There are many benefits to developing and introducing new products into your business, but you will need to understand how to do it successfully. Show
Benefits of new product development include:
You'll need to follow processes for analysing your ideas, developing prototypes and launching your new product to the market to ensure your product is commercialised correctly. On this pageProduct development strategyIt's essential to understanding the needs and wants of the market to avoid spending time and money on developing a new product that may not suit your customers. A product development strategy is a plan that includes:
Documenting your strategy will help identify any risks for the product and your business. Generating ideas and concepts for new productsDedicate time to generate and test ideas, because rushing product development could result in costly risks. New product ideas can be generated through:
Brainstorm using SCAMPERThe SCAMPER model is a good place to start your brainstorming process. SCAMPER stands for:
Evaluate your ideaCreate a list of your ideas and analyse each part of them by asking these questions. This will help conceptualise ideas or eliminate ideas that may not suit your business.
Idea to conceptAfter choosing the best idea to develop, you will enter the concept stage. This involves all aspects of the product creation and implementation. Along with the questions above, in the concept stage you will also need to:
Learn more about:
Business analysis of new productsComplete an analysis on any new product to determine the upfront and ongoing costs and potential profits. It can also help avoid or reduce unnecessary costs. Use the checklist below to analyse your product. Break-even point: What is the amount of product you need to sell to cover your business costs (rent, utilities, wages)? Read about break-even and profit. Return on investment: How long will it take until you see a return on your investment? Learn about managing financial risk. Logistics: Could there be any importing or exporting issues? Find out about the basics of importing and exporting. Assessing the feasibility of a product and protecting your intellectual propertyCompleting the business analysis will give you a clearer insight into the feasibility of your new product. When starting a business, researching business ideas and investigating feasibility are part of the process, and the same analysis needs to be done for any new products you are introducing. You will also need to consider intellectual property—make sure you register patents and protect your intellectual property before creating your product. A non-disclosure agreement will help protect sensitive information about your new product—use the IP contract generator at IP Australia to develop this agreement New product prototypes and market testingPrototyping is creating the product 'master' or draft of the product you want to sell—this is where your idea comes to life. Take your time to ensure you get your product right. You may go through a few rounds of prototype testing until you are satisfied that it suits your needs and expectations. Follow these stages to test the market and your prototype.
Launching and commercialising new productsA product launch can be vital to its success, so you should have strategies in place prior to launch. Use this checklist to ensure you have everything ready for launch. Contract arrangements made with distributors Production and logistics in place Quality assurance measures in place Stock levels and supply capacity established Selling price and net profit understood and finalised Marketing and public relations strategy created Marketing plan created Advertising plan created Marketing and social media campaigns prepared Sales targets set Staff sales training completed Staff product training completed
What are the most sources of new product ideas?Here we present the most common sources for new product and service ideas:. 1) Information from Customers.. 2) Information from Distributor.. 3) Competitor Analysis.. 4) Exhibition.. 5) Publications, Journal.. 6) Universities, private Institutions.. 7) Patents.. Which of the following are sources for new product or service design ideas?E) Customers, competitors, and suppliers are major sources of new product ideas. E) Customers, competitors, and suppliers are major sources of new product ideas.
What are the sources of new product ideas product for business?Firms seek product ideas from people inside the organization, including those in marketing, sales, research, and manufacturing, as well as from customers and others outside the organization.
How many sources of new product ideas are there in idea generation?Employees and the research & development department of the company are great internal sources. Whereas, external sources are also very helpful. These are customers, suppliers, competitors, distribution channels, government, educational institutions, and focus groups.
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