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The New Product Development process

   Idea Generation is often called the "fuzzy front end" of the NPD process

        New product ideas come from anywhere and are the seed of the next great business. Ideas start from inspiration and vision, now detailed below is a basic structure taking the idea and forming a business. Confirming the legitimacy of new products starts with basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats):
Market and consumer trends
company's R&D department
competitors
focus groups
employees
salespeople
corporate spies
trade shows

        After Idea Generation or Brainstorming - idea generation leads to screening then testing the idea. An OPPORTUNITY ANALYSIS is performed to support your ideas in the Idea Screening Phase
   Idea Screening
        The object is to eliminate unsound concepts prior to devoting resources to them.
        The screeners should ask several questions:
            Will the customer in the target market benefit from the product?
            What is the size and growth forecasts of the market segment/target market?
            What competitive pressure is probable for the product idea?
            What are the industry sales and market trends the product idea founded?
            How difficult is it to manufacture the product?
            Will the product be profitable when manufactured and delivered to the customer at the target price?
Concept Development and Testing
        Develop the marketing and engineering details
            Investigate intellectual property issues and search patent data bases
            Who is the target market and who is the decision maker in the purchasing process?
            What product features must the product incorporate?
            What benefits will the product provide?
            How will consumers react to the product?
            How will the product be produced most cost effectively?
            Prove feasibility through virtual computer aided rendering, and rapid prototyping
            What will it cost to produce it?
            Testing the Concept by asking a sample of prospective customers what they think of the idea.
    Business Analysis
        Estimate likely selling price based upon competition and customer feedback
        Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation
        Estimate profitability and break-even point
    Beta Testing and Market Testing
        Produce a physical prototype or mock-up
        Test the product (and its packaging) in typical usage situations
        Conduct focus group customer interviews or introduce at trade show
        Make adjustments where necessary
        Produce an initial run of the product and sell it in a test market area to determine customer acceptance
    Technical
        New program launch
        Quality management system
        Resource estimation
        Requirement publication
        Publish technical communications such as data sheets
        Engineering operations planning
         Supplier collaboration
        Logistics strategy
        Resource plan publication
        what-if planning
    Commercialization
        Launch the product
        Produce and place advertisements and other promotions
        Fill the distribution pipeline with product
        Critical path analysis is most useful at this stage
    Product Pricing
        Impact of new product on the entire product portfolio
        Competition and alternative competitive technologies
        Differing value segments (price, value, and need)
        Product Costs (fixed & variable)
        Forecast of unit volumes, revenue, and profit