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New Product Development Model

The New Product Development (NPD) Model is a structured approach that guides businesses in bringing new products to market while minimizing risks and aligning with customer needs. It consists of several stages including idea generation, screening, concept development, business analysis, product development, market testing, commercialization, and post-launch evaluation. Various NPD models, such as the Stage-Gate, Lean Startup, and Agile NPD, offer different methodologies to enhance product development efficiency and adaptability.

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7 views

New Product Development Model

The New Product Development (NPD) Model is a structured approach that guides businesses in bringing new products to market while minimizing risks and aligning with customer needs. It consists of several stages including idea generation, screening, concept development, business analysis, product development, market testing, commercialization, and post-launch evaluation. Various NPD models, such as the Stage-Gate, Lean Startup, and Agile NPD, offer different methodologies to enhance product development efficiency and adaptability.

Uploaded by

kineti7606
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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New Product

Development Model
New Product Development
(NPD) Model
The New Product Development (NPD)
Model is a structured approach that
businesses use to bring a new product from
idea to market.
It ensures that the product meets customer
needs, aligns with business goals, and
minimizes risks during development.
A well-structured NPD process increases the chances
of success by reducing risks and aligning with
market demands.
Stages of the NPD Model
1. Idea Generation 💡
Collect ideas from market research, customer feedback,
competitors, employees, and R&D.
Use brainstorming, SCAMPER, and trend analysis for innovation.
2. Idea Screening ✅
Evaluate ideas based on feasibility, market potential, and
alignment with business strategy.
Eliminate weak ideas to focus resources on the most promising
ones.
3. Concept Development & Testing 📝
Develop a product concept with features, target audience, and
unique selling points.
Conduct surveys, focus groups, or prototypes to test customer
response.
Conti….
4. Business Analysis 📊
Assess cost structure, pricing, sales forecast, and
profitability.
Perform risk analysis and decide if the product is
financially viable.
5. Product Development ⚙️
Design and develop the product using R&D,
prototyping, and engineering.
Create a Minimum Viable Product (MVP) for
early testing.
Conti….
6. Market Testing 🏪
Launch a test version in a limited market or conduct beta
testing.
Collect real-world feedback and refine the product.
7. Commercialization (Product Launch) 🚀
Plan production, distribution, and marketing strategy.
Execute a full-scale launch and monitor initial customer
adoption.
8. Post-Launch Evaluation & Improvement 🔄
Track sales, customer feedback, and product performance.
Make improvements, offer updates, or introduce product
variants.
Types of NPD Models

1.Stage-Gate Model
– A structured, phased approach with checkpoints.
2.Lean Startup Model
– Focuses on fast prototyping and MVP testing.
3.Agile NPD
– Uses iterative development and customer
feedback loops.
Key Components of the Stage-Gate Model

🔹 Stages – Different phases of product


development, where activities like research,
testing, and development take place.

🔹 Gates – Decision points where project


continuation, modification, or termination is
decided based on predefined criteria.
Lean Startup Model
• A Fast & Iterative Approach to Innovation

• The Lean Startup Model, introduced by Eric Ries


• It is a methodology for developing new products and
businesses with minimal resources while maximizing
learning.
• It emphasizes rapid experimentation, iterative
development, and customer feedback to build
products that truly meet market needs.
Advantages of the Lean Startup Model

✅ Reduces time & cost by eliminating wasteful


development.

✅ Enhances adaptability through quick pivots.

✅ Minimizes risk by validating ideas early.

✅ Customer-focused—builds what users actually


want.
Real-World Examples of Lean Startups

1.Dropbox – Used an explainer video to test


demand before building the product.
2.Airbnb – Started by renting out an air
mattress in their apartment.
3.Uber – Launched with a basic version for
testing in San Francisco.
4.Instagram started as a check-in app called
"Burbn" before pivoting to a simple photo-sharing
platform.
• The Lean Startup Model is ideal for startups and
businesses looking to innovate quickly with minimal
waste.
• By continuously learning from real user feedback,
companies can refine their products efficiently and
increase their chances of success in a competitive
market.
•Go to Data → What-If Analysis → Scenario Manager
•Click Add to create scenarios with different input values.
•Click Show to see how changes affect the results.

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