EBU5606 Product Development and Marketing-Topic 1 Overview of Product Development 【背】

一、 New Product Development（NPD）

1. What's NPD?什么是新产品开发

(1) New products are the output of the innovation process, the new product development process is the subprocess of the innovation. 

(2) Managing innovation concerns the condition that have to be in place to ensure that the organization as a whole is give the oppotunity to develop products. 

(3) The actual development of new products is the process of transforming business oppotunies into tangible things.

2. The main inputs to planning

二、 Product Failure

1. Reasons

(1) The product offers nothing new or no improved performance.

(2) Inadequate budget to develop ideas or market the product.

(2) Poor market research, positioning and misunderstanding of customer's need.

(3) Lack of top management support.

(4) Did not involve customers.

(5) Exceptional factors, such as government decisions.

(6) Market is too small, either forecasting with error or insufficient demand.

(7) Poor match with company's capabilities, company has insufficient experience of the technology or market.

(8) Inadequate support from a channel.

(9) Late to the market.

(10) Competive response was so strong and competitors were able to move quickly to face the challenge of the new product.

(11) Poor return on investment forcing company to abandon project

(12) Internal organizatonal problems, often associated with poor communications.

(13) Unexpected changes in consumer tastes/fashion.

2. Avoiding failure

Process improvements and a structured approach

(1) Better requirements capture and management

(2) Better planning

(3) Better analysis and screening

(4) Organization-wide process framework

(5) Better execution 

三、 Characteristics of successful product development

1. Product quality

2. Product cost

3. Development cost

4. Development time

5. Development capability