Product Development
Overview
Product Development
A Product Development strategy provides a framework for creating new products or improving the performance, cost or quality of existing products. The strategy helps a company achieve business goals, such as entering new markets, selling more to existing customers or winning business from competitors.
A successful product development strategy can also increase revenue and profitability, but careful planning is essential to minimize the risk of costly mistakes.
Product development is a high-risk process with many new product programs failing. To minimize risk and ensure the program delivers its planned benefits, set measurable goals and review progress at each stage of development.
By improving the performance of existing products, you can help your sales team win business from competitors that cannot match the new level of performance.
Setting targets for quality improvement in your product development program can help you increase sales.
Cost reduction is an important product development goal. Lower costs give you the flexibility to lower your prices and win new business or maintain prices and increase your profit margin.