Product development is easy to understand. It can be simply put as the process of turning feasible product ideas into a marketable product. As the company is creating a product, they can also create new wealth for themselves. The main key to this to create a product that addresses a need, meaning people willing to pay for it.
Getting a Product Manufactured
Product development begins with coming up with an idea. The best ideas are those that address the needs of the customers. To get that product manufactured from the idea stage takes some time, as it has to go through a number of processes.
The product idea is first selected from a number of possible ideas. Then from there, it is made into a prototype model. The model is used to get feedback from the target market before the final product is made. The prototype can also be used to create hype around the product before it is actually launched. From here, the feasibility of a product is analysed and then it goes into production until it finally gets manufactured.
The success of a product usually requires a lot of resources, and the chance of poor results or failure are very high. Due to the high-level risk of failure, it is vital to understand why product development is important to developers and society.
Why Product Development is Important to Creating New Wealth
Product development is the essence of many companies. A product being developed could be anything from something physical like electric devices, to services such as IT solutions, manufacturing processes or new marketing concepts. Good product development actions all give the following:
- New value to customers
- Improved society
- Continued existence of the company
New Value for Customers
The first and most vital reason for any product development is to create new value for the customer. If the product has no new value, there is no need for the customer to trade their money for the new product. However, if the new product has a lot of value, it will a lot of customers attracted to the product.
A lot of new products are an improvement over the older versions with only a few new features or slightly better performance. Such products may be able to sustain a company by offering some new value to make additional revenue, but they are hardly a boost to society.
There are times when new products will improve society beyond the immediate satisfaction of the consumer. An example of such a product could be the innovation of new medicines or automotive safety devices that may help save a lot of lives. None of these examples may provide the customer with immediate satisfaction but they save lives and hence improve society.
Continued Existence of the Company
New products and services are the essence of any company. Without new products, a company can die off or end up being consumed by another. The society can benefit from the continued existence of such companies by providing continued employment to workers and in large through tax and other social cooperate outputs.
Companies have few choices but to grow and improve if they intend to survive and grow. New products and services being made by companies provide the mechanism for growth and improvement. Through this growth and improvement, a company can create new wealth for themselves and value for society