Explain the Challenges of the New Product Development Process
New product development is a multi-stage process that takes a product or service from conception to market. The process has a series of stages that a new product must go through, which begins with the generation of a concept and idea and ends with the product in the market (Murthy, Rausand & Osteras, 2008). Some of the stages overlap occasionally depending on the nature of the business. The definition of the term product is now becoming wide. Initially, it meant it was tangible and physical, sharply contrasting with narrow services. The difference between products and services is becoming blurred, and there is a general acceptance that a product involves a combination of intangible and tangible items.
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For this assignment, develop a table in which you include the following:
Explain the steps and the main task that must be completed in the new product development process.
Explain why these steps are essential.
Describe the challenges that are presented in each step.
|Importance of steps
|Brainstorming and coming up with new innovative ideas.
It is identifying possible ideas that can be pursued to meet customer requirements (NIBusinessInfo, 2018).
We are determining the product’s overall l functions and sub-functions, such as what the product should do.
|Determines if the product can fill a gap in the market (NIBusinessInfo, 2018).
Determines any weakness in the product which should be addressed.
Identifies the need for the product.
|I am coming up with an original idea.
Rejection of the idea or concept by the management.
The idea may not be feasible.
The idea may already be implemented somewhere.
|Filtering of any idea that is not worth going forward with.
We are assessing ideas against set criteria.
|Evaluates the potential of the product in the market.
Checks if the product is technically feasible.
Checks the relevance of the idea.
Determines if the product is affordable by the organization.
Tries to determine the ideal profit (NIBusinessInfo, 2018).
|Wrong evaluation might be made due to insufficient knowledge of the new product.
It may be evaluated against a product it closely resembles that may give the wrong picture.
Like most new ideas, it may not seem like one that has returned in the initial evaluation.
An excellent idea may be dropped at this point.
|I am focusing on specifications such as product design and the potential of the technical market feasibility.
We are conducting extensive market research to understand customer needs.
Identification of the possible concepts that can be pursued.
I am deciding on the preferred concept.
|Determines if the proposed product is unique, superior or distinct (NIBusinessInfo, 2018).
Determines if the product would be safe.
Identifies potential customers.
Determines if the market would need the product at a realistic price.
Checks if the proposed product will bypass the trends or die away.
|Market research requires extensive research and time.
Possibility of wrong concept definition
|Ensuring that the ideas align with the organization’s strategic plans.
I am determining costs, demands and profit margins.
I am creating a detailed idea description from the customer’s perspective.
|Develops the price models of the proposed product.
Determines the type and how much reinsurance is needed.
|Needs to offer value to the clients may create pressure.
It may be hard to prove that the company will make profits.
The market competition may be too high, which makes the pricing difficult.
|Product Development and Testing
|Creation of prototypes and pilot service.
I was coming up with the exact product.
We are designing materials for training and marketing for any intermediaries.
Negotiation of reinsurance arrangements.
I am coming up with quotations for the product.
Assessing the customer reactions
|Determines if customers are interested in the product.
It hIt helps in giving information about the features that customers like most and least and the price they find suitable.
It helps get feedback about what customers want to change in the product.
|Customers may reject a product.
The field tests may fail.
The product may fall below the desired performance.
Carrying out tests may bring about some required changes which need additional resources.
|Involves modification of the product to suit the needs of the customer.
I am deciding on the time that works best.
We are creating a process for piloting the product.
Development of prototypes.
We are building a brand for the product.
|Enables customers to see an initial product and give feedback.
Enables the uncovering of product weaknesses and shortcomings that were missed.
Determines if customers are interested in the product.
|Products should be protected from theft by having intellectual property rights.
Product ideas may be stolen.
Customers may reject the product.
|Production of the product is done.
I am creating a launch plan to ensure the product is smoothly introduced.
They are advertising the launch on media and other intermediaries.
|The organization would start getting returns for the new launch.
The launch may get investors rolling in to acquire shares from the company.
|The product may immediately be returned.
The product may be rejected.
Competitors may come up with similar products or substitutes, which would create undue competition for the organizations.
In the first phase, the need for the new product is identified, and decisions are made for the new product. Some activities include Brainstorming, coming up with new innovative ideas, and identifying possible hypotheses that can be pursued to meet the customer requirements. In the next phase, the product’s attributes are translated into the specific characteristics of the products. In the third phase, the detailed design of the product is made, and the product is created following the design steps. Activities here may include focusing on specifications such as product design, the market’s potential, and technical feasibility and conducting extensive market research to understand customer needs. The fourth phase deals with product development and ends with the product prototype. Creation of prototypes and pilot services, coming up with the exact product, and designing materials for training and marketing for intermediaries are all activities carried out in this phase. The product is launched into the market in the last step, and a launch plan must be carried out.
A myth in producing and managing new products is that the failure rate is 80% or more (Castellion & Markham, 2013). This fallacy may encourage people to stop thinking and cause product failures due to emotions instead of reasoned arguments. If all the phases are carried out correctly from start to finish, a new product is highly likely to succeed.
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Castellion, G., & Markham, S. K. (2013). Perspective: New Product Failure Rates: Influence of Argumentum ad Populum and Self-Interest. Journal of Product Innovation Management, 30(5), 976-979. doi:10.1111/j.1540-5885.2012.01009.x
Murthy, D.N.P., Rausand, M., Osteras, T. (2008) Product Reliability Specification and Performance. XVII, 284 p. 978-84800-270-8
NIBusinessInfo. (2018). The product development process. Retrieved from https://www.nibusinessinfo.co.uk/content/product-development-process
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Week 4 – Assignment: Explain the Challenges of the New Product Development Process
For this assignment, develop a table in which you include the following:
- Explain the steps and the main task that must be completed in the new product development process.
- Explain why these steps are essential.
- Des. ribe the challenges that are presented in each step.
In addition to the table, include an introduction, summary and conclusion.
Support your paper with at least three (3) peer-reviewed articles published in the last five years. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 3-5 pages, not including title page and references
Your response should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
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Week 4- Explain the Challenges of the New Product Development Process