What Is New Product Development?
So you’ve got your product idea. Congratulations! It will be the single most important element of your startup’s success. But let’s cut to the chase — it’s not as easy as it looks.
In this article, we will discuss the new product development process and the stages required for a successful launch of any product. New product development is an important part of the overall business strategy and it can be done in various ways depending on the type of products being developed. In this article, we will highlight the different stages of developing a new product development process. We will also discuss some of the key factors to consider when developing a new product.
New product development (NPD) refers generally to the complete process of creating a new product or service which has not been previously available
The term “new product development” was coined by Dr James Womack, author of “Lean Thinking,” in his book “Developing Products That Win.” He defines new product development as “a radically different approach to product design, engineering, manufacturing, and marketing.”
The rise of new product development can largely be attributed to the need to maintain a competitive advantage among businesses in today’s marketplace. As competition increases, companies must continue to innovate to remain relevant. To do so, they often turn to new product development.
A new product OrijaDesign designed for Mijenko.
The 8 stages of new product development
There are multiple stages involved in the entire process of bringing a new idea to life, including research and analysis, ideation, prototyping, testing, validation, production, packaging, branding, promotion, sales, and even customer support.
Each stage of product creation starts out differently, but most follow that same general pattern. Let’s take a look at them one at a time.
1. Idea generation
This stage involves brainstorming ideas and concepts that could potentially become a business. You need to think about what you want to do, how you plan to make money, and who you would like to work with.
2. Business model creation
You have to figure out how you intend to get paid and where you will find customers. In addition, you should consider whether you will sell directly to consumers or if you will sell products to distributors first. A good book I recommend is the business model generation by Alexander Osterwalder, Yves Pigneur.
3. Market research
In order to determine whether there is demand for your product, you need to conduct market research. You can use several methods to gather information including surveys, focus groups, and interviews.
4. Product design
Now that you know what people want, you can speak to a product design company to develop your idea and create a prototype. 3D printing (rapid prototyping) plays a huge part in this today by allowing inventors to prototype and test different designs before investing time and money in manufacturing.
5. Testing
One of the most common new product development stages is concept testing. This stage includes testing a new product or service presentation in selected target markets to determine overall fit with customer needs and preferences. It helps organizations define and exploit opportunities, protects existing products/services, validates business strategy based on competitive landscape, market opportunity and positioning and provides a higher level of organizational performance by ensuring adequate allocation for new products.
6. Manufacturing
Manufacturing is the final step in developing a successful product. Once you have determined the best way to manufacture your product, you need a manufacturer to produce them. An expert tip would be to speak with manufacturers in the development process to get an idea of the limitations. I strongly believe understanding some idea of the process can help you reduce unnecessary manufacturing costs.
7. Marketing
Marketing is the last step in launching a new product. You need to decide how you will promote your product and how much you will spend on advertising.
8. Sales & distribution
Once you launch your product, you need salespeople to help you distribute your product. You may choose to sell directly to consumers or go through retailers first.
Having a good understanding of the different components of developing a product. I hope that by following the steps in this guide and adapting them to your own unique situation, you can successfully launch your product.
