE SOLUTIONS

Maurice Sadowsky

MJSTI Corporation

Overland Park, KS

mjsadowsky@yahoo.com; 913-239-9037, Cell: 302-559-2998