In this article, we will take a closer look at the process of NPD and some of the stages involved.
Updated 23 Nov 2022, Published 21 Oct 2022
New Product Development (NPD) refers to the process of delivering a new product, service, idea, or technology to the market. The process usually follows a structured approach that involves several stages, from ideation and concept development to market research, product launch, and post-launch evaluation.
NPD is a crucial product development process for any company that wants to stay competitive and grow its business. It is a complex and iterative process requiring the involvement of several different departments, from design and engineering to marketing and sales.
New product development is important for a number of reasons, as it helps businesses:
New product development is not without its challenges, but the rewards can be well worth the effort. By carefully planning and executing a new product development strategy, businesses can reap the many benefits that come with successfully bringing a new product to market.
4 Benefits of New Product Development
New product development is essential for any company that wants to stay competitive and relevant in today’s market. By constantly innovating and developing new products, companies can remain at the forefront of their industries and continue to grow and thrive.
There are many benefits of new product development, including the following:
7 Stages of New Product Development
Idea generation is the first stage of the NPD process. In this stage, businesses generate ideas for new products that they think will be profitable and appeal to their target market. This can be done through brainstorming sessions, customer feedback, market research, and other methods.
After generating a list of potential ideas, businesses must then screen and evaluate them to see which are worth pursuing further.
This evaluation is important as it helps businesses focus their resources on the most promising ideas and avoid wasting time and money on those not likely to be successful. Factors that are typically considered during this stage include market potential, technical feasibility, and manufacturing cost.
After completing the screening and evaluation process, it is now time to move on to concept development. This is the stage wherein a detailed version of the idea is built to create a concept related to the user stories.
This stage ensures that problems or issues are discovered early on in the process and that teams can provide solutions to problems early. This also helps to stop technical debts from accumulating.
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Once a business has identified a promising product idea, it will need to conduct a thorough analysis of the opportunity. This includes assessing the needs of the target market, understanding the competition, and developing a business model.
This stage of new product development is important as it provides insights that can help determine whether or not the product is likely to be successful.
In the product development stage, the product and production process is finalized. The stage starts with creating a product prototype followed by a Minimum Viable Product (MVP). After this, the product is then designed and created. Lastly, test marketing and the business analysis are finalized. All that remains is to produce the product and get it into stores.
Once everything is finalized, it is now to shift to deploying the product to the market. This includes the following stages:
The last and final stage of new product development is commercialization. This is when the product is finally launched into the market. All products must go through a successful commercialization stage in order to be profitable and make it to store shelves.
The commercialization stage includes:
To better understand the concept of new product development, we have provided some examples to give you an idea of how it is applied to businesses.
Let’s say you are the head of a small business that sells cosmetics. You and your team have decided to branch out and begin selling skincare products in addition to your current inventory. This would be an example of new product development.
New product development can also take the form of expanding into new markets. For example, if you currently sell your products exclusively online, you may decide to open a brick-and-mortar store in order to reach a wider customer base.
Below are some examples of new product development on popularly known businesses:
When it comes to developing new products, the key to success is to create a process that is efficient, repeatable, and scalable. That's where SafetyCulture comes in.
SafetyCulture (formerly iAuditor) is the world's most widely used inspection software and can help streamline your new product development process. With SafetyCulture, you can create custom inspection templates, track progress and results, and generate reports—all from your mobile device.
Let's take a look at how SafetyCulture can help you streamline your new product development process and bring your products to market faster.
Shella Marie Ang
Shella Marie Ang is a content contributor for SafetyCulture. Cultivating her experience in social media marketing, virtual assistance, and SEO has helped her create compelling content for websites and blogs. Her medical background also has given her an edge when it comes to writing medical and health-related content. She loves reading in her free time and being around other creatives.
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