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Agile and stage-gate models have their own unique merits and characteristics that can greatly benefit development performance in different contexts. The key question is whether these two models can effectively coexist and complement each other.
According to Cooper and Sommer (2016), agile methodologies provide valuable tools to stage-gate models, such as fast and continuous feedback from users and frequent face-to-face communication within teams. These elements contribute to improving product-market fit and enhancing development efficiency. On the other hand, the stage-gate model offers agile approaches the opportunity to plan ahead beyond the limitations of a sprint. It allows for coordination beyond the core development team and enables careful management of investments and risk.
Cooper (2016) presents two best-practice examples from large companies in an article, demonstrating the successful implementation of a hybrid model. These cases utilize a scrum-stage-gate model, which combines elements of both agile and stage-gate methodologies. However, it is important to note that certain modifications are necessary when applying agile principles to physical product development. One specific area that requires adjustment is defining a "done" sprint, as physical components of a project often cannot be compartmentalized as easily as software.
In their examination of eight cases of implementing a hybrid agile-stage-gate model, Cooper and Sommer (2018) highlight the challenges of integrating an agile approach into an existing stage-gate system. One crucial decision is determining where to implement agile methodology, including which projects, parts of the project scope, and stages in the development process. According to Cooper and Sommer (2016), most observed companies used agile in the early stages, such as ideation and conceptual design, as well as for technical and engineering work. Furthermore, agile methodologies demonstrate their strengths in ambiguous and fast-changing environments. However, it may not be suitable for stable and well-defined project scopes due to its resource intensity.
By leveraging the strengths of both agile and stage-gate models, organizations can achieve a powerful and effective hybrid approach. This enables flexibility, adaptability, and efficient project management, ultimately leading to successful product development.