3 Steps For Successful New Product Development
New Product Development (NPD) is the process of bringing new products to market.
As the NPD process is linked to every function in a business, its complexity needs to be understood so it can be well managed.
1) Market Research
It begins with understanding the market you want to serve and assessing what gaps and opportunities there are to better meet the current or emerging needs of those consumers.
Some questions to research include:
What already exists to meet those needs?
Who provides the existing products?
What do the current products cost?
How are the current products delivered?
What are the consumers really looking for?
What trends are forecast in this area?
Can you meet these needs differently?
Can you meet these needs more cost effectively?
Can you meet these needs with a better quality product?
Can you provide better quality or more flexible customer service?
Can you meet these needs more sustainably?
2) Business Development
After identifying the gaps and opportunities in the market the next challenge is determining if/how your business can profitably meet the identified needs. Profitable new product development requires the skills to manage cross-functional teams effectively from design to delivery.
As part of this process, areas you will need to manage include:
3) Design to Delivery
The real art of new product development is risk minimisation and profit maximisation. Successful new product development results in the planned products being launched to market on time, in full, to specification.
NPD tasks can include coordination of:
ongoing trend research and market analysis
ongoing range analysis (where you already provide existing products and services)
costings and price negotiation
sales and marketing samples
sales and marketing materials
suppliers and order placement
factories and order placement
production timing and quality