All entrepreneurs and business owners understand the importance of new product development. In addition to that, they understand the importance of a successful new product development.

new-product-development

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One of the things to keep in mind is that there isn’t only one process to develop a new product and launch it on the market. However, one of the most successful ones is often referred to as the Stage Gate Process. This process was developed by Dr. Robert G. Cooper.

8 Steps Of The New Product Development

Step #1: Generating The Idea:

The first step in the new product development process is the generation of the idea. So, you will need to use both an external SWOT analysis and basic internal analysis as well as marketing trends to come up with new ideas. These should take into consideration factors such as costs of widespread and ROI among others.

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Step #2: Screening The Idea:

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While generating the idea is where it all starts, to get through the process the idea needs to be screened. And this is what is done during this stage.

During this stage, you must have already defined some criteria that the ideas need to comply with to pass to the next stage.

Step #3: Testing The Concept:

One of the things that you need to understand is that testing the concept isn’t the same as testing the marketing. The truth is that many people tend to consider them the same thing and this may lead to wrong decisions at this stage.

During this new product development stage, you should design due diligence, do patent research, among others. Make sure that you don’t forget to figure out whether the consumer will need, understand, and want the service or product that you are about to develop.

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Step #4: Business Analytics:

During the new product development process, you will need to create a system of metrics to ensure that you monitor progress. You should include variables such as the output metrics, the average time spent on each stage, the percentage of new product sales, among others.

While some product may not go ahead, you mustn’t discard it since it can still be useful for other products, for example, as well as it can be a great source for growth and learning.

Step #5: Marketability Tests:

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This is a crucial step during the new product development since you can test and then tweak the final product depending on the results that you get to get the best version of it on the market. Some of the things you can do include launching beta versions, arranging private test groups, among others that can help you with these last-minute tweaks and improvements.

Step #6: The Technical Parts:

During this stage, the production team will need to make all the plans necessary to make the product. However, they aren’t the only team working. The marketing team will be working on developing the best ways to distribute the product and the finance department will be in charge of providing the necessary financing to produce the product.

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Step #7: Commercializing The Product:

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This is the time that you and your entire team have been waiting for and for which you worked so hard – this is the stage where your new product development is going mainstream. This means that your product will now be available to be bought by consumers and your technical support is continuously alert.

One of the things that you should consider doing during this stage is changing the advertisements.

Step #8: Post Launch Review And Perfecting The Price:

Now, it is time to go back to your new product development and revise it. Understand what went well and what could have gone better and faster. Even if you have a successful new product development in hands, this doesn’t mean that you and your team can’t do it better in the future. This is also the time to check the price at which you are selling the product. Many companies opt for having an initial price and they then increase it.

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