New product development

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New product development in business and engineering also simply product development and therefore abbreviated as 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. In the ifnormation technology industry, new product development is called rollout. 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]