Designing New Product Development ( Npd )

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Companies that consistently bring new goods to market follow a process called new product development (NPD). The steps may vary depending on the company and good, but many successful new product launches follow roughly the operating procedure. The process begins with formulating an idea for a new good or service. The idea is then handed over to a project manager (PM) so that they can further refine the concept. Once the PM has chosen a concept, the company’s legal department will test, prepare and, if necessary, register the concept with the proper government agencies. Finally, the company will test the new good, mass-produce the product and analyze whether the new product launch is successful. Planning structures such as these help firms…show more content…
Using this rubric, they can eliminate ideas that do not meet company goals and save a company’s limited resources. Hypothesizing Product Success An analysis, such as a SWOT analysis, is important for identifying nonstarter concepts. NDP project managers must question whether there is a demand for exactly what they are trying to build. If there is a demand, they must then determine whether the demand is strong enough to produce enough revenue. Potential market share is also an important variable to consider. Additionally, it is important to analyze whether the new product fits in with current industry trend patterns. Once a project manager weighs these considerations, they must then decide whether their firm can produce the new product cost-effectively. Finally, they must calculate if consumer demand is high enough to create a long-term profit margin. Moving Closer to Finalization At this point, a firm project manager has a solid grasp on what new good or service they want to produce. The PM will, through a company’s legal department, investigate and register any trademarks or patents before proceeding further. Once the legal department completes this work, the project can move forward and the PM will work up a profile on the new product’s target demographic. They will also identify the new product’s features and benefits. Through tools such as focus groups and polls, they will then begin to gauge how their consumers or clients will respond to the new
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