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Leading firms are now beginning to integrate elements of the Agile IT product development method into their traditional gating processes to develop physical products. The trend began first in the IT industry, where Agile and Stage-Gate methods were found to complement each other, and only recently has been seen in manufacturing firms. The benefits of the hybrid model include much faster product releases, better response to changing customer requirements, and improved team communication and morale. But some modifications to the Agile model are required for physical products. Two large-company best-practice examples are provided to illustrate how to run a hybrid model.
Robert G. Cooper (Sat,) studied this question.