New Product Development Process Essay

For every successful new merchandise. many new merchandise thoughts are conceived and discarded. Therefore. companies normally generate a big figure of thoughts from which successful new merchandises emerge. I work as a strategic director in Solarland Co. . Ltd. This company does concern of electronic contraptions. As a Strategic Manager. I have been directed by my BOD to present a new merchandise in Bangladesh. I want to present a Solar Based LED Television which will be run with solar system. which is without electricity people will be able to watch Television. So I have gone through my cognition which I gained from my Strategic Management class and so do a bill of exchange of my proposal for them. The bill of exchange of my proposal for presenting a new solar based LED Television is discussed below.

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1. Idea Coevals

The new merchandise development procedure begins with thought coevals. Strategic direction is all about selling an thought. So as a Strategic director I have created the new merchandise thought of Solar Based LED Television. I have created this thought as I want to capture a new market where people do non hold adequate electricity or else they will besides be able to safe electricity cost. This new merchandise can specify the overall character and mission of our company.

2. Idea Screening

Idea showing. the 2nd measure. considers the new merchandise thought of developing a Solar Based LED Television. At this phase I consider non merely the firm’s fabrication. engineering. and selling capablenesss. but besides how the new thought tantrums with the company’s vision and strategic aims. During testing the thought I consider some aspects which are really of import like:

What are the intents of the organisation?
What image should the organisation undertaking?
What are the ideals and doctrines that the organisation desires its members to posses?
What is the organisations concern?
How can the organisation best fulfill its corporate aims?

3. Concept Development and Testing

The 3rd phase. construct development and testing. requires formal ratings of the merchandise construct by consumers. normally through some signifier of marketing research. As a strategic director. to construct up a self-concept is really of import. Self-Concept refers to the typical competency or major competitory advantages of the company. In instance of construct proving. the bing strategic program should be compared with the best program which can be developed at any given point in clip. So the best imaginable program becomes the criterion. The grade to which the bing program varies from the criterion and the cost of that fluctuation compared to the cost of revising the program will find whether disciplinary action should be taken.

Figure 1: New Product Development Process and Strategic Factors 4.

Business Analysis

The concern analysis phase is following. At this point the new merchandise thought is analyzed for its marketability and costs. After go throughing the first three phases an thought may be discarded one time selling and fabrication costs are analyzed. due to limited potency for profitableness or commercial success. I can make it through Porter Five Forces analysis.

Figure 2: Factors of Industry Analysis

Menace of new entrants

Profitable markets that yield high returns will pull new houses. This consequences in many new entrants. which finally will diminish profitableness for all houses in the industry. Unless the entry of new houses can be blocked by officeholders the unnatural net income rate will tendency towards zero ( perfect competition ) . So I will analyse the menace factor of new entrants. For my new merchandise I found that possible menace of new entrants are really low.

Menace of replacement merchandises or services

The being of merchandises outside of the kingdom of the common merchandise boundaries increases the leaning of clients to exchange to options. So I need to measure whether there is any bing or possible replacement of our new merchandise. As this new merchandise will work without electricity. so menace of utility merchandise is really low.

Dickering power of clients ( purchasers )

The bargaining power of clients is besides described as the market of end products: the ability of clients to set the house under force per unit area. which besides affects the customer’s sensitiveness to monetary value alterations. The purchaser power is high if the purchaser has many options. We can take steps to cut down purchaser power. such as implementing a trueness plan.

Dickering power of providers

The bargaining power of providers is besides described as the market of inputs. Suppliers of natural stuffs. constituents. labour. and services to the house can be a beginning of power over the house when there are few replacements. Suppliers may decline to work with our house or charge overly high monetary values for alone resources. So we need to be careful about that.

5. Prototype Development

The 5th phase. paradigm development. at this phase the construct is converted into an existent merchandise. A client value position during this stage means the merchandise is designed to fulfill the demands expressed by consumers. We may utilize quality map deployment ( QFD ) as we develop the paradigm. QFD links specific consumer demands such as versatility. lastingness. and low care with specific merchandise features ( for illustration. adjustable shelves. a door-mounted ice and H2O dispenser. and touch controls for a icebox ) . The client value position requires the new merchandise to fulfill client demands and meet coveted quality degrees at specified production costs.

6. Trial Selling

In Test selling we will prove the paradigm and selling scheme in fake or existent market state of affairss. Because of the disbursal and hazards associated with existent trial markets. we need to utilize them with cautiousness. If the merchandise tests ill. it will be pulled back and re-conceptualized or discarded. 7. Commercialization

Commercialization. the concluding phase. is when the merchandise is introduced full graduated table. The degree of investing and hazard are highest at this phase. At this phase we will see consumer acceptance rates. timing determinations for debut. and organizing attempts with production. distribution. and selling.

STRATEGIC FACTORS INFLUENCING NEW
PRODUCT DEVELOPMENT
Organizational Structure and Culture

Organizational construction. leading. and squad edifice influence the velocity and efficiency with which new merchandises are introduced. Structure influences efficiency. liberty. and coordination. New merchandise invention requires construction that optimizes way and counsel. Structure that facilitates internal information exchange. determination devising. and stuffs flow is indispensable. A “fast-cycle” construction allows more clip for planning and implementing activities to derive competitory advantage. This type of construction besides cuts costs because production stuffs and information collect less overhead and do non roll up as work-in-process stock list. Autonomy refers to the sum of determination devising allowed at lower degrees of direction. The coordination of the technology. merchandise designs. fabrication. and marketing maps in the new merchandise development procedure is critical.

Leadership

Leadership influences scheme. civilization. and the firm’s overall ability to set about new merchandise development. Top direction can show engagement in the development procedure by supplying calling promotion for entrepreneurial accomplishments and promoting wide employee engagement. Clarity and vision are important to guaranting that new merchandise thoughts are good strategic tantrums for the company. The grade to which leading allows test and mistake and promotes single enterprise positively influences the development of new merchandises. This credence of hazard and support for an entrepreneurial spirit within the organisation are important in order for invention to boom.

New merchandises emerge in a assortment of ways and their development does non ever continue in rational and consistent manners. It is necessary for leading to see the procedure as iterative and dynamic. and to further version and flexibleness. Management flexibleness and reactivity to alter besides are needed. This type of leading is peculiarly of import to the undertaking director who must organize and incorporate the assorted parts of the new merchandise development procedure so that a coherent system emerges that produces a merchandise with compelling value. Initiative encourages creativeness and problem-solving accomplishments.

Team Building

Teams provide mechanisms for interrupting down functional prejudices created by a rigorous attachment to construction. The sum of interdepartmental struggle in the organisation. the societal coherence among team members. and the frequence and directivity of interdepartmental communicating influence squad edifice. Through shared apprehension of the aims and intents of the undertaking. every bit good as the undertakings required in the development procedure. squads can determine the undertaking and act upon how work gets done in the organisation.

Now a twenty-four hours engineering continues to alter and make new chances and menaces. Customer demands and outlooks continue to switch and make new demands. Old channels of distribution are going obsolete and new channels are opening new chances. Some rivals are falling by the roadside while others are billowing to the head by doing new and unexpected moves to derive advantage. The really construction of industry is altering. A key to success in this disruptive environment will go on to be the ability to prolong a competitory advantage through invention. However. velocity. efficiency. and quality in merchandise development will be paramount. Constructing capablenesss in all facets of merchandise creative activity and execution. get the better ofing uncertainness and easing decision-making. guaranting these inventions are strategically linked to the firm’s vision. and making this on a uninterrupted footing is the challenge of new merchandise development in the following century.

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