New Product Development Process - Globalization Essay Example
New Product Development Process
With the advent of globalization, the market is highly competitive nowadays - New Product Development Process introduction. This calls for effective goods and services. Innovation is very much needed in this kind of environment. With businesses seeking to provide goods and services to millions of people around the world, the new product development process should be thought out and implemented.
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To come up with a new product, an organization can start by looking at what they already have or what their competitors already have if they do not have a new idea that could be further developed. An organization can introduce significant changes and innovation to an existing product in the market, extend the functionality or lines that are already available, reposition an existing product for the consumption of a targeted market segment, or conceptualize an entirely new product that can be used by the consumers. Conceptualizing an entirely new product may be the most challenging way to go about in developing a new product (Ulrich & Eppinger, 2004). Yet, it is not impossible to do so.
The first stage in the product development process is the generation of ideas and concepts. This can be done through a brainstorming session inspired by a market study or a consumer trend that the organization has access to. When the members of the product design team get together, they can analyze what the market needs, what consumer wants and what the organization can offer in answer to such needs. The team can bring out as many ideas as they can without prejudice to the logistics or the costs that might be associated in developing the product.
After the brainstorming process, the next step would screening the ideas that are worth pursuing and separating them from the merely novel and interesting ideas. This is refinement of the concept being pursued because the ideas will be based on the needs of consumers, the possible response of the market, and the feasibility of pursuing the idea. When the ideas have been screened, the concept will then be developed further and tested. This will enable the organization to understand if the product has a chance to compete in the market. This will also aid in making additional improvements to the product as the development phase continues.
Business analysis will then be conducted. This will include the pricing of the product and how it will funded. When will it become profitable? After this, the product prototype will be launched and tested in the market. This will be an initial run that will test the response of the market to the concept. If the market responds positively, then the organization will put its resources behind the product and fund its development including its technical, logistical and resource needs.
As soon as the organization decides to pursue the project, it will be commercialized and marketed prior to the actual launching. This will help create media exposure so that the target market will be made aware of the birth of the new product. This will also serve as a launching pad for the full marketing strategies of the organization. As commercialization proceeds, the company also looks at possible expansion of the product or the conceptualization of new products as the one just released in the market will live out its product lifespan. As such, continuous presence and interface in the market will continue to be an important factor.
Ulrich, K. T. & Eppinger, S. D. (2004). Product Design and Development, (3rd Edn). New York: McGraw-Hill.