Entrepreneurship -Product development.pptx

Entrepreneurship -Product development

1. Product/ Service Development Prepared by: Mrs. Rivera

2. Learning Objectives 1 2 3 4 5 Develop a product description Create a prototype of the product Test the product prototype Validate the service description of the product with potential suppliers of raw materials and other inputs necessary of the product for service. Select/ pinpoint potential suppliers of raw materials and other inputs necessary for the production of product or service 2 Presentation title 20XX

3. Learning Objectives 6 7 6 7 3 Presentation title 20XX Recruit qualified people for one's business enterprise Discuss the value/supply chain in relation to the business enterprise

4. Product/ Service development It refers to all stages involved in bringing a product from concept or idea. It is the process of developing, testing, and commercializing a product/ service with the ultimate objective of solving the problem of the primary target market. Product/ service development does not mean it is a product management. 4

5. Product development is the entire product’s journey including: Identifying market needs Building the product road map Conceptualizing and designing the product Developing a Minimum Viable Product Releasing the Minimum Viable Product Iterating based on user feedback 5

6. Before a new product/ service is introduced in the market, refining the product/ service should be the first to focus and validate the market acceptability.

7. 7 Presentation title 20XX Developing a Product or Service Description

8. Developing a Product or Service Description The product/ service production describes how a product/ service works and how it benefits the customers. A clear product/ service description is important and this will serve as the blueprint of all business operations. Developing a product/ service description is how you will convince the customer to buy your product. It is now one of the most important aspects of an online shop on how to convince customers to click the “Add to Cart” (Patell n.d.). 8 Presentation title 20XX

9. Here are the three things to consider in developing a product/ service description that sell: 1. TARGET AUDIENCE A good product/ service description starts with a solid buyer persona (break down of the characteristics of your potential customers. Identify which features would be of most interest to your potential buyers. Put yourself in the customer’s shoes where the product/ service description will address (Matson 2020). 2. PRODUCT BENEFITS Potential customers want to know how they benefit them of your product/ service. Developing a product/service description, it is important to write the factual information and features of the product/ service highlighting what your potential customer’s needs and address the buyer’s problems and how they can improve their lives (Matson 2020). 3. POWER WORDS BUT REALISTIC There are certain words and phrases that naturally elicit an emotional response in humans. Old statements such as “World-class service or product excellence” may not matter to customers at all (Matson 2020). 9 Presentation title 20XX

10. Creating a Prototype of the Product or Service A prototype is a preliminary model or sample of a new product or service that is created to test a product concept or service process. What exactly does a prototype look like? - Depends on the idea - Depends on your budget - Depends on your goal 10 Presentation title 20XX

11. Advantages of Creating a Product/ Service Prototype 1. Enables the entrepreneur to engage in trial-and-error, provides room for improvements, and refines the functionality of the product design or service process. 2. Provides the entrepreneur window to test the performance and specifications of various materials and service processes. 3. Helps the entrepreneur effectively describe the product or service to the product team. 4. Elicits respect from key stakeholders and customers. It gives credibility to the entrepreneur. 11 Presentation title 20XX

12. Four Steps in Creating Product/ Service Prototype CONCEPT SKETCH Draw your idea to help you visualize your prototype in greater detail VIRTUAL PROTOTYPE Create a digital sketch of your idea. If you are not skilled with computer drawing and rendering tools, professional graphic designers or prototype designers can assist you with this step. PHYSICAL PROTOTYPE – Build a physical prototype. Once your first prototype is built, you may find flaws that need to correct before you seek a patent. You may need to build several prototypes to get a good one done. LOCATE A MANUFACTURER Locate a manufacturer that can produce your product at a profitable price. If your idea is going to be profitable, you need to be able to build it at a cost that is low enough that you can cover expenses without cutting too far into your revenue

13. How to create a Product/ Service Prototype 13 Presentation title 20XX

14. Testing the Product Prototype Testing the prototype is a vital process before an actual product or service is launched to the market. It will uncover the final loopholes that need to be fixed before commercialization. It gives the entrepreneur a leeway to examine and scrutinize the prototype and provide feedback as to what can be improved before the launch. These improvements and changes must be completed first before moving forward to the next step. 14 Presentation title 20XX

15. Methods applied in Testing the Product Prototype Focus Group Discussion The participants will provide relevant insights about the new product or service. The objective of the FGD is to identify errors, deficiencies, and issues that may impede the success of the product. Participants also need to provide suggestions and practical solutions on how to improve these deficiencies. Legality and ethical test Prior to launching, the entrepreneur must ensure that the product or service complies with all relevant laws and regulations and has a necessary license or permit to operate a particular business. For example, food products must be cleared first with the Bureau of food and drugs (BFAD) before they are offered to the public. The entrepreneur must also make sure that the manufacturing/production of goods or offering of the service does not generate ethical issues such as being threats to health, safety, and environment. Safety test the entrepreneur must ensure that the product is safe to use, safe to be consumed (food and beverages), and safe to be applied (cosmetic products). The product should not in any way harm the customer or put the customer in peculiar situations. in services, the entrepreneur must ensure that the processes to be performed by the service provider must not be detrimental to the safety and health of the customer. 15 Presentation title 20XX

16. Methods applied in Testing the Product Prototype Product costing test the entrepreneur must examine every stage of the manufacturing process or every process of the service blueprint to evaluate and finalize the cost involved. This is the time when the entrepreneur can match the expected costs versus his or her budget. Modification in the manufacturing process or service blueprint can still be made at this point to align with the cost objective of the entrepreneur. Component test Each component of the product or service must be tested independently to identify component failures for goods or service failures for services. Any failure identified must be redesigned and tested again until it becomes fully operational and functional. Competitors’ product/service test the entrepreneur must test a similar line of products or the competitors’ product or service itself to compare and get the best practices to be applied to the new product or service. 16 Presentation title 20XX

17. Validation of Market Acceptability Validation of Market Acceptability is the process of finding out if the intended primary target will be buying the product or availing the service. Market acceptability is a critical factor that the entrepreneur must validate before launching the product or service, because this can strongly suggest if the business will be successful or not. It either validates or disconfirms the perception of the entrepreneur about the suitability of the chosen primary target market. It also tests whether the value proposition and unique selling proposition are appropriate or there is a need to improve on them. 17 Presentation title 20XX

18. Ways to Validate your Product Acceptability Sales Nothing is more important than customers seeing the value in your product and exchanging money for it. Research It can be useful when you are still in the ideation stage. Look also for your competition. Competition is good, because it confirms that there is existing demand for what you plan to sell. Demand and Supply Analyze demand and search volume Campaign Market research can be useful, but real product validation requires paying customers. Feedback Meet your customer in person, you’ll benefit by getting to talk to potential customers, seeing their initial reactions to your product, and finding out if they are willing to spend money on it 18 Presentation title 20XX

19. Select/ Pinpoint Potential Suppliers of Raw Materials and Other Inputs Necessary for the Production of Product/ Servcie Selecting a supplier is the process of looking for a potential supplier to acquire the necessary materials to support the outputs of organizations. Choosing the right supplier scanning a series of price lists, value for money, quality, reliability and service. Identify your suppliers. Set the criteria to help you find the right supplier, you may consider the Cost, Price, Reliability, Stability, Location, Quality & Safety, Delivery, Service, Social Responsibility, Convenience, Simplicity, Risk and Agility (Business Queensland 2017).

20. Discuss the value/ supply chain in relation to the business enterprise Value chain is the whole series of activities that create and build value at every step. A process in which a company adds value to its raw materials to produce products eventually sold to consumers. It gives companies a competitive advantage in the industry, while the supply chain leads to overall customer satisfaction. 20 Presentation title 20XX

21. There are five steps in the value chain process Inbound Logistics Receiving, warehousing, and inventory control. Operations Value-creating activities that transform inputs into products, such as assembly and manufacturing. Outbound Logistics Activities required to get a finished product to a customer. These include warehousing, inventory management, order fulfillment, and shipping. Marketing and Sales Activities associated with getting a buyer to purchase a product. Service Activities that maintain and enhance a product's value, such as customer support and warranty service. 21 Presentation title 20XX

22. Recruit qualified people for one's business enterprise

23. Recruit qualified people for one's business enterprise Your success in the business will depend on your ability to put together a team of highly qualified people who are committed to the goals and objectives of your firm. If your business is on a startup stage, you need to recruit an employee who (Kauffman Entrepreneurs 2005): · embody the company's values · work hard and work smart · have the specific skills required · learn quickly when new skills are needed · able to work with little supervision · take initiative to make things happen · comfortable in the uncertainty of an entrepreneurial situation · are flexible to business needs and changing requirement 23 Presentation title 20XX

24. Instruction: Create a concept sketch or prototype drawing of your product idea. 24 Presentation title 20XX

25. Study for a QUIZ next meeting! 25 Presentation title 20XX

26. Business opportunities are like buses. There’s always another one coming. “ Richard Branson ” 26 Presentation title 20XX

27. Thank you Mirjam Nilsson [email protected] www.contoso.com