The new-product-development process in 5 steps

As markets and consumer needs evolve, companies need to develop new products to stay competitive. However, the new-product-development process can be complex and challenging, requiring a well-defined process. In this article, we will discuss the seven steps involved in the new-product-development process, from idea generation to commercialization.

1.    Idea Generation: The first step in the new-product-development process is idea generation. This involves generating new ideas for products that meet the needs of consumers. The sources of new product ideas can come from a variety of sources, including employees, customers, and competitors. Companies can also use market research to identify unmet needs and consumer trends.

2.      Idea Screening Once potential product ideas have been generated, the next step is to screen them. Idea screening involves evaluating the feasibility of the ideas based on factors such as market demand, competition, technical feasibility, and profitability. This stage is crucial in the new-product-development process, as it helps filter out unviable ideas.

3.      Concept Development and Testing After screening the ideas, the next step is concept development and testing. In this stage, companies develop a detailed concept for the product, including its features, benefits, and target market. The concept is then tested with potential customers to gather feedback on their interest and purchase intent. This feedback helps refine the concept and identify potential issues before investing in further development.

4.      Business Analysis Once the concept has been tested and refined, the next step is business analysis. This stage involves a more detailed analysis of the product's potential market size, pricing strategy, distribution channels, and profitability. Companies use this information to make decisions about whether to move forward with the product development process or abandon it.

5.      Product Development If the business analysis is favorable, the next step is product development. This stage involves designing and engineering the product and developing a prototype. This stage can be lengthy and requires significant investment, but it is critical to ensure the product meets consumer needs and is technically feasible.