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The Success Drivers using Agile Stage-Gate Management on New Physical Product
Development.
INTRODUCTION
1.1 Research Context
International manufacturers implement product differentiation strategies to curb the strong global
competition they encounter in the business world. Due to this rationale, companies strategize on
developing new technologies and products to achieve a competitive advantage. The advancement
of technology results in a more complex and less predictable world, especially in the business
arena. Therefore, companies employ new practices such as the Agile concept (for physical
products), ideation, stage model, lean product development, etc. Notably, there is an immense
explosion of interest in Agile methods for new product development due to the widespread belief
that Agile is a fundamental technique in generating substantial benefits for firms (Salvato et al.,
2020, pp 631-647).
In this context, the research on the new product development success drivers is still a
bone of contention because product innovation is crucial to business triumph. Yet, the keys to
success remain quite elusive. The tremendous pressure for corporations to become more
innovative-oriented in their activities prompted the development of agile product development
models in the 1980s. Agile models were created in response to sequential stage-gated models,
and they feature a more holistic approach. Multidisciplinary teams collaborate in parallel
throughout the product development process. Saeema Ahmed (2015) argued that agile product
development has six characteristics (p. 13).
As aforementioned, stage-gate models are primarily used in industrial businesses. Stage
gated models are characterized as an operational or a conceptual framework. These models are
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used to reduce product development projects cycle time and costs, manage innovation efforts,
and improve the chances of business success. The fact that capital investments are often made at
an early stage in developing physical products is a distinguishing feature. Decisions made during
concept design commit a significant percentage of a project's ultimate cost. In this regard, this
paper majorly focuses on the Agile Stage-Gate Management (ASGM) success drivers in
implementation on New Physical Product Development.
1.2 Objective Research Questions
The overall objective of the research is to analyze and examine the Agile Stage-Gate
Management (ASGM) success drivers in implementation on New Physical Product
Development. However, the specific objectives of this research are;
i. To examine if the Agile approach and Traditional Stage-Gate approach are mutually
exclusive or just incompatible.
ii. To evaluate the impact of the Agile Stage-Gate model on new product development in the
manufacturing world.
iii. To evaluate the challenges encountered by firms when implementing the Agile Stage-
Gate Model.
In this context, the research questions being asked and analyzed are;
RQ 1 Is the Agile approach and Traditional Stage-Gate approach mutually exclusive or just
incompatible?
RQ 2 To what extent does Agile Stage-Gate Model (ASGM) deliver positive results in
developing new physical products in the manufacturing world?