Business Planning

NEW PRODUCT CONCEPT AND DEVELOPMENT

Convergence of three minds

Creative Mind: it design a product when it sees a need for one; it is the thinking
process that discover a purpose for creating the Product of Service. Aka the
Inventors mind.
Technical Mind: it is inspired by a new knowledge. It is passionately driven to
convert this new knowledge into something functional and operational. Electricity
and light-bulb and Iphone are some of the results of a technical mind.
Business Mind: it harness the potential of new products by creating the market
space for them. This is only possible if the business mind can effectively match
together the potential products to its proper target market. The business minds
also manages the external and internal business environment of the new product
development process itself.

Innovation

2 types of Innovation

Incremental Innovation: these are continual improvements on an existing products
or services or in the ways that products are manufactured and delivered.
Radical Innovation: these are the result of major changes in the ground rules of
competition, culminating in either a customer satisfying her needs in an entirely
new ways or in totally new need being created through innovation.

The Seven Steps Towards New Improved Product

1. Test the market of an existing and leading products to determine the positive
AND negative attributes according to their customers.
2. Isolate the negative features and attributed for improvement purposes and the
positive features and attributes for retention purposes.
3. Read all literature and consult various experts to learn all about the product and its
market. The purpose of this process is to pinpoint the critical variables that come
into play when making and marketing the product.
4. Generate several options and possibilities on how the product could be improved
by focusing on removing the negative features and attributes while reinforcing the
positive ones.
5. Test the product/s variation several times and its reconfiguration scientifically,
preferably using well-informed respondents. Apply rigorous testing
methodologies.
6. Gear for production by standardizing the transformation process when handling
larger volumes of products.
7. Once the final product reconfiguration is chosen, design the production work
process starting from the gathering of the inputs all the way to the conversion of
these inputs into the final inputs to be marketed.