In business and engineering, new product development ( NPD ) covers the complete process of bringing new products to the market. The main aspect of NPD is product design, along with various business considerations. The development of new products is widely described as transforming market opportunities into products available for sale. The product can be tangible (something physical touchable) or intangible (such as service, experience, or belief), although sometimes other services and processes are distinguished from "products." NPD requires an understanding of customer needs and desires, competitive environment, and market trait. Cost, time and quality are the main variables that drive customer needs. Aiming at these three variables, the company develops sustainable practices and strategies to better satisfy the needs of customers and increase their own market share with the development of new products on a regular basis. There are many uncertainties and challenges facing the company during the process. The use of best practices and the removal of communication barriers is a key issue for NPD management.
Video New product development
Struktur proses
The product development process usually consists of several activities that the company employs in the complex process of delivering new products to the market. A process management approach is used to provide structure. Product development often overlaps with engineering design processes, especially if new products are developed involving math and/or science applications. Each new product will pass through a series of stages/phases, including ideas among other design aspects, as well as the introduction of manufacturing and markets. In highly complex engineering products (eg airplanes, autos, engines), the NPD process can also be complicated about personnel management, milestones and results. Such projects usually use an integrated product team approach. The process for managing large-scale complex engineering products is much slower (often over 10 years) than is used for many types of consumer goods.
Product development processes are articulated and broken down in various ways, many of which often include the following phases/stages:
- Fuzzy front-end (FFE) is a series of activities used before the more formal and well-defined requirements specification are completed. The requirements speak to what the product must do or have, at varying degrees of specificity, to meet the needs of the market or perceived business.
- Product design is the development of high-level design and level of detail of the product: which is changing the terms what to be specific how this particular product will meet the requirements the. It usually has the most overlap with the engineering design process, but it can also include industrial design and even pure aesthetic design aspects. On the marketing and planning side, this phase ends in the pre-commercialization analysis phase.
- Product implementation often refers to the later stages of detailed engineering design (eg purification of mechanical or electrical hardware, or software, or other goods or product forms), and a testing process that can be used to validate that the prototype actually meets all the specified design specifications.
- Fuzzy back-end or the commercialization phase represents the action steps at which production and market launches occur.
The front-end marketing phase has been well researched, with the proposed valuable model. Peter Koen et al. provides a five-step front-end activity called front-end innovation: opportunity identification, opportunity analysis, genesis ideas, idea selection, and idea and technology development. It also includes machines in the middle of five front-end stages and possibly external obstacles that can affect the outcome of the process. The machine represents the management that drives the activity described. The front end of innovation is the area of ​​greatest weakness in the NPD process. This is mainly because FFE is often chaotic, unpredictable and unstructured. Engineering design is the process by which a technical solution is developed iteratively to solve a given problem. The design stage is very important because at this stage most of the product life cycle costs are involved. Previous research has shown that 70-80% of final product quality and 70% of all product lifecycle costs are determined in the product design phase, therefore the design-manufacturing interface represents the greatest opportunity for cost reduction. The design project lasts from a few weeks to three years with an average of one year. The Design and Commercialization phase usually begins a very early collaboration. When the concept design is completed, it will be sent to the factory for the prototype, developing the Concurrent Engineering approach by implementing practices such as QFD, DFM/DFA and more. The output of the design (engineering) is a set of product and process specifications - mostly in the form of drawings, and output from manufacturing is a ready-to-sell product. Basically, the design team will develop images with technical specifications that represent future products, and will deliver them to the manufacturing plant for execution. Solving product/process match problems is a high priority in information communication design because 90% of development effort should be removed if any changes are made after the release to manufacturing.
Maps New product development
Model
The conceptual model has been designed to facilitate a seamless process. The concept adopted by IDEO, a successful design company and consultant, is one of the most researched processes in terms of new product development and is a five-step procedure. These steps are listed in chronological order:
- Understand and observe markets, clients, technologies, and limitations of problems;
- Synthesize the information collected in the first step;
- Visualize new customers using products;
- Prototype, evaluate, and refine the concept;
- Application of design changes associated with more technically advanced procedures and therefore this step will require more time.
One of the first developed models currently used by companies in the NPD process is Booz, Allen and Hamilton (BAH) Models, published in 1982. This is the most recognizable model for the underlying NPD system that has been put forward. This model is the foundation of all other models that have been developed afterwards. Significant work has been done to suggest a better model, but in reality this model can easily be connected to a BAH model. The seven steps of the BAH model are: new product strategy, idea creation, filtering and evaluation, business analysis, development, testing, and commercialization.
The pioneer of NPD research in the consumer goods sector is Robert G. Cooper. Over the past two decades he has done a significant job in the NPD field. The Stage-Gate model developed in the 1980s was proposed as a new tool for managing new product development processes. This is mainly applied to the consumer goods industry. The benchmark APQC 2010 study reveals that 88% of US businesses use a gate-stage system to manage new products, from ideas to launch. In return, companies that adopt this system are reportedly receiving benefits such as increased teamwork, increased success rates, earlier failure detection, better launch, and even shorter cycle times - reduced by about 30%. These findings highlight the importance of the gate-stage model in the field of new product development Over the past few years, the Lean Startup movement has grown in popularity, challenging many of the inherent assumptions of the stage-gate model.
Marketing considerations
There are a number of proposed approaches for analyzing and responding to new product development marketing challenges. Two of these are the eight stages of the Peter Koen process from Stevens Institute of Technology, and a process known as the front end fuzzy.
Fuzzy Front End
Fuzzy Front End (FFE) is a messy "start up" period of new product engineering process development. This is also referred to as "Front End of Innovation", or "Idea Management".
At the front end where the organization formulates the concept of the product to be developed and decides whether or not to invest resources in further development of the idea. This is the phase between the first consideration of an opportunity and when it is considered ready to enter the structured development process (Kim and Wilemon, 2007; Koen et al., 2001). It covers all the activities of the search for new opportunities through the establishment of a germ of ideas for the development of appropriate concepts. The Fuzzy Front End phase ends when an organization approves and initiates a formal development of the concept.
Although Fuzzy Front End may not be an expensive part of product development, it can spend 50% of development time (see Chapter 3 of Smith and Reinertsen references below), and this is where the main commitment is usually made involving the time, money, and nature of the product, with thus arranging courses for the entire project and the final product. Consequently, this phase should be considered an important part of development rather than something that happened "before development," and the cycle time should be included in the total development cycle time.
Koen et al. (2001), distinguishes five different front-end elements (not necessarily in a particular order):
- Identify Opportunities
- Opportunity Analysis
- Idea Genesis
- Idea Options
- Idea and Technology Development
- The first element is the identification of opportunities. In this element, large or incremental business and technological opportunities are identified in a more or less structured way. By using the guidelines set forth here, resources will eventually be allocated to new projects.... which then lead to a structured NPPD (New Product & Development) strategy.
- The second element is an opportunity analysis. This is done to translate identified opportunities into implications for specific business and technological contexts. Here an extensive effort can be made to align ideas to target customer groups and conduct market studies and/or testing and technical research.
- The third element is the origin of the idea, which is described as an evolutionary and iterative process that develops from birth until the maturation of opportunities becomes a real idea. The idea-making process can be done internally or comes from external input, e.g. suppliers who offer new materials/technologies or from customers with unusual requests.
- The fourth element is the selection of ideas. The goal is to choose whether to pursue the idea by analyzing the potential business value.
- The fifth element is the development of ideas and technology. During this part of the front-end, business cases are developed based on estimates of the total available market, customer requirements, investment requirements, competition analysis and project uncertainty. Some organizations consider this to be the first stage of the NPPD process (ie, Stage 0).
A universally acceptable definition for the Fuzzy Front End or the dominant framework has not been developed so far. In the PDMA glossary, it is mentioned that Fuzzy Front End generally consists of three tasks: strategic planning, idea-making, and pre-technical evaluation. These activities are often chaotic, unpredictable, and unstructured. For comparison, the next new product development process is usually structured, predictable, and formal. The term Fuzzy Front End was first popularized by Smith and Reinertsen (1991). R.G. Cooper (1988) describes the early stages of the NPPD as a four-step process in which ideas are produced (I), subject to preliminary technical and market assessment (II) and combined with a coherent product concept (III) which is ultimately assessed for conformity with strategy and product portfolio (IV).
Other conceptualizations.
Other authors have divided predevelopment product development activities differently.
Zero Phase Stage-Gate Model New Product Development
The Stage-Gate model of the NPD predefaction activity is summarized in Phase zero and one, with respect to the preceding definition of predefined activity:
- Start
- Technical ratings
- Assessment of inventory sources: suppliers and partners or alliances
- Market research: market size and segmentation analysis, VoC (voice of the customer) research
- Testing product ideas
- Rating of customer value
- The product definition
- Business and financial analysis
This activity generates important information to make Go/No-Go to Development decisions. This decision represents Gates in the Stage-Gate model.
Initial Stage of Innovation Process
A conceptual model of the proposed Front-End Process that includes the early phases of the innovation process. The model is arranged in three phases and three gates:
- Stage 1: The environmental screening stage or the identification of opportunities in which external changes will be analyzed and translated into potential business opportunities.
- Phase 2: The initial definition of an idea or concept.
- Stage 3: The definition of detailed products, projects or services, and Business planning.
The gates are:
- Opportunity screening
- Evaluate ideas
- Go/No-Go for development
The last gateway leads to a dedicated new product development project. Many professionals and academics assume that the general features of Fuzzy Front End (uncertainty, ambiguity, and uncertainty) make it difficult to see FFE as a structured process, but rather as a set of interdependent activities (eg Kim and Wilemon, 2002). However, Husig et al., 2005 [10] argue that the front-end does not need to be fuzzy, but can be handled in a structured manner. Even Carbone points out that when using the front end success factors in an integrated process, product success increases. Peter Koen argues that in FFE for incremental, platform and radical projects, three separate strategies and processes are usually involved. The traditional Stage Gate (TM) process is designed for additional product development, ie for a single product. FFE to develop a new platform should begin with a strategic vision in which the company wants to develop the product and this will lead to the product family. Projects for breakthrough products begin with a similar strategic vision, but are related to technologies that require new inventions.
Display activity on Fuzzy-Front End
Predevelopment is an early stage in NPD and consists of various activities, such as:
- product formulation and communication
- identification and opportunity assessment
- idea generation
- product definition
- project planning
- executive review
Economic analysis, competitive product comparison and modeling and prototyping are also important activities during front-end activities.
FFE results are:
- mission statement
- customer requirements
- details of selected ideas
- product definitions and specifications
- economic analysis of the product
- development schedule
- project staff and budget
- business plan that aligns with company strategy
Incremental, platform, and breakthrough products include:
- Incremental products are considered as cost reductions, improvements to existing product lines, additions to existing platforms and repositioning existing products introduced in the market.
- Breakthrough products are new to the company or new to the world and offer 5-10-fold or greater performance improvements with 30-50% or greater cost reductions.
- Platform products define the basic architecture for next-generation products or processes and substantially larger in scope and resources than additional projects.
Organization
- Product Development and Management Association (PDMA)
- The International Product Marketing Association & amp; Management
- ISPIM (International Society for Professional Innovation Management)
- Community Product Development Along (SCPD)
Strategy
- Development of lean products
- Design for six sigma
- Flexible product development
- Implementation of the quality function
- Phase-gate model
- User centered design
Management
Companies must take a holistic approach to managing this process and should continue to innovate and develop new products if they are to grow and expand.
- REGISTERED SERVICES New Product Development. Focus on:
- Find new ways to solve customer problems.
- Create more customer satisfying experiences
- Companies often rely on technology, but success really comes from understanding customer needs and values.
- The most successful companies are companies that:
- Differentiated from others
- Troubleshoot major customer issues
- Offers an attractive value proposition
- Customers are directly involved
- TEAM BASED ON New Product Development
- Approach:
- To get new products where various departments of companies work closely together overlap steps in the product development process to:
- Save time
- Increase effectiveness
- Company departments work together in cross-functional teams that overlap with the steps in the product development process (to save time and improve effectiveness).
- The departments are: legal, marketing, finance, design and manufacturing, suppliers, and customer companies.
- If there is a problem, all companies can work.
- New SYSTEMATIC Product Development
- The development process should be holistic (alternative) and systematic not a good idea to die.
- This process is installed in the Innovation Management System that collects, reviews, evaluates ideas and manages new products
- companies are pointing to senior people to be Innovation Managers who encourage all companies
- employees, suppliers, distributors, and dealers to get involved in finding and developing new products.
- Then, there is the Functional Cross Innovation Management Committee that:
- Evaluate new product ideas
- Help bring good ideas
- In short, New-Product success requires:
- A new way to create a valuable customer experience, from generating and filtering new product ideas to create and launch a satisfying product.
- New Product Development IN TURBULENT TIME
- When we are in a difficult economic situation management typically reduces spending on: new product development. Usually this is done from a short viewpoint.
- Tough times may even require:
- Development of new, larger products offers solutions to change customer needs and tastes.
- Innovation helps
- Make your company more competitive
- Position it better for the future.
- Virtual product development
- Use collaboration technology to remove the need for teams placed together
- Reduce G & amp; Overhead costs of consulting firms
- The arrival of the 24-hour development cycle
Related fields
- End user
- Brand management
- Technique
- Industrial design
- Marketing
- Product management
See also
- Selected modeling
- Commercialization
- Conceptual economy
- Product life cycle
- Pro-innovation bias
- Management requirements
- Social design
- Gentle launch
- Market penetration
References
Source of the article : Wikipedia
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