New product development

In business and engineering, product development or new product development (PD or NPD) covers the complete process of bringing a new product to market, renewing an existing product and introducing a product in a new market. A central aspect of NPD is product design, along with various business considerations. New product development is described broadly as the transformation of a market opportunity into a product available for sale.^[1] The products developed by an organisation provide the means for it to generate income. For many technology-intensive firms their approach is based on exploiting technological innovation in a rapidly changing market. ^[2]

The product can be tangible (something physical which one can touch) or intangible (like a service or experience), though sometimes services and other processes are distinguished from "products."NPD requires an understanding of customer needs and wants, the competitive environment, and the nature of the market.^[3] Cost, time, and quality are the main variables that drive customer needs. Aiming at these three variables, innovative companies develop continuous practices and strategies to better satisfy customer requirements and to increase their own market share by a regular development of new products. There are many uncertainties and challenges which companies must face throughout the process. ^[2]

^ A dictionary of business and management (5th ed.). Oxford [England]: Oxford University Press. 2009. ISBN 9780199234899. OCLC 277068142.
^ ^a ^b Innovation Management and New Product Development (5th ed.). Harlow [England]: Pearson Education. 2012. ISBN 9780273736561.
^ Kahn, Kenneth B. (2012). The PDMA handbook of new product development (3 ed.). Hoboken, New Jersey: John Wiley & Sons Inc. ISBN 978-0-470-64820-9. A thorough understanding of customers' needs and wants, the competitive situation, and the nature of the market is an essential component of new product success.

[1] A dictionary of business and management (5th ed.). Oxford [England]: Oxford University Press. 2009. ISBN 9780199234899. OCLC 277068142.

[:9780273736561-2] Innovation Management and New Product Development (5th ed.). Harlow [England]: Pearson Education. 2012. ISBN 9780273736561.

[3] Kahn, Kenneth B. (2012). The PDMA handbook of new product development (3 ed.). Hoboken, New Jersey: John Wiley & Sons Inc. ISBN 978-0-470-64820-9. A thorough understanding of customers' needs and wants, the competitive situation, and the nature of the market is an essential component of new product success.

[1]

[2]

[3]