Welcome to Lesson 1 of “Introduction to New Product Development”! Before you start, please scan here, your virtual assistant has something to say!
The New Product Development (NPD) process can be defined as the complete process of bringing a new product to market.
Product Management is a multi-disciplinary role that guides the strategic and tactical efforts of a product to ensure that a marketable product is delivered to the end user.
For simplicity, through the course we will call this discipline NPD.
Yet, from another perspective, NPD can also be defined as a process where success is based on a set of decisions that are well founded on knowledge, information and data.
Despite the word “new” which can be misleading, it is important to highlight that the NPD process can be applied to the full range of product development projects included in most company portfolios:
A line extension is used to increase the offer to the market, think for example at the BMW M3 or M4 series: differences are small, sometimes just details, however they are different products.
Cost reduction projects introduce also some novelty: indeed, to make the product cheaper, smarter or to implement a more efficient processes (e.g. design, manufacturing, marketing), innovation must be introduced. Cost reduction can be seen also as product or service improvement: products become more “palatable” to the market, introducing new features. The easiest example is the smartphone’s business.