A New Product Development

Question: Describe about the purpose of developing a new product in the market is the economic growth, progress in technology and better standards of living? Answer: Introduction A New Product Development (NPD) gives emphasis on the significance of initiating a new product within the marketplace used for the success of the business. A new product when introduces in the market introduces a sequence of stages, begins with an idea of the products that is developed and launched in the market. The purpose of developing a new product in the market is the economic growth, progress in technology and better standards of living. Therefore, the learning of the process of NPD is important. The managing of NPD process becomes a challenge for a business as it is time sensitive and requires both human resources as well as financial. It is being seen that among seven ideas of launching a new product, about four of it enters development, only launching rate is one and half, and one succeeds. Research Aims and Objectives To identify the critical factors for each of the phase in NPD process To determine the critical factors as well as tools and techniques to evaluate the metrics Research Questions How the processes of NPD run in the global companies? What are the traditional differences in the NPD model and how is the process of NPD managed? Literature Review As new products are evolved in the market, management gains more knowledge about the products and take the decisions to launch it in the market. Based on the process of NPD, the new products are developed by reducing the risk level as well as decreasing those resources that in the end fails. A representation that used to capture the significant stages of the NPD process is known as BAH model. Based on surveys, case studies and in-depth interviews emerge to be a comparatively superior illustration of existing practices in the industry. The first stage is Product strategy that provides direction for the new product effort. It identifies the requirements of the strategic business that a new product complies with. The product strategy clears the goals as well as the objectives for the new product of the company. In summary, the strategy of an NPD project is the key success factor of a business. A return-on-investment of a company proves to be useful to achieve the goals to launch a new product. The second step is Idea generation to generate a number of different ideas which the firm can select to be the most reasonable one. Reconsidering the causes of NPD success and failure, it is identified that the information that are created within an organization has a rate of success lower than the generation of ideas outside the organization. The metrics track the ideas consist of the generation of ideas from the customers, enhancement of ideas from a group of ideas. The customer based ideas are the one-to-one interview with customers etc. Screening and Business Analysis: In screening, the initial analysis is based on resources and the process of completion. In the other hand, in business analysis, the ideas are estimated using the criteria of quantitative performance. After the process of screening, the analysis of the business clearly describes the products. Lack of market analysis and market research causes the failure of time as well money of the customers. If the new product meets the objectives of the company, then the new product go to the stage of development. Design and Development: In the development stage, the plans or decisions taken are transformed into deliverables. When the product is delivered in the market, then it should gain the competitive advantage and also gain the products revenue. As the product goes from one stage to another, the team should reconsider the position of the market, its products and modern technology to increase the success factor of the products. Therefore, it should be critical to reduce the development time. The final design of the product should meet their requirements. The customer thus becomes a member of the team to triumph over the technical problems in the development stage. Testing: The principle of testing is to provide and authenticate the entire project. The functionality of the product is critical to test the products as it is the aim to see whether the product meets with the attributes. Validation as well as testing of the products is necessary to gather the performance of it. Methods The methods that are used to enhance the ideas from customers are user methodology as well as the qualitative methodology of market research to study the relation of customers with the environment. The research is based on observing the customers and environment to understand the lifestyle as well as the culture of the customers. Dynamic time to market is a tool that predicts and tracks the process of the project. Testing of the products is necessary to record the performance of the products. Using qualitative data, managers take necessary actions to formulate required modification in products. Conclusion The success of any new product is a challenge for any companies. This research study proposes that to achieve success in the marketplace, the company should have a clear idea of their marketing strategy. This paper analyzes the process of NPD and identifies the ways that is used to improve the performance of their business. . Based on the process of NPD, the new products are developed by reducing the risk level as well as decreasing those resources that in the end fails.