Stimulates heals renews & reinvents business.
New product development creates new products to compliment the current product line or replace products nearing the end of their service.
Every business needs new blood in the form of new products to add to the product line, hence the new product development process.
All products have a life cycle of some sort, which means at some point it will be fiscally sound for a business to develop a new offering to either compliment or, to replace the current offerings.
The best businesses operate as well oiled machines. All parts, departments, divisions, and aspects co-ordinate in an interactive and orchestrated manner. The reasoning is that quick response of all parts and phases is required to instantly adjust, react, and change course when found necessary to be able to efficiently compete in today’s market place. There is little time or room for error.
The new product development process
is the most costly aspect of a business in terms of man power, time, and monetary expense. However to survive, compete, and thrive it is absolutely essential.
Some reports are that two thirds of all development projects fail at some point of the life cycle with most of the failures occurring in the marketing phase.
After a company has already had great expenses in terms of manpower, time, and money, not to mention they were preoccupied with the failed project when they might have made a better choice.
As you can now probably see the efficiency that a company performs the new product development process will in all likelihood determine the success, or failure of that company.
A little success, and a company becomes a household name, this is how all the businesses you have heard about became famous. But it is not good enough to ride on fame every company needs to run a tight ship and launch another great product, again, and again. This means that the new product development process mush happen again, and again.
There are endless types, and styles of businesses. Many are brick and mortar, some are exclusively internet. Every business has some form of a product that they bring to their marketplace.
The basis of the new product development process is: 1) the idea, 2) concept, 3) prototype, 4) marketing test, 5) launch.
Many variations to the basic form are implemented; it can be easily argued successfully this is the singe area of any business that determines the business success or failure. Many businesses have come and gone as a result of not staying on top of this process and modifying accordingly.
Even governments and politicians need to adopt this concept to survive.
When you really think about it this new product development concept could be applied in one form, or another to relationships of all types.
Every business from the ones that are no more than a glimmer, or twinkle in someone’s eye to huge corporations like Apple, GM, and GE, have to implement new product development in some fashion.
A contractor may simply ask a prospect what their needs are, what the timetable is, and what the budget is. Decide to draw up a contract, and provide the service or not.
For some others it may be as simple as an idea, a little research, a proposal (advertisement), checking market acceptance, product creation, and launching. The product may actually be marketed and sold even before it is created. How is that for keeping costs down? This way you know the product sells because it sold before it was even created. This is the preferred method of many internet marketing concerns.
However, when you have a more complex business a more complex plan and approach is required.
In any case fish, or cut bait.