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Technology Stage-Gate™:
A Structured Process for
Managing High-Risk New
Technology Projects
Greg M. Ajamian and Peter A. Koen
Traditional Stage-Gate™ (SG) (Cooper 1993) or PACE® processes (McGrath and
Akiyama 1996) assume that there is little uncertainty associated with the technologies
to be utilized. However, the inability to manage high-risk technologies as part of
product development is frequently the cause of canceled or significantly delayed new
product development projects. Unlike product development, the ultimate outcomes of
technology development efforts are unpredictable. Prematurely introducing a
technology into the product development process when there is high uncertainty that
the technology will ever meet the desired specifications often leads to project delays,
project uncertainty, and project cancellation.
We have found that a different management process, the technology Stage-
Gate™ (TechSG) process, is needed to manage technology development efforts when
there is high uncertainty and risk. TechSG, initially described by Eldred and Shapiro
(1996) and Eldred and McGrath (1997), brings a structured methodology for
managing new technology development without thwarting the creativity needed in
this early stage of product development.
The overall objective of this chapter is to provide the reader with more insight
into the process and to describe the tools and methodologies that make up the
TechSG process. The process is specifically intended to manage high-risk technology
development projects when there is uncertainty and risk that the technology discovery
may never occur and therefore the ultimate desired product characteristics might
never be ac
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