Fundamentals of product development.pptx

Fundamentals of product development.pptx

1. FUNDAMENTALS OF PRODUCT DEVELOPMENT

2. Product Development - Is the process of developing, testing, and commercializing a product or service with the ultimate objective of solving the problem of the primary target market.

3. Four Sequential Steps Developing a product or service description Creating a prototype Testing the prototype Validating the market

4. Product or Service Description - Simply describes how a product or service works and how it benefits the customers.

5. Product or Service Description - A clear product or service description is important because this will serve as the blueprint of all business operations.

6. Product or Service Description 1. It should directly address the primary target market in a personal manner using everyday language.

7. Product or Service Description 2. It should highlight the features that will cater to the customer’s needs or address the customer’s problems.

8. Product or Service Description 3. Realistic superlatives should be used for the product description.

9. Creating a Prototype Prototype- is a preliminary model or sample of a new product or service that is created to test a product concept or service process.

10. Creating a Prototype T his is an exciting process for the entrepreneur because he or she will able to see that his or her ideas will soon become a tangible reality.

11. Advantages of Creating a Prototype 1. Creating a prototype enables the entrepreneur to engage in trial-and-error, provides room for improvements, and refines the functionality of the product design or service process.

12. Advantages of Creating a Prototype 2 . Creating a prototype provides the entrepreneur a window to test the performance and specifications of various materials and service details.

13. Advantages of Creating a Prototype 3 . Creating a prototype helps the entrepreneur effectively describe the product or service to the product team.

14. Advantages of Creating a Prototype 4. Creating a prototype elicit respect from key stakeholders and customers. At the same time, a prototype gives credibility to the entrepreneur.

15. Creating a Prototype Is the stage where the entrepreneur can experiment, develop, and make some improvements in the potential product or service.

16. Creating a Prototype The objective of the entrepreneur in this stage is to verify if the product or service concept will work at the simplest, fastest, and cheapest way.

17. Testing the Product Prototype Is a vital process before an actual product or service is launched in the market. Will uncover the final loopholes that need to be fixed before the commercialization

18. Testing Methods Focus group discussion - The participants will provide relevant insights about the new product or service.

19. Testing Methods 2. Legality and ethical test - 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.

20. Testing Methods 3. Safety test - The entrepreneur must ensure that the product is safe to use, safe to b e consumed(food and beverages), and safe to be applied (cosmetics products).

21. Testing Methods 4 . Product costing test - The entrepreneur must examine every stage of the manufacturing process or every process of the service blueprint to evaluate and finalized the cost involved.

22. Testing Methods 5. Product costing test - The entrepreneur must examine every stage of the manufacturing process or every process of the service blueprint to evaluate and finalized the cost involved.

23. Testing Methods 5. Component test - Each component of the product or service must be tested independently to identify components failures for goods or service failures for services.

24. Testing Methods 6. 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.