Top 7 Stages of New Product Development Procedure

Everything in the business sector needs to be thoroughly thought out and planned. This guideline does not change when a brand-new product is introduced.

The process of getting a new product ready for release ought to be anything but haphazard. A specific new product development process with distinct steps exists. This could be a difficult task for aspiring business owners.

However, following the correct product development approaches can guarantee the best outcomes when the product arrives at the final stage and encounters the market.

Thus this article will help you to avoid common mistakes during the development cycle and ensure that your product is able to penetrate the market. So have a look at the following best product development strategies. 

What is New Product Development?

New product development (NPD) is the method of transforming an idea into a functional software product. This process is about capturing the market opportunity that rotates around consumer needs, studying the idea’s feasibility, and providing working software.

Read more: How to Build a Successful Product Development Roadmap?

Product development, on the other hand, is a catch-all phrase that adheres to the six stages of the software development lifecycle and focuses on launching products that have already passed the Proof of Concept phase (POC).

The new product development policy includes working on a completely new idea, where the indecision about its development and following adoption is high.

Some of the prosperous new product development examples are Trello for task handling and tracking, Zoom for video contact, Dropbox for cloud repository, Figma for designers operating remotely, Airtable for relational information management, etc. 

Top 7 Stages of New Product Development Procedure

1. Idea Generation

The foremost stage in the product development process is idea generation which is a lot similar to brainstorming. At this step, the objective is to gather a pool of creative concepts and visions. Any significant invention or product begins with a bright idea.

Read more: Idea Validation: Important Ways to Validate a Business Idea

You can ask your employees, particularly those in direct communication with your consumers the following questions:

• What do they think your clients require?
• Do they have a detailed regular request?
• What are their objections usually regarding?

The answers to such queries can encourage you to come up with useful and practical visions.

Another excellent origin is your consumers themselves. The best method to understand what the customers require is by asking them. 

You should listen to their feedback, launch surveys, and collect data that can help you generate new ideas.

Additionally, SWOT research is also a considerable manner to form ideas. SWOT analysis is recognizing your company’s strengths, weaknesses, opportunities, and threats.

SWOT study enables you to determine voids in your business approach. By comparing these to your opponents and to the market conditions as well, you will have some conceptions of what your following product should be.

2. Idea Screening

The second phase of the new product development strategy is made on the first. You have collected as multiple ideas as you could, and set them on a list. So now it is time to remove impaired ideas from that list.

Filtering your conceptions means you have to assess each one of them depending on particular factors. ROI, affordability, and market possibility are three primary elements that should define the utility of these product ideas.

ROI is an equation that calculates how worthwhile an investment is by separating the net profit by the portion of the money invested in that product. Finally, the market possibility is the gauge of sales gains of the product when it arrives in the market. 

3. Development and Testing of Concept

The second phase’s major objective was to discover the best product concept. The third step of the new product development strategy strives to shift this product vision into a product concept. 

So what is the difference between these two? A product idea is a thought for a product that the business can see itself marketing to consumers. Meanwhile, a product concept is a thorough version of the hypothesis expressed in meaningful customer terms.

Read more: Why Should You Choose Custom Web Development Over WordPress Development?

The trial is the appropriate course of action after developing a correctly planned concept. The consumer should be able to picture the notion if it has been correctly created. Introduce your idea to a select group of potential customers, then evaluate it.

Further, you can modify your concept consequently and try to keep testing each version of your concept till you get the best outcome.

4. Business Investigation 

This stage of the new product development strategy is about placing profit anticipations. You do currently have a distinct product concept. Therefore, the creation of a thorough marketing strategy, which involves identifying your target market and establishing product positioning, is required in this step.

Product positioning is an aspect of a marketing program that tackles customer demands, competitive tensions, and communication media.

The business study also includes product cost, allocation, and marketing funding. Once again, all these elements and suggested methods must be assessed and must grow at meeting the company’s goals and customer anticipations.

5. Development of Product 

At this pinpoint of the new product development cycle, your product is prepared to evolve into a prototype or the foremost version of a product.

The product will be physically in your possession, and you will test it once more. It is acceptable to state that the entire procedure involves learning by doing methodology. You can get feedback from customers on your product's style, form, and build quality.

Read more: Importance of Producing a Minimum Viable Product (MVP)

Depending on their thoughts you can apply some refinements and tweaks to your prototype. Your product should achieve its best, viable, form before it is ready for the following step.

6. Market Testing of Product 

At this step, you should develop and release more prototypes in a few locations, especially the ones nearest to your target market. Also, analyze the reaction of the market to your goods. Do clients adore it? What is incorrect with it, if not?

Further, you must assess the cost of your product, and the count of sales it makes, in addition to your marketing statements. Check if your marketing messages are strong enough to engage your clients. 

The target of this stage of the new product development function is to validate the idea and the entire surroundings of the product.

The root idea here is to calculate if anyone would really spend on your product. That is, do individuals like it sufficiently that you’d be capable of expense enough money to divert a profit? 

7. Launch and Commercialisation

Depending on the outcomes of market testing, you must now add the finishing touches to your product.

The following step will be the final and most crucial step, launching. Thus, this is your last prospect of transforming anything about the product. It contains your initial view, its expense, and everything in between.

Your product launch is now scheduled. Be sure to precisely predict the amount of demand there is for your product on the market before you launch it. Make the required advertising and use a successful marketing plan.

Ensure your marketing wraps up digital media as well. Train your consumers for the launching of a new product. Decide when and where your product will be released, this is critical to your product’s victory.

Further, maintain tracking your development closely, look at its numbers, and study them. It will aid you in learning from any errors and avoiding them in the future.

Final Words

Remember that introducing a brand-new product is similar to doing something for the first time. There are several assumptions and projections in it. You can build a product that meets the needs of the market with the aid of the new product development cycle.

In order to get the greatest results, the majority of the stages of product development include attempting and testing the product more than once. Don't be afraid to take a chance or attempt something new, as long as you test it out before launching.

Moreover, contact Noetic IT Services immediately if you are looking for a reliable and reasonable new product development organization to generate your products.