The Innovative and New Product Development (NPD)
Improving and updating product lines is crucial for the success for any organization. Failure for an organization to change could result in a decline in sales and with competitors racing ahead. The process of NPD is crucial within an organization. Products go through the stages of their lifecycle and will eventually have to be replaced There are seven phases of new product development. The approach of the three companies to NPD will be analyzed in relation to the NPD phases as discussed briefly below: Phase 1: Idea generation
New product ideas have to come from somewhere. But where do organizations get their ideas for NPD? Some sources include: • Within the company i.e. employees in the research and development and or corporate spies. • Competitors.
• Customers- their user habits and patterns.
• Distributors, Supplies and others.
Phase 2: Idea Screening
This process involves shifting through the ideas generated above and selecting ones which are feasible and workable to develop. Pursuing non feasible ideas can clearly be costly for the company. Phase 3: Concept Development and Testing
The organization may have come across what they believe to be a feasible idea; however, the idea needs to be taken to the target audience. What do they think about the idea? Will it be practical and feasible? Will it offer the benefit that the organization hopes it will? Or have they overlooked certain issues? The idea and concept is taken to the target audience not a working prototype at this stage. The concept is tested by asking a sample of prospective customers what they think of the idea. Phase 4: Business Analysis
The company has a great idea, the marketing strategy seems feasible, but will the product be financially worth while in the long run? The business analysis stage looks more deeply into the cash flow the product could generate, what the cost will be, how much market shares the product may achieve and the...
Please join StudyMode to read the full document