New Product Development Model Compare and Contrast

Companies find opportunities in product innovation by providing new products and services to customers. This keeps current customers interested in doing business with the company and has the potential to attract new customers. Sometimes this is done by creating new products, greatly changing an existing product or by just changing the way the current product is presented. Another form of product innovation is branding. By creating a more positive brand image a company can keep the interest of consumers.

Innovations form the main sources of competitive advantages and are always of significance for the growth of a company. Companies or organizations put their greater efforts in improving their performance by finding new ideas and knowledge on the best way of beating their competitors and therefore give satisfaction to their customers. There are various factors involved in the innovation design system which can be either internal or external.

It has ability of achieving targeted results. It provides improvement by modifying the process. Employers get motivated to understand new processes.

It will enable you to concentrate resources on improving profits, reducing costs , exploring opportunities, knowing of the limitations and increasing returns on investment.

Speedup time to market. Because there are more people involved the process of innovation is faster

From the e-Activity, imagine that your company is a smartphone manufacturer that is launching a new product. Recommend the approach that you would take in order to

But as derived from the companies design for the new product, it is expected that the project will be successful and introduced in the time frame pre determined. In looking that there is already a competitive product out to that of the project, the company is expecting that with the new features, and adds on possibilities it will as well bring a positive outcome for the project (PMI, 2004).

Sol. Q2. A) New Product Development (NPD) is defined as the process of bringing a new product to the market on the Business and Engineering fields. It can be also defined as the process of developing a product for sale from a market opportunity. There are various methodologies to develop a product are:

2. Risk management should be done at all stages. The initial assessment should be made in the proposal stage then the assessment should be revised and reevaluated throughout the projects life. New risks will become apparent at different stages and other ones will change with different circumstances.

Development: The Company has the new idea of a prototype. That use 3D printer to check the product that can be fit to everyone or not with safety test.

Because the external environment of any company is ever-changing, opportunities must be sought and taken to succeed and continue to compete in the marketplace. Such opportunities can be derived from a variety of reasons (such as new regulatory restrictions or internal mandates), so taking the time to properly identify prospective opportunities for product development is absolutely crucial for an advantage over existing and potential competitors (Crawford, Di Benedetto, 2015). While many companies' products are in a position where they could likely continue to thrive as they are, seeking and taking new opportunities to sustain product growth could pay off in the long run.

In deciding which product to approve, the production head could use historical data pertaining to customer buying habits to see if their buying habits change when a new product line is launched. Therefore, choosing MMDCE from a strategic stand point seems to be a better option. Issue 3: NPV Analysis Since DYOD is a brand new product line for the company, the inherent risks involved in its successful launch are higher than MMDCE, since it is merely an extension of an existing line of products. Therefore, in order to do an NPV analysis, the division head could use a discount rate of 8.4% for the MMDCE and 9% for the DYOD product lines respectively. An NPV analysis suggests that investment in the MMDCE product line is a more profitable proposition compared to the DYOD product line since the NPV of the DYOD product line is negative (-2,434,000). Since we reject projects with negative NPVs, MMDCE seems to be an obvious choice. The following table below shows the analysis for NPV: For MMDCE

As we mentioned before, the product line structure has a many positive aspects beneficial for the company. First of all specific, measurable goals, as mentioned before allow to quickly undertake proper actions and asses the performance. What’s more, it encourages managers to look more often into a finance practices and enhance cooperation between line managers and financial managers. Secondly, increased ability of the product and process development to work together support both manufacturing and development. Of course everything has its disadvantages, product line concept divide product lines into more independent and separate entities which may lead to the competition between each product line. It can increase the amount of disputes between business units and headquarters, especially about the transfer pricing.

Product development is the process of designing, creating and marketing new products or services to benefit customers (TechTarget, 2015). Sometimes product development are known as new product development, the main focus is on the developing systematic methods for guiding all the processes involved in getting a new product to market. These processes start from brainstorming idea on product; research on product; develop the product; testing; analysis; and lastly is introduce the product on market.

Starting a new product is never easy for a company. The difficulties they face are diverse in nature, and often they lack initiatives so that customers are not interested in the product.