Product development | Forms | stages | factors

Form of Product Development

Forms development products which need to be developed by the company, there are three kinds are:

• The Initial Development. Of a business use of goods so has the use of a higher level than the previous level.


• Improvement Development. Is any item that changes result in the item being able to meet the needs of the customer or is change an item on a form or forms that are preferred customers.


• New Application Use. Is a use of the goods by way of increases to the item? The use of the goods in the assortment is the hallmark of the variation in product development.

The stages in product development:

Stage Filtering

Filtering Stage is made after a variety of ideas about the product has available. In this stage is the selection of a number of ideas from a variety of sources. As for information or idea comes from the manager of the company, competitors, experts including consultants, the Distributor, subscriptions, or other institutions.

The Business Analysis Phase

At this stage each missing ideas analyzed in terms of business to find out how far the ability of those ideas can generate profit.

The development phase

At this stage, ideas that have been analyzed needs to be developed because the ideas are considered more lucrative. The development of this course should suit the company.

Testing phase

Testing phase is a continuation of the development phase, include the following:

• The testing of the product


• Testing against the Favorites of consumers


• Laboratory studies


• Test the use of


• Pilot plant operation is


• Stage the commercialization

This stage is the last stage of new product development. At this stage all the facilities have been prepared either production facilities as well as on-site marketing. All activities must cooperate despite having different purposes.

Some of the factors that affect product development:

Not the relative position of the competition

With a growing number of similar products being offer then the competition situation increasingly sharp, let alone similar entrepreneurs have more customize products for repair.

The emergence of competition

A goods that sold well in the market and can produce a profit, will encourage other entrepreneurs to produce goods that are sold on these even more quality either.

The use of a variety of goods

With the increasing use of a variety of products then this will encourage the company to develop its results, so the product will have an assortment of uses.

An effective production capacity Utilization

Other factors carry out product development is to utilize production capacity, because the companies generally have not been producing at full capacity.

External factors that are most likely to inhibit the introduction of the product is the increase cost of capital. It is already clear that the funds expend to fund failure is money better spent on developing and introducing a success.

Knowing the cause of the failure can help filter out effort will fail before the already issue too many funds and time. It is very rewarding to see how management assesses some of the reasons of success and failure in an attempt to reach the targets of the new product. As already can be estimate, the reason is similar, namely:

• Market research foresight or not.


• Scheduling time is good or bad.

While that also factors in inhibiting the development of new products is:

• A lack of new product ideas that are important in certain areas (perhaps only left a little way to fix some basic products).


• Market divide (tough competition cause a market fragment).
  Companies should direct their new product on the market, and this means sales and lower profit for each product.


• Social Constraints and Government (new product must meet criteria such as security and environmental balance).


• The expensive process of developing new products (a company generally has to create many new product ideas to find just one decent develop).


• Lack of capital (some companies with good ideas cannot collect the funds need to research).


• A shorter development time (many competitors may get the same idea at the same time, and victory often achieve by the most agile).


• A shorter product Cycle (when a new product is successful, competitors quickly imitate it).