What are the 7 Stages in the New Product Development Process? | MBA

When You Building New Products and Services are Synonymous with uncertainty. But, when you follow the suit of the systematic New Product Development process, you will soon gain clarity and confidence in what you are building.

7 Stages Are Below :

Stage 1: Idea Generation
Stage 2: Idea Screening
Stage 3: Concept Development & testing
Stage 4: Market Strategy/ Business Analysis
Stage 5: Product Development
Stage 6: Market Testing
Stage 7:Market Entry/ Commercialization 

Stage 1: Idea Generation

Basically Idea Generation is First Stage of Product Development Process which means Your goal should be to generate many worthy ideas that can form the foundation for the New Product Development strategy. The major part of this stage should be to give significance to brainstorming sessions where solving customer problems is given precedence.

Here how to do that Idea Generation

1. Emphasize on Customers Problem

The problem that is well thought off is a problem half-solved. Here’s how to identify the issues that your target audience is facing

(a) Personal Problem

(b) Qualify each listed Problem

What is 4U:

1. Unworkable

2.Unavoidable

3.Urgent

4.Undeserved

(c) coming up with possible solutions

Stage 2: Idea Screening

This New Product Development stage revolves around choosing that one idea that has the highest potential of success. Put all the ideas available on the table for internal review, i.e., turn to people with industry knowledge and experience in the field.

For a new product development idea, having a POC should hold precedence as it helps check the feasibility of the idea. There is no point in zeroing in on an idea that is not technically feasible to build.

Consult the Agile Development team — their expertise can help in understanding the technical side of things, which, in turn, can help you shortlist ideas worth building a PoC for.

SWOT ( Strengths, Weaknesses, Opportunities, and Threats) analysis can be another good practice to consider when shortlisting New Product Development ideas.

The Agile Development team, the product owner, the scrum master, and the product manager conduct a detailed analysis of the idea to shortlist an idea where — strengths and opportunities overpower threats and weaknesses.

Stage 3: Concept Development & testing

Before you start with the New Product Development process, building a detailed version of the idea and the user stories should be given priority.
This value proposition evaluation is the first step towards concept development and testing

At the very least, it ensures that you discover problems in your approach sooner and can course-correct earlier. That saves you from piling up technical.

Stage 4: Market Strategy/ Business Analysis

Marketing strategy is all about drafting a way to reach out to the targeted audience.
Perhaps the best and most straightforward method is to follow McCarthy’s 4Ps of marketing for your New Product Development project.

Product

Price 

Place

Promotion

Stage 5: Product Development

When the New Product Development idea is in place, the market strategy is documented, and the business analysis is completed — you can move on with the product development cycle.
The New Product Development starts with developing the prototype followed by MVP.

1. Prototype

2.Minimum Valuable Product

Stage 6: Market Testing

This step in New Product Development aims to reduce the uncertainty revolving around the success of the software product, i.e., checking the viability of the new product or its marketing campaign.

There are two market testing strategies to follow:

1. Apha Testing

The test engineers deployed in the organization use and judge the product based on performance. The test engineers check the product’s performance and map the marketing mix results with the product created.

2. Beta Testing

The target groups or customers use the product and give their unbiased feedback to the organization.

It is about listening to the voice-of-customers, VOC. If any issues are reported, they are moved back to the development team for fixtures.

Stage 7: Market Entry/ Commercialization 

Commercialization is an umbrella term that entails varied strategies to ensure the success of your new product. Here is what commercialization includes:

1. Marketing the concept over the  Product

2. Having a Brand Voice