Strategic Elements of Product Development

Topics: New product development, Innovation, Idea Pages: 5 (1634 words) Published: November 2, 2012
New Product Development Process
The new product development process is the second strategic elements of product development. It is important for company to manage their new product into the market. As stated by Cooper (1994), “a formal blueprint, roadmap, template or thought process for driving a new product project from the idea stage through to market launch and beyond” (p.3). Crawford and Di Benedetto (2011) also mentioned that the new product process is the way from idea to the period of establishing and beyond for a new product to go through. There are five phases that a new product has to go through.

The first phase of the new product process is opportunity identification and selection. In this first phase, opportunities are being determined creatively. New products opportunities are being generated as spinouts of the current business operation, latest products suggestions, modification in marketing plan, alteration of resource and the demand in the marketplace (Crawford & Di Benedetto, 2011). In order to yield these opportunities, three main streams of activity are functioned as guidance to the company. The three main streams are ongoing marketing planning, ongoing corporate planning and special opportunity analysis. From these three activities, opportunities such as an underutilised resource, new resource, external mandate and internal mandate can be discovered. Then these opportunities are being examined comprehensively and completely in order to make sure that there is sales potential in the current market. All resources from the opportunities are being evaluated and defined carefully. After that the research opportunities are ranked and those that are conflicted with the new product innovation strategy are rejected. The most strategic opportunities are selected to lead into the next phase (Crawford & Di Benedetto, 2011).

Sometimes, opportunity identification can be done quite well to figure out the demand of current market. But most of the time, it seem to be a little bit doubtful. Therefore, the next phase, concept generation, is carried out to focus more intense towards the opportunity and set of intellection tools are developed. When the major opportunities had been identified and selected, customer involvement begins in this phase (Crawford & Di Benedetto, 2011). Firm is going to make a preparation for the ideation by developing a team for the ideation and screening stages. Inside sources which are among the employees and outside sources which are customers are sources to generate the new product concepts. Markets are being analysed in-depth throughout the problem that had been identified in the ideation team analysis. Market surveys are carried out and any needs and wants of customers are being determined precisely. Later, the problems are being solved by searching any possible solutions which is known as the new product concepts. All new product concepts are collected from undefined ideas to working models (Crawford & Di Benedetto, 2011). Information about the customer utility, technical feasibility and cost of a new product are provided to designers from the concept generation and testing alternatives that incorporate the “fuzzy front end” of new product development (Dahan & Mendelson, 2001).

The third phase in new product process is concept or project evaluation. Before the development phase takes place, the new ideas are to be evaluated, screened and sorted out as in the second phase. Then in this third phase, pool of new product concepts are being filtered and fully screened by testing the concepts to view thoughts of potential customers on the concepts (Crawford & Benedetto, 2011). As stipulated by Salustri (2005), concept evaluation defined as a form of analysis which also known as stress analysis that seldom takes on highly quantitative aspects. The third phase begins with screening which is a pre-technical evaluation on the new product concepts. This screening process is associated with...
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