What is New Product Development? The 7 Stage Process

1. What is New Product Development? The 7 Stage Process Having the ultimate idea for a new product is satisfying. But it means nothing if you do not have a plan to realize it. However, thinking is easier than actually accomplishing the task. And for people who have never experienced the new product development process, there is a need for a guide. There are a total of 7 product development stages that you need to know before you start the process. The process is lengthy and can require repetition to get results. But the process is necessary to ensure that the product that reaches the customers is the best you have to offer. What is new product development? Product development refers to all the stages of new product development that bring the idea to life. In essence, product development is the product’s entire journey. Generally, a new product can be a breakthrough, a never-seen-before product that will bring change to the industry. Or, it can be a competitor to products already available in the market with slight modifications.

2. In the IT world, new product development is a new idea of digital products that help solve a specific target audience problem. 7 stages of new product development process When it comes to the product development process, especially in the IT field, you will need someone with knowledge of technologies. Broadly speaking, in every industry, there are 7 stages of product development that businesses follow. At the core, the steps will remain the same, but depending on the product you are creating, the nitty-gritty details will change. Stage 1. Ideation New product development starts with the product's ideation. Generally, the first idea you have in mind might not be the best. Hence, it is essential for businesses and people to generate a range of ideas. Here, the task is to host several brainstorming sessions that focus on problem-solving a specific customer problem. The ideas created here need not be perfect. In fact, the main reason for their inception is to throw ideas around. Once you have a list of ideas, shortlist the raw ideas that require further discussion. To find the perfect idea, first, focus on customer problems. Firstly, describe the problem clearly. Then, identify the people who are suffering from the issue. You can focus on the problems your business is facing to create a solution for all. Once you have shortlisted, check the feasibility of each problem. You can use the 4U approach to qualify each item on the list. Here, the focus is on finding the appropriate problem the product will address. Moreover, find out if it is an unavoidable problem that requires people/businesses to invest or is it a choice. Furthermore, find out if the problem needs a solution urgently in the market. If it is an urgent problem, you can create an original product that will get easy traction. Lastly, look for underserved issues. If the problem does not have any solution, then your idea has great potential. Once you have identified the problem, it is time to find appropriate solutions. Every problem gives rise to one potential new product development. Take the time to brainstorm creative solutions. Even if the market has a solution to the problem, you can create a completely unique method of solving the same problem. It will allow for more competition and sales.

3. Stage 2: Screening Ideas After getting a host of ideas, it is time to choose the ones that make the most sense. Here, you want to find the idea with the maximum chances of success. Invest some time discussing the ideas in an internal review. Here, you want to leverage the knowledge of industry leaders to screen the ideas. Proof of Concept (POC) is necessary as it helps determine the idea's feasibility. Investing too much time in an idea that is not feasible to build is a waste of time. Look at the technical aspects with the professionals during this part of the new service development process. SWOT (Strength, Weaknesses, Opportunities, and Threats) analysis of ideas can also help shortlist product development ideas. The idea should be unique so people are willing to pay for the service. Stage 3: Concept Development and Testing Once you have an idea about the product you want to create, it is time to develop the concept thoroughly and test it. This step aims to discover the problems that will arise with various approaches, and the experts can course-correct as the situation arises. The best software development company will first create an insightful picture of the user's perspective. Then, they need to calculate the gain/pain ratio to determine the product's effectiveness. Conduct a competitor analysis to find out what they lack, find the scope for improvement, and determine the white space in the market. Then, list the innovative features and create a value proposition chart. After the value proposition, you can present it to select customers. Their feedback will help you decide if you need to go back to the drawing board or if you are heading in the right direction. Stage 4: Marketing Strategy or Business Analysis The marketing strategy includes drafting a way to target the audience. You can use the 4Ps of the new product development process to get relevant information. Use the data to decide on viable financial investments for the project. You must create a pricing model at this point.

4. Stage 5: Product Development After completing a new product development idea, market strategy, and business analysis, start with the product life-cycle development process. Create the prototype of the product, and find the minimum viable product. The prototype helps give a visualization of the product. After completing the development, launch the minimal value product in the market to measure response. Use Agile Product Development to create incremental and iterative development while improving communication and collaboration. The system helps accelerate the software development process. Stage 6: Deployment After you launch the minimum value product, shift to development and deployment of the product in the live environment. Commit to an idea, build new features, alpha deployment, beta deployment, and production deployment. Stage 7: Market Entry & Commercialization Commercialization includes a range of strategies to ensure the success of the product. Start with marketing the concept and not the product. People like buying solutions. Create an engaging and enticing brand voice. Every piece of communication you have with the clients should match the brand voice. Take the time to create engaging webinars to promote the findability and discoverability of the product. What are the benefits of New Product Development Process The stages of new product development process have several benefits for an organization. Technical Feasibility: The process helps determine the technical feasibility of the product. Faster Time to Market: With the agile methodology and proper planning, it will take less time to present the world with the new product. Address the Customer Needs: The process helps businesses address customer needs at the root level.

5. Improves the chances of success: With new product development and innovation, you can have a better chance at success. Follow The Sequence of New Product Development Process The best software development company does follow the process of new product development stages in sequence. The hierarchy of steps is arranged in a way that helps guide future decisions. For example, it is only after marketing and business analysis that you can determine the right financial allotment for the development of the complete product. Moreover, it makes going back to the drawing board easier, in case you do not find the winning idea on the first try. Conclusion Innovation is the key to staying relevant in fast-paced industries. As Information Technology is among the biggest and most volatile industries in the world, the new product development process is constant. Following the appropriate steps and the correct procedure can help you create new products that engage customers and get results. An idea without a plan is nothing but a dream. So, put your ideas into action during the stages of product design, and you can create new opportunities for your business. FAQs What is New Product in Development? New Product Development (NPD) refers to the practice of bringing new products or services to the marketplace. Businesses need to adapt as per the changing times, and it means that any change in the consumer preferences, competition, advancement in technology, etc., should push businesses to engage in the process. What are the 7 Stages in the New Product Development Process? The seven stages of new product development process include: Ideation Screening Ideas Concept Development and Testing Marketing Strategy and Business Analysis

6. Product Development Deployment Market Entry and Commercialization Source Link: https://bit.ly/3QXDAOA