How To Start A New Product Idea – Developing a new product is not an easy task. Sometimes this can be challenging as it depends on the product you want to make.
The levels may vary for each industry, but we can mainly divide them into five levels. These stages – ideation, research, specification, prototype, sourcing and costing. Read the product development information below to learn more about the stages.
How To Start A New Product Idea
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Certain manufacturing processes about the continuous production of existing supplies; NPI “inserts” new products into the manufacturing process.
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A new product introduction process is a repeatable set of steps or steps that a company uses to develop a new product to meet market demand.
In today’s global environment, this manufacturing process is often performed by a manufacturing partner at a low-cost location. This is called sourcing and is usually done by a contract manufacturing company that designs for you and builds the product based on your design (development costs are usually included in the price of the product if the contract manufacturer designs and approves it).
While almost every company develops new products or services, the process of introducing a new product varies greatly from company to company. Variables include industry, product type, level of innovation, materials, supply chain considerations, key factors, market constraints, and labor costs. So the product development life cycle is also different.
New Product Introduction (NPI) is essential for business as it helps streamline the entire process of launching a product, from engineering and design to the rollout of the product line. By establishing efficient work processes, NPI enables companies to reduce costs, optimize resources and bring products to market in a timely manner. Effective NPI processes involve close collaboration between internal team members, including engineering, design, marketing and control departments, to enable comprehensive risk assessment and problem detection before they become critical. Involving contract manufacturers early in the process can contribute to a smooth transition from development to production, reducing costs and risks.
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Another important aspect of NPI is the ability to identify and reach the right target audience, ensuring that the product meets market needs and expectations. By focusing on product quality, NPI helps improve customer satisfaction and brand reputation, which ultimately increases sales and revenue. In addition, NPI plays a key role in material forecasting, supply chain management and inventory control are optimized for the production line. This not only reduces waste, but also helps companies be more efficient and responsive to changing market demands. In conclusion, in today’s fast-paced market landscape, a well-implemented NPI process is essential to maximize product success and gain a competitive edge.
Although cross-cutting processes based on these elements vary, an accepted approach to NPI processes is to describe the process in a series of steps. At the end of each step, the senior management team (and key stakeholders) make an up or down decision in a formal review (often called a “gate”). Lean methods are becoming more common as hard measures are replaced by lean cross-functional workshops. Product introduction process depends on the type of product and associated risks. It is usually divided into 5-7 stages.
This initial stage or new product introduction (NPI), often called “ideation,” is where a new product idea is created by the product team. Businesses often form a small team to brainstorm ideas and explore the initial definition of a product concept to develop the product. The team conducts business analysis and market research and identifies technical and market risks. The idea stage, thinking about new products, is often the most important step. This is where most product ideas come from.
Getting the product concept wrong at this early stage wastes time and increases opportunity cost. Getting the contract manufacturer on board should start at this stage – as costs and constraints are set at an early stage. Making the wrong initial decision can lead to headaches later, such as cost overruns, schedule delays, or product quality issues.
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Sometimes called “scoping” or concept development, this phase involves refining the definition of design concepts and gathering product requirements. This beginner’s step is often called discovery. This is where you delve deeper into customer needs. The team first reviews the technical, market and business aspects of the new product concept in detail and determines key functions. This step is make-or-break to ensure a successful product, and although it can be useful for previous performance reviews.
Developers and managers, and especially project managers, research and define key points for a new product and get customer feedback. This second step, if done incorrectly, can increase time to market or cause product developers to misunderstand market needs. Since this step usually comes before expanding the team, this is where you define your initial marketing strategy. Although this is preliminary, the teams often estimate metrics such as ARR (Annual Recurring Revenue) or acquisition cost. Also at this stage product development costs are estimated and design specifications are defined.
Even if it’s early, now is the time to set up contract manufacturers or multiple manufacturing companies (for competitive quotes). Teamwork between purchasing, manufacturing, and research and development is critical to reducing production costs by purchasing for the best manufacturing company.
This NPI process supports the company’s investment in product development by asking the team to create a detailed business plan. This plan includes intensive market research in parallel to ensure the product’s viability. The team thoroughly examines the competitive landscape and where the proposed product fits within it. They also create a financial model for the new offering that makes assumptions about market share. At this stage the price is fixed. At this point in the NPI process, the company begins to invest heavily in the project (prototypes are expensive).
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For concrete new products such as hardware or integrated systems, the team considers the proposed new product’s manufacturing capability or design (DFM). At the end of this stage, the top management should have a clear understanding of what they are investing in and how it works in the market. This product development process is important because it reduces market risk for a new product and can be critical to optimizing performance and reducing costs to maximize profitability.
In some cases, companies manage the pilot production through production and quality control departments. The transition process is the stage where the team evaluates its supply chain management in order to leverage the existing supply base, as the qualification of a new supplier can take a long time.
At this stage, the focus is on the product design process. It starts with checking the product prototype. At this point, the prototype is feature-packed and similar to the real product. In most cases, the team alpha-tests prototypes, working with customers in an iterative way: getting their feedback and incorporating it into the prototype. Design changes after this stage can be very expensive, so this is an important step in the NPI process.
At this stage of the NPI process, a bill of materials (BOM) is created. Due to the amount of work required, the design team can be very large. At this stage, the organization increases the amount of production services to ensure that the design is of high quality (so the output will be high). It will be difficult to buy at this time.
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In parallel, marketing, sales and manufacturing start and build product platforms to support the emerging product. You can start implementing basic marketing challenges. This fourth stage of new product development is sometimes called development and sometimes includes the following
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