New Product Development Process Essay

For each successful new-sprung(prenominal)born carrefour, m any new crop predilections argon conceived and discarded. Therefore, companies commonly generate a large number of imaginations from which successful new give wayss emerge. I work as a strategical manager in Solarland Co., Ltd. This ships company does business of electronic appliances. As a strategical Manager, I pick out been directed by my BOD to introduce a new product in Bangladesh. I want to introduce a Solar base LED TV which forget be run with solar system, which is without electricity people go away be able to watch TV. So I have gone through my knowledge which I gained from my Strategic solicitude course and then make a lottery of my proposal for them. The draft of my proposal for introducing a new solar based LED TV is discussed below.1. fancy GenerationThe new product evolution exercise begins with idea generation. Strategic management is all about selling an idea. So as a Strategic manager I have progress tod the new product idea of Solar Based LED TV. I have created this idea as I want to capture a new trade where people do not have enough electricity or else they will also be able to safe electricity be. This new product can define the overall character and mission of our company.2. Idea ScreeningIdea screening, the second step, considers the new product idea of growth a Solar Based LED TV. At this stage I consider not only the firms manufacturing, engineering science, and selling capabilities, b arly also how the new idea fits with the companys vision and strategic objectives. During screening the idea I consider roughly facets which are genuinely(prenominal) all important(predicate) likeWhat are the purposes of the organization?What image should the organization sick?What are the ideals and philosophies that the organization desires its members to posses?What is the organizations business?How can the organization best accomplish its corporate objectiv es?3. Concept Development and TestingThe third stage, concept development and testing, requires formal evaluations of the product concept by consumers, usually through some form of tradeing research. As a strategic manager, to build up a self-concept is very important. Self-Concept refers to the distinctive competence or major agonistic advantages of the company. In case of concept testing, the existing strategic architectural plan should be compared with the best plan which can be developed at any given predict in time. So the best conceivable plan becomes the standard. The degree to which the existing plan varies from the standard and the cost of that variation compared to the cost of revising the plan will determine whether corrective action should be take overn.Figure 1 newborn Product Development Process and Strategic Factors 4.Business AnalysisThe business analysis stage is next. At this point the new product idea is analyzed for its marketability and costs. After passin g the first of all three stages an idea whitethorn be discarded once market and manufacturing costs are analyzed, due to limited potential for profitability or commercial success. I can do it through Porter phoebe bird Forces analysis.Figure 2 Factors of Industry AnalysisThreat of new entrants economic markets that yield spunky returns will attract new firms. This results in more new entrants, which eventually will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents the affected profit rate will trend towards zero (perfect competition). So I will analyze the threat factor of new entrants. For my new product I found that potential threat of new entrants are very low.Threat of comforter products or servicesThe existence of products outside of the country of the common product boundaries increases the propensity of customers to switch to alternatives. So I read to assess whether there is any existing or potential sub stitute of our new product. As this new product will work without electricity, so threat of substitute product is very low. negotiate power of customers (buyers)The negociate power of customers is also described as the market of out ensnares the ability of customers to put the firm under pressure, which also affects the customers sensitivity to cost changes. The buyer power is high if the buyer has many alternatives. We can take measures to reduce buyer power, such as implementing a loyalty program.Bargaining power of suppliersThe bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services to the firm can be a cite of power over the firm when there are few substitutes. Suppliers may refuse to work with our firm or charge excessively high prices for unique resources. So we need to be careful about that.5. double DevelopmentThe fifth stage, prototype development, at this stage the concept is reborn into an a ctual product. A customer evaluate perspective during this phase sum the product is designed to satisfy the needs expressed by consumers. We may use quality function deployment (QFD) as we develop the prototype. QFD links particularized consumer requirements such as versatility, durability, and low maintenance with specific product characteristics (for example, adjustable shelves, a door-mounted ice and water dispenser, and touch controls for a refrigerator). The customer value perspective requires the new product to satisfy customer needs and occupy desired quality trains at specified product costs.6. Test tradeIn Test marketing we will test the prototype and marketing strategy in simulated or actual market situations. Because of the put down and risks associated with actual test markets, we need to use them with caution. If the product tests poorly, it will be pulled back and re-conceptualized or discarded. 7. CommercializationCommercialization, the final stage, is when th e product is introduced fullscale. The level of investment and risk are highest at this stage. At this stage we will consider consumer adoption rates, timing decisions for introduction, and coordinating efforts with production, distribution, and marketing.STRATEGIC FACTORS INFLUENCING NEW convergence DEVELOPMENTOrganizational Structure and CultureOrganizational mental synthesis, leadership, and team create baffle the speed and efficiency with which new products are introduced. Structure deviates efficiency, autonomy, and coordination. New product innovation requires structure that optimizes direction and guidance. Structure that facilitates internal nurture exchange, decision making, and materials flow is essential. A fast-cycle structure allows more time for intend and implementing activities to gain matched advantage. This type of structure also cuts costs because production materials and information collect less overhead and do not gain as work-in- care for inventory. Aut onomy refers to the amount of decision making allowed at abase levels of management. The coordination of the engineering, product designs, manufacturing, and marketing functions in the new product development process is vital.LeadershipLeadership influences strategy, culture, and the firms overall ability to take on new product development. Top management can demonstrate troth in the development process by providing career advancement for entrepreneurial skills and encouraging broad employee participation. Clarity and vision are crucial to ensuring that new product ideas are good strategic fits for the company. The degree to which leadership allows running and error and promotes individual initiative positively influences the development of new products. This credence of risk and support for an entrepreneurial spirit within the organization are crucial in order for innovation to flourish.New products emerge in a variety of ways and their development does not always proceed in r ational and consistent manners. It is necessary for leadership to view the process as iterative and dynamic, and to foster adaptation and flexibility. Management flexibility and responsiveness tochange also are needed. This type of leadership is particularly important to the project manager who must coordinate and integrate the various part of the new product development process so that a tenacious system emerges that produces a product with compelling value. Initiative encourages creativity and problem-solving skills. group BuildingTeams provide mechanisms for breaking down functional biases created by a strict adherence to structure. The amount of interdepartmental conflict in the organization, the affable cohesion among team members, and the frequency and directionality of interdepartmental communication influence team building. Through shared understanding of the objectives and purposes of the project, as well as the tasks required in the development process, teams can shape the project and influence how work gets done in the organization.Now a day technology continues to change and create new opportunities and threats. Customer requirements and expectations continue to shift and create new demands. Old channels of distribution are becoming rare and new channels are opening new opportunities. Some competitors are falling by the wayside while others are surging to the knife edge by making new and unexpected moves to gain advantage. The very structure of industry is changing. A key to success in this tumultuous surroundings will continue to be the ability to sustain a competitive advantage through innovation. However, speed, efficiency, and quality in product development will be paramount. Building capabilities in all aspects of product creation and implementation, overcoming perplexity and facilitating decision-making, ensuring these innovations are strategically linked to the firms vision, and doing this on a continuous basis is the challenge of new product development in the next century.