New Product
Development (NPD)
Companies typically see new product development
as the first stage in generating and commercializing new products within
the overall strategic process of product life cycle management used
to maintain or grow their market share.
In business and engineering, new product development is the term used
to describe the complete process of bringing a new product or service
to market. There are two parallel paths involved in the process.
There are several general categories of
new products. Some are new to the market like DVD players, some are
new to the company like Game consoles for Sony, some are completely
novel and create totally new markets (ex. the airline industry). When
viewed against a different criteria, some new product concepts are merely
minor modifications of existing products while some are completely innovative
to the company.
To reduce the time that
the new product development process takes, many companies are completing
several steps at the same time. Most industry leaders see new product
development as a proactive process where resources are allocated to
identify market changes and seize upon new product opportunities before
they occur.
Many industry leaders see new product development
as an ongoing process in which the entire organization is always looking
for opportunities.
Because the new product
development process typically requires both engineering and marketing
expertise, cross-functional teams are a common way of organizing projects.
In those industries where products are technically complex, development
research is typically expensive, and product life cycles are relatively
short, strategic alliances among several organizations helps to spread
the costs, provide access to a wider skill set, and speeds the overall
process.
People respond to new products in different
ways. The adoption of a new product development technology can be analyzed
using a variety of diffusion theories such as the Diffusion of innovations
theory. it include economical support of social sector
|
