New Product Development Process

What is the product development process?

The product development process is the entire process for taking a new product from an idea to market. The steps in product development include identifying new demands and opportunities in the marketplace, conceptualizing a solution, outlining the long-term product plan, building а Minimum Viable Product, creating the design, developing the product, and mapping the marketing strategy.

Benefits of the new product development process

According to Mckinsey global institute data, only 1 out of 7 ideas result in a successful product, and the failure rates for newly launched products are between 25%-45%. Using a structured approach, you’ll stand a greater chance of avoiding any pitfalls resulting in your new product’s failure.

Choosing where to spend your company’s valuable time and resources will be critical to your success. The ability to screen new products and services before wasting resources could be the difference between the nail in the coffin of your career (or business) or a wildly successful product launch.

Here are some of the main advantages you’ll gain from using the new product development process.

1. Create an innovative culture – new products require new ideas. Creating a culture of innovation, where every idea will be heard and tested no matter their role and seniority, will help your business source new ideas.
2. Keep pace with your consumers – your consumers’ habits are continually changing due to volatile economies and many other reasons. The new product development process allows you to keep base with your consumers and ensure your product is still relevant.
3. Discover new opportunities – by focusing on your customer’s needs and not your shareholders, you’re able to uncover new opportunities and further your business’s growth and development.
4. Drive higher value proposition –design products that better match the needs of your consumers.
5. Improve your brand reputation – consumers who view companies as innovative are often more inclined to test out their latest products and back your focus on innovation.
6. Enjoy faster time to market – a streamlined process helps you identify and create plans for any bumps in the product development journey.
7. Avoid feature creep – this process allows you to better manage and respond to requests for more and more features.
8. Avoid common pitfalls – evade many of the snares which lead to failure by identifying them first:

• Failure to meet your customers’ requirements
• Setting the price too high
• Misaligned advertising
• High development and resource costs
• Stiff competition
• Overestimating the market size