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#1. Idea Generation
The development of a product will start with the concept. The rest of the process will ensure that ideas are tested for their viability, so in the beginning all ideas are good ideas (To a certain extent!)
Ideas can, and will come, from many different directions. The best place to start is with a SWOT analysis, (Strengths, Weaknesses, Opportunities and Threats), which incorporates current market trends. This can be used to analyse your company’s position and find a direction that is in line with your business strategy.
In addition to this business-centred activity, are methods that focus on the customer’s needs and wants. This could be:
#2. Idea Screening
This step is crucial to ensure that unsuitable ideas, for whatever reason, are rejected as soon as possible. Ideas need to be considered objectively, ideally by a group or committee.
Specific screening criteria need to be set for this stage, looking at ROI, affordability and market potential. These questions need to be considered carefully, to avoid product failure after considerable investment down the line.
Recommended for YouWebcast: Agile Marketing: Pour Gas on Your Growth Fire#3. Concept Development & Testing
You have an idea and it’s passed the screening stage. However, internal opinion isn’t the most important. You need to ask the people that matter – your customers.
Using a small group of your true customer base – those that convert – the idea need to be tested to see their reaction. The idea should now be a concept, with enough in-depth information that the consumer can visualise it.
Do they understand the concept?
Do they want or need it?This stage gives you a chance to develop the concept further, considering their feedback, but also to start thinking about what your marketing message will be.
Once the concept has been tested and finalised, a business case needs to be put together to assess whether the new product/service will be profitable. This should include a detailed marketing strategy, highlighting the target market, product positioning and the marketing mix that will be used.
This analysis needs to include: whether there is a demand for the product, a full appraisal of the costs, competition and identification of a break-even point.
If the new product is approved, it will be passed to the technical and marketing development stage. This is when a prototype or a limited production model will be created. This means you can investigate exact design & specifications and any manufacturing methods, but also gives something tangible for consumer testing, for feedback on specifics like look, feel and packaging for example.
#6. Test Marketing
Test marketing (or market testing) is different to concept or consumer testing, in that it introduces the prototype product following the proposed marketing plan as whole rather than individual elements.
This process is required to validate the whole concept and is used for further refinement of all elements, from product to marketing message.
When the concept has been developed and tested, final decisions need to be made to move the product to its launch into the market. Pricing and marketing plans need to be finalised and the sales teams and distribution briefed, so that the product and company is ready for the final stage.
#8. Launch
A detailed launch plan is needed for this stage to run smoothly and to have maximum impact. It should include decisions surrounding when and where to launch to target your primary consumer group. Finally in order to learn from any mistakes made, a review of the market performance is needed to access the success of the project.
Every entrepreneur knows that productivity is one of the key ingredients for successful product development. One of the two key processes in Robert’s Rules of Innovation is the new product development process A formalized, NPD process – also referred to and best practice: the Stage Gate Process – is a must, from simple to sophisticated.
The New Product Development process is often referred to as The Stage-Gate innovation process, developed by Dr. Robert G. Cooper as a result of comprehensive research on reasons why products succeed and why they fail.
When teams collaborate in developing new innovations, having the following eight ingredients mixed into your team’s new product developmental repertoire will ensure that it’s overall marketability will happen relatively quick, and accurately – making everyone productive across the board.
Step1: Generating
Utilizing basic internal and external SWOT analyses, as well as current marketing trends, one can distance themselves from the competition by generating ideologies which take affordability, ROI, and widespread distribution costs into account.
Lean, mean and scalable are the key points to keep in mind. During the NPD process, keep the system nimble and use flexible discretion over which activities are executed. You may want to develop multiple versions of your road map scaled to suit different types and risk levels of projects.
Step2: Screening The Idea
Wichita, possessing more aviation industry than most other states, is seeing many new innovations stop with Step2 – screening. Do you go/no go? Set specific criteria for ideas that should be continued or dropped. Stick to the agreed upon criteria so poor projects can be sent back to the idea-hopper early on.
Because product development costs are being cut in areas like Wichita, “prescreening product ideas,” means taking your Top3 competitors’ new innovations into account, how much market share they’re chomping up, what benefits end consumers could expect etc. An interesting industry fact: Aviation industrialists will often compare growth with metals markets; therefore, when Boeing is idle, never assume that all airplanes are grounded, per se.
Step3: Testing The Concept
As Gaurav Akrani has said, “Concept testing is done after idea screening.” And it is important to note, it is different from test marketing.
Aside from patent research, design due diligence, and other legalities involved with new product development; knowing where the marketing messages will work best is often the biggest part of testing the concept. Does the consumer understand, need, or want the product or service?
Step4: Business Analytics
During the New Product Development process, build a system of metrics to monitor progress. Include input metrics, such as average time in each stage, as well as output metrics that measure the value of launched products, percentage of new product sales and other figures that provide valuable feedback. It is important for an organization to be in agreement for these criteria and metrics.
Even if an idea doesn’t turn into product, keep it in the hopper because it can prove to be a valuable asset for future products and a basis for learning and growth.
Step5: Beta / Marketability Tests
Arranging private tests groups, launching beta versions, and then forming test panels after the product or products have been tested will provide you with valuable information allowing last minute improvements and tweaks. Not to mention helping to generate a small amount of buzz. WordPress is becoming synonymous with beta testing, and it’s effective; Thousands of programmers contribute code, millions test it, and finally even more download the completed end-product.
Step6: Technicalities + Product Development
Provided the technical aspects can be perfected without alterations to post-beta products, heading towards a smooth step7 is imminent. According to Akrani, in this step, “The production department will make plans to produce the product. The marketing department will make plans to distribute the product. The finance department will provide the finance for introducing the new product”.
As an example; In manufacturing, the process before sending technical specs to machinery involves printing MSDS sheets, a requirement for retaining an ISO certification (the organizational structure, procedures, processes and resources needed to implement quality management.)
In internet jargon, honing the technicalities after beta testing involves final database preparations, estimation of server resources, and planning automated logistics. Be sure to have your technicalities in line when moving forward.
Step7: Commercialize
At this stage, your new product developments have gone mainstream, consumers are purchasing your good or service, and technical support is consistently monitoring progress. Keeping your distribution pipelines loaded with products is an integral part of this process too, as one prefers not to give physical (or perpetual) shelf space to competition. Refreshing advertisements during this stage will keep your product’s name firmly supplanted into the minds of those in the contemplation stages of purchase.
Step8: Post Launch Review and Perfect Pricing
Review the NPD process efficiency and look for continues improvements. Most new products are introduced with introductory pricing, in which final prices are nailed down after consumers have ‘gotten in’. In this final stage, you’ll gauge overall value relevant to COGS (cost of goods sold), making sure internal costs aren’t overshadowing new product profits. You continuously differentiate consumer needs as your products age, forecast profits and improve delivery process whether physical, or digital, products are being perpetuated.
Remember: The Process Is Loose
The entire new product development process is an ever evolving testing platform where errors will be made, designs will get trashed, and loss could be recorded. Having your entire team working in tight synchronicity will ensure the successful launch of goods or services, even if reinventing your own wheel. Productivity during product development can be achieved if, and only if, goals are clearly defined along the way and each process has contingencies clearly outlined on paper.
For more tips and guidelines on developing the right implementation strategy, see Robert’s Rules of Innovation: A-Step Program for Corporate Survival.
check market
see what consumer need
develop ur quality
Before thinking about the process to launch a new product, I/we ask my/ourselfs:
1. Client need?
2. Technological update need?
3. Sales increment?
4. Be positioned in front of competitors?
5. Market segmentation?
6. Market opportunity/need?
7. Product life cycle?
8. Diversification needed?
etc
For the process, usually I follow this alignment: (after got answers from those main questions above).
1. Idea / economic analysis /analysis of the value for the consumers..etc
2. Product selection / preliminary project
3. Prototype development
4. Tests / compare with similar competitors products
5. Test with a consumers panel
6. Product name and price (with surveys too)
7. Package prototypes (surveys too)
8. Final project / Planning
9. Production
By the way, is important make a reference to some problems in new product developments:
1. Limited resources, mainly financial
2. Technological hard to imitate
3. High level of development needed
4. Inaccessible
5. Regulamentations (governmental, social, etc)
6. Shortage level of innovation
It's a very simple process!
You have an idea of a service/product that might add value to people and you work towards making it a possibility. Whether that value is needed by a substantial chunk of the intended target audience is something you need to research, asses and validate.
