Question

List and briefly explain the various phases in the new product development process.

1. Feasibility Analysis 2. Product Specification 3. Process Specification 4. Prototype Development 5. Design Review 6. Market Test 7. Production Introduction 8. Follow-up Evaluation

I was provided these points as the phases but i have no explanation about them or what each step is

Answer 1

It is very important to stay successful in the industry or business, an organization needs to improve and develop new products. New product development is a crucial and complex process that the businessman needs to focus strategically for survival and provide the best quality product to the end consumer. There are various phases of the new product development that are discussed in the below points,

a. Idea Generation:

Idea Generation is the first stage that the business organization needs to focus initially and find the methods for coming up with new ideas for product development that are better than already available in the market or new product in the market that would have paying-consumers in the market. The organization can find new ideas from various sources such as existing customers, clients, suppliers, news sources, business journals, and seminars. It is the foundation of new product development.

b. Idea Screening or product specification

The next phase of the new product development is to screen the various ideas and select the best one that would be suitable for the market and are able to sell in the market. The organization needs to take opinions from industry experts, teams, staff, and customers to avoid cost and time on un-marketable products or services. Idea screening refers to choose one viable idea to produce the new product or service that would beneficial for the consumer as well as the organization.

c. Concept Development and Testing or Process Specification

In this phase of product development, the organization needs to develop concepts and processes to develop a new product that was chosen from the screening process. The organization needs to analyze the idea in terms of costing, duration, required resources, and business plan. The organization needs to conduct a SWOT analysis, porter 5 model's analysis and other required analysis to check the market and technology to develop the new product. The concept should be detail-oriented and specific to the industry, product category, and required technology.

d. Product Development and Marketing Strategy or Prototype Development

At this phase, the actual product or service would be manufactured or developed with the technology and resources analyzed in the concept development process. At this stage, the beta version and prototype would be developed to test the market with various marketing strategies such as sample distribution, beta testing, survey, seminars, etc. Based on the results, the business organization needs to decide whether they should continue with the product or leave the idea at the stage.

e. Business Analysis and Marketability test or Feasibility Analysis

The organization needs to evaluate the business attractiveness and adoption of the product by the consumers and market and need to develop metrics to track the sales, profit, costs, and other parameters to finalize the product for commercialization. The organization needs to find whether these factors satisfy the company objectives and policies and the organization has resources and team to commercialize the product or service into the market. The product could not be profitable for the organization but the product would be beneficial and important for the organization and future products, so the organization needs to analyze these factors as well.

g. Commercialization or Product Introduction or Launch

This is the final stage of the new product that helps the organization to develop the product in huge quantity and fulfill the demand of the consumers and market. Consumers are buying the product and are happy with the quality, and the organization are getting enough orders to fulfill the demand of the consumer with the same product. The organization need to make proper strategies to choose suppliers, distribution network, marketing strategies and pricing strategies in this step of new product development.