There’s no question that we live in a very competitive and dynamic world. Everything keeps changing and the new product development process is a crucial when you want to survive.
When you are a small business owner, you know that you are facing a fearless competition against gigantic multinationals. So, you need to ensure that you continuously update your products to current trends.
Simply put, the new product development process is a cycle where a new product is created. It goes from a single concept to the introduction to the market.
Everything begins with an idea. It’s as simple as that. So, you need to look at sources for new products and these may come from journals, newspapers, competitors, suppliers, employees, and, obviously, customers.
The reality is that small businesses tend to be a bit limited in what comes to technical research-based idea generation techniques. Nevertheless, it is important to keep in mind that this stage is crucial.
When you have a list filled with new and out of the box ideas, then you enter on phase two where you need to screen them. Ultimately, this phase serves to determine which ideas are actually viable.
To make things right, businesses need to seek opinions from multiple sources again. These may include other businesses, customers, and workers. In addition, there are other criteria that need to be taken into consideration within this stage. These include competition, legislation, and changes in technology
This is the stage when companies need to do their research to discover the potential costs, revenues, and profits they can make from the product.
In order to do this, a business should conduct a SWOT analysis to identify the strengths, weaknesses, opportunities, and threats that are on the market. Then, you will need to set out a market strategy to identify the product’s target group.
Product development is the fourth phase of the new product development process and this is when the company or organization actually designs and manufactures the product.
Notice that the development stage actually begins a bit earlier since it is necessary to produce a prototype for market testing. Then, and depending on the results you get with this prototype, you will either start producing the product or not.
Finally, we reached the last phase of the new product development process. his is the stage where you already have a large production and commercialization of the new product. This is when businesses should consider som campaigns to promote their new product.
As you can see, the new product development process is not as simple as you may have imagines. The reality is that due to the high competition, small businesses simply can’t afford to launch a product when they don’t even know if it is going to sell or not. So, a new product development process is very important.