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Looking at the definition ofproduct development, it is basically the creation of products with new or
different characteristics that offer new or additional benefits to the
customer. It involves product modification, or formulation of totally new
products that satisfies the defined consumer market. Most of the companies
conduct product development with a hope that it could create an excitement in
the market and expect more income towards it. Yet, it is not always the case. Proper
plan and test market are some of the essential tasks that needs to be done in
the process of product development, and the most important part, this process
should not be done “blindly”, but having a strong base to support it.
In product development process,
there are two types of strategy that can be done. It includes reactive and
proactive strategies. In reactive strategy, it explains more on the process
where the company defense, imitates, having a trust that “second is better” and
lastly responsive to the market needs. On the other hand, proactive explains more
on the process where companies conduct research and development, marketing,
having the feeling of entrepreneurship up to acquisition with other companies
having the same field. Most people may suggest more in taking up proactive
strategy as to conduct product development, but this decision could not be
taken by personal views. Several factors such as the chances of growth,
innovation protection, market scale, level of competition and position of
distribution system should be taken into consideration, as these can bring
about huge impacts in decision making process.
Most companies believe that once plans are being set, everything will go on well. Yet, the decision makes and
executers of product development should have the understanding that not all
plans can work as expected. Plans that are set before can show up different
results during the execution process, as of the circumstances that may occur on
the field. Being too much focused to the plan may not be a good idea, as if
something wrong occurs, findings of solutions would not be easy. Being flexible
with the circumstances faced could be the best choice as to bring a calm
decision making process in time of need.
In theory, there are eight steps
for product development. It includes the process of idea generation, idea
screening, concept development and testing, marketing strategy development,
business analysis product development, test marketing and commercialization. Though
these eight steps have proved great results in product development for some
companies, the planners should still make sure on proper strategies also
executions to make this theory successful in practical. SMART strategy can also
be used as the support to the process.
Ansoff’s Growth-opportunity
matrix is one of the strategies that are introduced in the process of product
development also. This matrix aids the company to know more on the opportunity and
risks that the company may be facing, especially in knowing if growth is
possible. Other than this matrix, the product life cycle curve can also help in
knowing the position of the product in the market and suggest on if the product
needs to be renewed or no. Just like Samsung Galaxy Gear Smartwatch, it proves
on how Samsung has taken the opportunity to grab the market with their
innovations and compete best with their head-to-head competitors.
“People buy products if they’re
better.” A quote by James Dyson, a British inventor and founder of Dyson
companies suggest that how you create the product is most important. So, the
decision is yours!
For more details on Product Development, please contact:
KIRTI PARKASH
+62 21 8378 3288
kirti.parkash@frontlinerinc.com
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