3. New Product Development Flashcards
What are the 4 stages of developing a product?
- Ideas
- Feasibility
- Develop
- Launch
What do companies do when developing product ideas?
- Idea generation: looking at trends for the future
- Concept evaluation: see customer reactions to concepts
What do companies do when determining product feasibility?
- Feasibility testing: cost-effectiveness, etc.
- Project definition
What do companies do in product development?
- Create prototypes and screen
- Lock product and test
What do companies do to launch a product?
- Manufacture and launch
- Learning review
Why is a funnel system used when developing a new product?
To manage risk, and so that the product is reviewed and signed off at every stage confirming that it aligns with the company’s purpose.
How does a company decide how much they SHOULD invest in a product?
Any product below the central line (low value but high development cost) should be reviewed before being invested in.
How does a company decide whether they CAN invest in a product?
They review their resources and see whether the demand matches how much money they have available to invest in a product.
How does a company understand their market in order to develop new products?
- Know what unmet need they’re satisfying.
- Know their competitors.
- Know their brand values.
- Know the regulatory environment.
- Understand their costs.
What 3 things have to be balanced to develop a good product?
Cost, quality, and time.
What can be done to test the performance of a product?
Find out the needs of customers and whether the product matches them:
- Market research
- Focus groups
- Sensory panels
- Instrumental data collection
What can be done to minimise the risk of a product?
- Stability testing
- Safety testing
- Check for compliance with regulations
- File patents
- Test manufacturability
How can costs be optimised in product development?
- Choose the best value solution
- Remember that every ingredient counts
- Design the product for a supply chain
Why is flexibility important in product design?
It allows the company to anticipate future challenges and prepare for them.
How are the right ingredients chosen when developing a new product?
Market research allows a company to know what customers find important. These ingredients are then included as cost drivers.
Give 3 features of integrated product design
- One component gives many functional elements.
- Boundaries between blocks are difficult to identify.
- Changes to one component may require extensive overall re-design.
Give 3 features of modular product design
- One module gives one functional element.
- Well-defined interactions between modules.
- Changing one module does not affect others.
