NEW PRODUCT DEVELOPMENT PHASES
Processes for new product conception, production, and introduction fall into three broad phases: a fuzzy front end, development, and commercialization. This path applies to established companies as well as start-ups. Both large and small technology companies realize many traditional management methods do not apply to advanced technology products. The fuzzy front end relies on strategy, development and commercialization rely on tactics, and later, full-scale production relies on operations.

A company strategy formulates how, when, and where it interacts within the real world market environment as well as why it exists and what it provides. The technology matures and evolves toward a product, the opportunity targets a market, and finances solidify. The output at this point is a concept definition combining technology, the customer, and business dimensions. The strategy may change due to the company’s constant exchange of information with the real world market.

An established company already has a framework and funds development internally or externally and usually has many resources already in place to further development at each step. However, it may still go through a front end that requires identifying and analyzing ideas and opportunities, as well as fleshing out a strategy for a specific concept.

The start-up usually seeks external funding, and may lack a strategy or even framework, needing more help at this point (see For Start-Ups).

With funding secured, the plan refines. Marketing considerations enter to shape a business case. Marketing requirements form from situational analysis, customer identification, competition assessment, revenue projection, financial estimates, scheduling, product positioning, and promotional considerations.

In the second phase, marketing drives product requirements as the concept evolves toward a saleable product. Risk tends to drive development into one of two alternative paths. If the technology readiness level is high and the market clear, then the product can move along a staged development path that is structured, disciplined, and predictable and which uses defined decision points to decide what to do next and how to proceed further. The method tends to be linear, going through distinct phases for concept/requirements, design, development, test, and the output generally is a single product version.

A spiral process applies if the technology readiness is low, or the market ill defined: define the market and tech requirements, design, build, test, seek market feedback, then revise and repeat. This method tends to be incremental, creating multiple product versions.

For some intermediate risk level, or for simple products, it may be possible to follow a compressed linear process, shortening development time. Either the technology or market or both may be compressed; the compression amount depends largely on maturity levels.

Product refinement occurs at each stage for either path as design proceeds toward fabrication. Focused activities include product launch planning, defined budgets, risk reduction, and milestone achievement.

Commercialization is the last phase of the overall product development process. Successful products transition from introduction to full-scale production, servicing, and support. High tech products typically follow a product life cycle curve: product introduction, rapid growth and high revenue, maturation, and decline.


APPROACH
Expertise provided at any stage and all stages in technology product development, from ideation to launch. Broadly similar everywhere, the development process is always unique due to the particular company culture and organization. While working within the company framework, maintaining a systems perspective to the company at every stage provides a balanced, evenhanded treatment among major issues including technology, finances, market, risk, strategy, and total available assets.

Some Specifics