In business and engineering, new product development (NPD) covers the complete process of bringing a new product to market. New product development is described in the literature[which?] as the transformation of a market opportunity into a product available for sale. The product can be tangible (something physical which one can touch) or intangible (like a service, experience, or belief). A good understanding of customer needs and wants, of the competitive environment and of the nature of the market represents the top required factor for the success of a new product. Cost, time and quality are the main variables that drive customer needs. Aiming at these three variables, companies develop continuous practices and strategies to better satisfy customer requirements and to increase their own market share by a regular development of new products. There are many uncertainties and challenges which companies must face throughout the process. The use of best practices and the elimination of barriers to communication are the main concerns for the management of the NPD process
CUSTOMER CENTERED New Product Development. Focuses on:
Finding new ways to solve customer problems.
Create more customer-satisfying experience
Companies often rely on technology, but the real success comes from understanding customer needs and values.
The most successful companies were the ones that:
Differentiated from others
Solved major customer problems
Offered a compelling customer value proposition
Engaged customer directly
TEAM BASED New Product Development
To deserving new products in which various company’s departments work closely together overlapping the steps in the product development process in order to:
Company departments work closely together in cross functional teams overlapping the steps in the product development process (to save time and increase effectiveness).
Those departments are: legal, marketing, finances, design and manufacturing, suppliers and customer companies.
If there is a problem, all the company can work.
SYSTEMATIC New Product Development
Development process should be holistic (alternative) and systematic not to good ideas die.
This process is installed on Innovation Management System that collect, review, evaluate new product ideas and manage
the company appoints to a senior person to be the Innovation Manager who encourage all the company
employees, suppliers, distributors and dealers to become involved in finding and developing new products.
Then, there is a Cross-Functional Innovation Management Committee which:
Evaluate new products ideas
Help bringing good ideas
To sum up, New-Product success requires:
New ways to create valued customer experience, from generating and screening new product ideas to create and roll out want-satisfying products.
New Product Development IN TURBULENT TIMES
When we are in a tough economic situation usually management reduces spending on: new-product development. Usually it is done from a short-sighted.
Though times might call for even:
Greater new-product development, offering changing customer needs and tastes.
Making the company more competitive
Positioning it better for future.
Virtual product development
Uses collaboration technology to remove need for co-located teams
Reduces G&A overhead costs of consulting firms
Advent of 24-hour development cycle