With the launch of a product, it’s important to take care of every step that comes with developing and launching a product A McKinsey study found that 50% of product launches miss their goals after launch; thus, there should be steps that every company must take to standardize their product development phases and achieve the required results. The market demand and competition in the industry play a vital role in deciding the best way to launch a product and get it identified with utmost respect among its users.
Product development is a complex process to perform, but if done right, it will lead to successful launches. Typically, there are five main phases in the product development process, which cover everything from the first product concept to the final market launch.
Read this entire article to learn in detail about the different phases of product development, their categorization, and how you should follow them to launch your product with the intended results.
What is Product Development?
The process of creating a new product, from ideation through commercialization, is known as product development. There are several well-known product development approaches that have benefited startups as well as large enterprises for many years:-
Stage-Gate theory The Stage-Gate model is an eight-step road map for effectively assessing, creating, and marketing a product.
The IDEO method: With this user-centric approach, product development is guided by actual customer observation.
Model by Booz, Allen & Hamilton (BAH): This structure focuses on reducing risk and leads development teams through the process of developing strategies.
What are the different stages of Product development?
The process of developing a product not only makes it easier to market a product but also promotes cross-team cooperation, placing teamwork and communication at the center of the activity. Here is the list of different stages of product development in detail:-
Conceptualization of Brainstorming ideas
The process of developing new product ideas is the first step in the creation of a product. This is the stage of product innovation when you come up with product ideas based on market research, concept testing, and consumer demands. The ideas created during this stage will direct the whole product development process, laying the groundwork for all the subsequent phases.
While planning to develop a new product concept it’s a good idea to take the following things into account:
The customer profile for whom you are designing your product in your market segmentation.
It’s really necessary to examine your current product portfolio when you move on with an idea for a new product to learn if your product is already existing in the market or not and solving similar issues.
Early in the development phase, you may make the best iteration of your new concept by analyzing the strengths, weaknesses, opportunities, and threats of your product. By doing this, you’ll make sure your product stands out from the competition and fills a market need.
- The product screening process should be started once you’ve finished the business case and spoken about your target market and product functionality.
- The ideas created must go through a screening procedure to remove the workable ones. To avoid pursuing expensive unworkable ideas, the company asks its employees, customers, and other firms for their input.
- The enterprise’s decision criteria are influenced by external industry issues that have an impact on small firms, such as competition, law, and technological advancements.
- Only a small number of workable concepts from the huge pool of ideas created are still available to the company after the screening process.
3. Idea Development
- The business does research to learn about the possible expenses, revenues, and profits associated with the product. The company does a SWOT analysis to determine the market’s strengths, weaknesses, opportunities, and threats. To clarify the essential components of a functional product you will require financial resources. Thus, it’s important to start outlining a possible marketing strategy as well as a more comprehensive business plan, including projected sales and market share for this product.
- All legal factors should also be considered in the development of a solid business case and later investor recruitment depends on all of this data.
4. Product Development
The process of actually designing and producing a product is called product development. The creation of a prototype that enables market testing kicks off development. The test findings inform the business owner’s decision about whether to proceed with mass manufacturing or not.
5. Distribution and commercialization
Successful development stage outcomes come before mass manufacturing and commercialization. At this point, the company starts its advertising campaign for the new product. The timing and location of the product launch are influenced by the market research carried out during the conceptualization stage.
The multi-stage process of product development comprises moving a product from its initial concept through its eventual market introduction. If you are looking to develop digital products ScrumDigital specializes in creating a wide range of mobile and web development applications and websites from e-learning, healthcare and real estate to e-commerce. Connect with our team today to get started!