New Product Development Process
In business and engineering, new product development (NPD ) is the term used to describe the complete process of bringing a new product to market. A product is a set of benefits offered for exchange and can be tangible (ie , something physical that you can touch ) or intangible (like a service, experience or belief) . There are two parallel paths involved in the NPD process : one involves the idea generation , product design and detail engineering , and the other involves market research and market analysis . Companies typically see new product development as the first stage in the creation and marketing of new products within the overall strategic process of managing the product life cycle is used to maintain or increase their market share .Due to the introduction of new products on a consistent basis is important to the future success of many organizations , vendors responsible product decisions usually follow established procedures to bring products to market. In the scientific area that can mean the establishment of laboratory research programs underway to discover new products (eg , medicines ) while less scientific companies can pool resources to develop products with a less structured schedule .
This section presents a 7-step process comprising the key elements of new product development . While some companies may not follow a deliberate approach step by step, the steps are useful to show the input and decision-making to be done in order to successfully develop new products. The process also shows the importance market research plays in the development of products.
We should note that while the 7-step process that works for most industries , is less effective in developing radically new products . The main reason is the inability of the target market to provide sufficient information on advanced product concepts as they often have difficulty understanding radically different ideas . So while many of these measures are used to research innovative ideas , the seller should be careful when interpreting the results .
the process
Idea Generation is often called the " fuzzy front end " of the NPD process
Ideas for new products can be obtained from basic research using a SWOT ( Strengths, Weaknesses, Opportunities and Threats ) , Market and consumer trends , company's R & D department , competitors , focus groups , employees , salespeople , corporate spies , trade shows , or ethnographic discovery methods (searching for user patterns and habits ) may also be used to get an insight into new product lines or product features.
Many ideas are being generated on the new product. Out of these ideas many ideas are being implemented . The ideas used to generate in many forms and their generating places are also various . Many reasons are responsible for the generation of an idea.
Generation brainstorming ideas or new products, services or store concepts - idea generation techniques can begin when you have done your analysis of opportunities to support your ideas in the Idea selection phase (shown in the next step development ) .
Idea Screening
The object is to eliminate unsound concepts prior to devoting resources to them.
Inspectors should ask several questions :
Will the customer in the target market benefit of the product?What is the prognosis of size and growth of the market segment / target market?
What is the pressure of the current or expected competitive product idea ?
What are the industry sales and market trends the product idea is based on ?
Is it technically feasible to manufacture the product ?
Will the product be profitable when manufactured and delivered to the customer at the target price ?
Concept development and testing
Develop the marketing and engineering detailsInvestigate intellectual property issues and search the patent databases
Who is the target market and who is the decision maker in the purchasing process ?
What product features must the product incorporate ?
What benefits will the product ?
How will consumers react to the product ?
How will the product can produce more profitable?
To demonstrate the feasibility through virtual representation and computer-aided rapid prototyping
What will be the cost of producing it ?
Try the concept by asking a sample of prospective customers what they think of the idea. Usually through Choice Modeling .
Business Analysis
Estimation of price competition based on users probably sell
Turnover estimated based on market size and tools such as equation Fourt - Woodlock
Estimate profitability and breakeven
Beta testing and market testing
Produce a physical prototype or mock
Test the product ( and its packaging ) under normal conditions of use
Conduct client interviews or focus groups introduce fair
Make adjustments if necessary
Produce an initial run of the product and sell it on a test market area to determine customer acceptance
technical Implementation
Restarting the program
Completion of the quality management system
Resource estimate
publication requirement
Publish technical communications such as data sheets
Engineering Operations Planning
Planning department
collaboration with suppliers
Logistics Plan
The publication of the resource plan
Review and monitoring of the program
Contingencies - what-if planning
Commercialization ( often considered post -NPD )
Product Launch
Produce and place advertisements and other promotions
Fill the distribution pipeline with product
Critical path analysis is most useful at this stage
New Price List
Impact of new product on the entire product portfolio
Value Analysis (internal and external )
Competition and alternative competitive technologies
The different value segments ( price, value and need)
Product costs (fixed and variable)
Forecast of unit volumes , revenue and profit
0 comments:
Post a Comment