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Business analysis of a new product development
Each new product begins with an idea and then turns into a set of physical characteristics and services offered to a potential client. The process by which ideas are born evaluated and turned into products is called new product development. It should be remembered that this is a somewhat arbitrary description of the process that can be represented as a greater or lesser number of stages.
For example, market testing can be considered as part of the development process and the last stages of business analysis cannot be completed until the final product design is approved and accurate estimates of all necessary investments are made. Nevertheless, these several stages reflect an approximate chronological sequence of actions necessary for the development of a new product.
The main stage in the development of new products is the development of a strategy. Studying the process of developing a new product in companies showed that over 75% of firms have a specific strategy for developing new products that allows them to direct and control this process. At this stage, strategic requirements are identified which the ideas of a new product must satisfy, for example, maintaining market share or maintaining a leading position in the field of technology. Each new product begins with an idea and turns into a set of physical characteristics and services offered to a potential client. The process during which ideas are born evaluated and turned into products is called the development of a new product, which is one of the most important tasks for a company that seeks to maintain technological leadership. Once the strategic roles of new products are defined, you can establish financial performance requirements or “barriers” that new products must overcome, including gross margin sales and return on investment.
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