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development
Process structure
The product development process
typically consists of several activities that
firms employ in the complex process of
delivering new products to the market. A
process management approach is used to
provide a structure. Product development
often overlaps much with the engineering
design process, particularly if the new
product being developed involves
application of math and/or science. Every
new product will pass through a series of
stages/phases, including ideation among
other aspects of design, as well as
manufacturing and market introduction. In
highly complex engineered products (e.g.
aircraft, automotive, machinery), the NPD
process can be likewise complex
regarding management of personnel,
milestones and deliverables. Such projects
typically use an integrated product team
approach. The process for managing
large-scale complex engineering products
is much slower (often 10-plus years) than
that deployed for many types of consumer
goods.
NPD Process
1. New Product Strategy – Innovators
have clearly defined their goals and
objectives for the new product.
2. Idea Generation – Collective
brainstorming through internal and
external sources.
3. Screening – Condense the number of
brainstormed ideas.
4. Concept Testing – Structure an idea
into a detailed concept.
5. Business Analysis – Understand the
cost and profits of the new product and
determining if they meet company
objectives.
6. Product Development – Developing the
product.
7. Market Testing – Marketing mix is
tested through a trial run of the product.
8. Commercialization – Introducing the
product to the public.
Models
Conceptual models have been designed in
order to facilitate a smooth process. The
concept adopted by IDEO, a successful
design and consulting firm, is one of the
most researched processes in regard to
new product development and is a five-
step procedure.[10] These steps are listed
in chronological order:
1. Understand and observe the market, the
client, the technology, and the limitations
of the problem;
2. Synthesize the information collected at
the first step;
3. Visualise new customers using the
product;
4. Prototype, evaluate and improve the
concept;
5. Implementation of design changes
which are associated with more
technologically advanced procedures and
therefore this step will require more time.
Marketing considerations
There have been a number of approaches
proposed for analyzing and responding to
the marketing challenges of new product
development. Two of these are the eight
stages process of Peter Koen of the
Stevens Institute of Technology, and a
process known as the fuzzy front end.
1. Opportunity Identification
2. Opportunity Analysis
3. Idea Genesis
4. Idea Selection
5. Idea and Technology Development
The first element is the opportunity
identification. In this element, large or
incremental business and technological
chances are identified in a more or less
structured way. Using the guidelines
established here, resources will
eventually be allocated to new
projects.... which then lead to a
structured NPPD (New Product &
Process Development) strategy.
The second element is the opportunity
analysis. It is done to translate the
identified opportunities into implications
for the business and technology specific
context of the company. Here extensive
efforts may be made to align ideas to
target customer groups and do market
studies and/or technical trials and
research.
The third element is the idea genesis,
which is described as evolutionary and
iterative process progressing from birth
to maturation of the opportunity into a
tangible idea. The process of the idea
genesis can be made internally or come
from outside inputs, e.g. a supplier
offering a new material/technology or
from a customer with an unusual
request.
The fourth element is the idea selection.
Its purpose is to choose whether to
pursue an idea by analyzing its potential
business value.
The fifth element is the idea and
technology development. During this
part of the front-end, the business case
is developed based on estimates of the
total available market, customer needs,
investment requirements, competition
analysis and project uncertainty. Some
organizations consider this to be the
first stage of the NPPD process (i.e.,
Stage 0).
Other conceptualisations
Other authors have divided
predevelopment product development
activities differently.
1. Preliminary
2. Technical assessment
3. Source-of-supply assessment: suppliers
and partners or alliances
4. Market research: market size and
segmentation analysis, VoC (voice of the
customer) research
5. Product idea testing
6. Customer value assessment
7. Product definition
8. Business and financial analysis
Opportunity screening
Idea evaluation
Go/No-Go for development
mission statement
customer needs
details of the selected idea
product definition and specifications
economic analysis of the product
the development schedule
project staffing and the budget
a business plan aligned with corporate
strategy
Strategies
Lean product development
Design for six sigma
Quality function deployment
Phase–gate model
User-centered design
Management
[33] Companies must take a holistic
approach to managing this process and
must continue to innovate and develop
new products if they want to grow and
prosper.
Related fields
End user
Brand management
Engineering
Industrial design
Marketing
Product management
See also
Choice modelling
Commercialization
Conceptual economy
Product lifecycle
Pro-innovation bias
Requirements management
Social design
Soft launch
Market penetration
References
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