Product development
Product development is the complete process of creating a new product or improving an existing one, from initial concept through design, engineering, testing, and market launch, aimed at delivering customer value and business growth (Cooper R.G. 2017, p.12)[1]. Each year, more than 30,000 new consumer products hit the market—and 95% of them fail. The difference between success and failure often lies in the development process. Random idea generation, weak market research, rushed timelines, and poor cross-functional coordination kill products before they reach their potential.
Two dominant frameworks guide modern product development. The Stage-Gate model, developed by Robert Cooper in the 1980s, divides development into distinct stages separated by management decision gates. Agile methods, borrowed from software development, emphasize rapid iteration, customer feedback, and flexibility. Many organizations now blend both approaches—using Stage-Gate for overall governance while applying Agile methods within stages.
Development stages
The NPD process typically includes:
Idea generation
Sources. Ideas come from customers, employees, competitors, suppliers, and R&D[2].
Methods. Brainstorming, customer research, competitive analysis, technology scouting.
Volume. Successful companies generate many ideas knowing most won't proceed.
Screening and concept development
Evaluation. Filter ideas against strategic fit, market potential, and technical feasibility.
Concept testing. Present concepts to potential customers for feedback[3].
Business case. Preliminary analysis of costs, revenues, and investment required.
Development
Design. Translate concepts into detailed product specifications.
Engineering. Develop prototypes and solve technical challenges[4].
Iteration. Refine based on testing and feedback.
Testing
Internal testing. Verify product meets specifications and quality standards.
Beta testing. Limited release to real customers to uncover issues before full launch.
Market testing. Test marketing approaches in limited geographies.
Launch
Go-to-market. Execute marketing, sales, and distribution strategies[5].
Ramp-up. Scale production to meet demand.
Post-launch review. Assess performance and capture lessons learned.
Types of new products
Products differ in novelty:
New-to-the-world. Entirely new products creating new markets—first smartphones, electric vehicles.
New product lines. Products new to the company but not to the market[6].
Line extensions. Additions to existing product lines—new flavors, sizes, features.
Improvements. Enhanced versions of existing products.
Success factors
Research identifies what works:
Customer focus. Understanding customer needs and involving them throughout development.
Cross-functional teams. Bringing together marketing, engineering, manufacturing, and finance[7].
Senior management support. Executive commitment to innovation and risk-taking.
Clear requirements. Well-defined specifications that don't shift constantly.
Disciplined process. Structured approach with clear milestones and decisions.
Contemporary approaches
Practice continues evolving:
Design thinking. Human-centered approach emphasizing empathy and experimentation.
Agile development. Iterative cycles with continuous customer feedback[8].
Lean startup. Build-measure-learn cycles with minimum viable products.
Open innovation. Collaborating with external partners to accelerate development.
| Product development — recommended articles |
| Innovation management — Product life cycle — Marketing management — Project management |
References
- Cooper R.G. (2017), Winning at New Products, 5th Edition, Basic Books.
- Ulrich K.T., Eppinger S.D. (2016), Product Design and Development, 6th Edition, McGraw-Hill.
- Wheelwright S.C., Clark K.B. (1992), Revolutionizing Product Development, Free Press.
- Atlassian (2024), New Product Development Process.
Footnotes
- ↑ Cooper R.G. (2017), Winning at New Products, p.12
- ↑ Ulrich K.T., Eppinger S.D. (2016), Product Design, pp.45-62
- ↑ Wheelwright S.C., Clark K.B. (1992), Revolutionizing Product Development, pp.67-82
- ↑ Atlassian (2024), New Product Development
- ↑ Cooper R.G. (2017), Winning at New Products, pp.134-148
- ↑ Ulrich K.T., Eppinger S.D. (2016), Product Design, pp.178-192
- ↑ Wheelwright S.C., Clark K.B. (1992), Revolutionizing Product Development, pp.234-248
- ↑ Atlassian (2024), New Product Development
Author: Sławomir Wawak