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 that it is tangible and physical, sharply contrasting with services which are narrow. 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.
For this assignment, develop a table in which you include the following:
Explain the steps and the main task that need to be completed in the new product development process.
Explain why these steps are important?
Describe the challenges that are presented in each step?
|Development Stage||Main Tasks||Importance of steps||Challenges|
|Idea Generation||Brainstorming and coming up with new innovative ideas.
Identifying possible ideas that can be pursued to meet the customer requirements (NIBusinessInfo, 2018).
Determining the overall l functions and sub-functions of the product. 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.
|Coming up with an original idea.
Rejection of the idea or concept by the management.
The idea may not be feasible.
Idea may be already implemented somewhere.
|Idea Evaluation||Filtering of any idea that is not worth going forward with.
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.
A perfectly good idea may be dropped at this point.
|Concept Definition||Focusing on specifications such as product design, the potential of the technical market feasibility.
Conducting extensive market research to understand customer needs.
Identification of the possible concepts that can be pursued.
Deciding on 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 would bypass the trends or if it will die away.
|Market research requires extensive research and time.
Possibility of wrong concept definition
|Strategic analysis||Ensuring that the ideas align with the organization’s strategic plans.
Determining costs, demands and profit margin.
Creating a detailed description of the idea 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.
Coming up with the exact product.
Designing materials for training and marketing for any intermediaries.
Negotiation of reinsurance arrangements.
Coming up with quotations for the product.
Assessing the customer reactions
|Determines if customers are interested in the product.
Helps in giving information about the features that customers like most and least, and the price that they find suitable.
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.
|Market Testing||Involves modification of the product to suit the needs of the customer.
Deciding on the timing that works best.
Creating a process for piloting the product.
Development of prototypes.
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.
|Product Launch||Production of the product is done.
Creating a launch plan which ensures that the product is smoothly introduced into the market.
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 get shares from the company.
|The product may immediately give returns.
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 and coming up with new innovative ideas and identifying possible ideas that can be pursued to meet the customer requirements. In the next phase, the attributes of the product 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 potential of the market, and carrying out technical feasibility. 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 any intermediaries are all activities that are carried out in this phase. In the last phase, the actual product is launched into the market, and a launch plan needs to be carried out.
There is a myth in producing and managing new products that the rate of failure is 80 percent 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.
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 Specificaiton 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 need to be completed in the new product development process.
- Explain why these steps are important?
- Describe the challenges that are presented in each step?
In addition to the table, include an introduction, summary and conclusion.
Support your paper with a minimum of 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
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