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Difference between revisions of "Product Development"

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[[File:Product_Development.png|400px|Product Development]]<br />
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source: [https://kalyan-city.blogspot.com/2012/02/what-is-product-development-meaning.html Prof. Mudit Katyani]
 
source: [https://kalyan-city.blogspot.com/2012/02/what-is-product-development-meaning.html Prof. Mudit Katyani]
  
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*Testing or QA
 
*Testing or QA
 
*Shipping or distribution
 
*Shipping or distribution
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== Product Development Process ==
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Product development is an engineering process to convert product idea into finished products. It’s a series of steps that include the product concept, structure, material, manufacturing, and marketing. Developing a new product can capture a new business opportunity as well as expanding market shares, it's quite important for all of companies, especially for startups.  Even thought product development steps might vary a lot from different business size and different project management style, however most projects follow the six main steps in the product design and development process as below:
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[[File:Product_Development_Process.png|500px|Product Development Process]]<br />
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source: [https://www.innopd.com/what-we-offer/product-design-and-development/ InnoPD]
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The process can involve the following eight key stages:
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*Idea generation – brainstorming and coming up with innovative new ideas. See generating ideas for new products and services.
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*Idea evaluation - filtering out any ideas not worth taking forward. See screening new product or service idea.
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*Concept definition - considering specifications such as technical feasibility, product design and market potential. See researching new product and service ideas.
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*Strategic analysis - ensuring your ideas fit into your business' strategic plans and determining the demand, the costs and the profit margin.
 +
*Product development and testing - creating a prototype product or pilot service. See concept development and testing.
 +
*Market testing - modifying the product or service according to customer, manufacturer and support organisations' feedback. This involves deciding the best timing and process for piloting your new product or service. See how to test the market.
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*Commercialisation – determining the pricing for your product or service and finalising marketing plans. See pricing your proposed service or product.
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*Product launch – a detailed launch plan can help ensure a smooth introduction to market.<ref>The Eight key stages of Product Development [https://www.nibusinessinfo.co.uk/content/product-development-process NI BusinessInfo]</ref>
  
  

Revision as of 15:36, 17 October 2019

Business Dictionary defines Product Development as "the creation of products with new or different characteristics that offer new or additional benefits to the customer." Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.[1]


Definition of Product Development

Product development, also called New ProductDevelopment (NPD), is a series of steps that includes the conceptualization, design, development and marketing of newly created or newly rebranded goods or services. The objective of product development is to cultivate, maintain and increase a company's market share by satisfying a consumer demand. Not every product will appeal to every customer or client base, so defining the target market for a product is a critical component that must take place early in the product development process. Quantitative market research should be conducted at all phases of the design process, including before the product or service is conceived, while the product is being designed and after the product has been launched.[2]

Product development is a specialized activity. It is done to improve the existing product or to introduce a new product in the market. It is also done to improve the earlier features or techniques or systems. Generally, it means a new-product development. New-product development means to introduce a brand-new product in the market. It means to add a fresh product to an existing line of products. Normally, a company starts with one or two products. However, after some time it has few more products in its line (say from 15 to 20). This is possible only because of new-product development. Refer following diagram to know the basic meaning of product development.


Product Development
source: Prof. Mudit Katyani


Product development takes place, works or functions as under:

  • Creation of an entirely new product or upgrading an existing product by exploring all possibilities and outcomes.
  • Innovation of a new or an existing product to deliver better and enhanced services to end-users.
  • Continuous improvement of a new product or enhancing an existing product by giving preference to satisfy the demand of end-users.
  • Enhancing the utility of a new product or upgrading features of an existing product, for the personal and/or commercial use, to expand the defined goal (objective).[3]


Product Development Does Not Mean Product Management[4]

When you understand product development this way, you can see that it is not synonymous with product management, although many people mistakenly use the terms interchangeably. Indeed, product development does not refer to a single role at all. You should instead view it as more of a broad process or method for bringing products to market which involves many teams across a company, including:

  • Product management
  • Marketing
  • Development (or manufacturing)
  • Design
  • Testing or QA
  • Shipping or distribution


Product Development Process

Product development is an engineering process to convert product idea into finished products. It’s a series of steps that include the product concept, structure, material, manufacturing, and marketing. Developing a new product can capture a new business opportunity as well as expanding market shares, it's quite important for all of companies, especially for startups. Even thought product development steps might vary a lot from different business size and different project management style, however most projects follow the six main steps in the product design and development process as below:


Product Development Process
source: InnoPD


The process can involve the following eight key stages:

  • Idea generation – brainstorming and coming up with innovative new ideas. See generating ideas for new products and services.
  • Idea evaluation - filtering out any ideas not worth taking forward. See screening new product or service idea.
  • Concept definition - considering specifications such as technical feasibility, product design and market potential. See researching new product and service ideas.
  • Strategic analysis - ensuring your ideas fit into your business' strategic plans and determining the demand, the costs and the profit margin.
  • Product development and testing - creating a prototype product or pilot service. See concept development and testing.
  • Market testing - modifying the product or service according to customer, manufacturer and support organisations' feedback. This involves deciding the best timing and process for piloting your new product or service. See how to test the market.
  • Commercialisation – determining the pricing for your product or service and finalising marketing plans. See pricing your proposed service or product.
  • Product launch – a detailed launch plan can help ensure a smooth introduction to market.[5]


See Also

Product
Product-as-a-Service (PaaS)
Product/Market Fit
Product/Market Grid
Product Data Management (PDM)
Product Design
Product Information Management (PIM)
Product Life Cycle
Product Lifecycle Management
Productivity
Software


References

  1. Defining Product Development Business Dictionary
  2. What is Product Development Techtarget
  3. Understanding Product Development Kalyan City
  4. Product Development Does Not Mean Product Management Product Plan
  5. The Eight key stages of Product Development NI BusinessInfo