01 April 2014
Four Steps to Improved Product-Development
Most companies recognise that business growth is possible only with innovation and new product development however, many firms also struggle with designing and launching new products. Connecting four basic business activities can lead to success. There four simple steps necessary to make your firm's product development effective, these are: Innovation Strategy; Portfolio Management; Stage-Gate Management, and Cross-Functional Team Launch.
A firm must clearly define its innovation strategy within its business strategy. An innovation strategy focuses on market opportunities, new technologies, and categories in which the firm can implement growth initiatives. An innovation strategy should bring direction and clarity to new product development projects.
Successful strategies are executed by selecting the right projects. Most companies must balance short-term returns with longer-term (and higher risk) investments. A portfolio management process can help senior management identify and select product development opportunities that are most closely aligned with the innovation strategy. Thus, the highest value projects are assigned the highest priority based upon acceptable risk and reward criteria.
An idea-to-launch system, typically called a stage-gate system, ensures that each individual project is executed with the highest quality. Stage-gate systems reinforce strategic decisions and minimise risk by forcing stepwise investment for the development project. As each segment of work is completed, the new product initiative is evaluated against a formal set of decision criteria. These criteria represent characteristics of past successful projects in the same category.
Cross-Functional Team Launch
New product projects must be supported by committed, cross-functional teams to be guaranteed a successful launch. The team members must represent all of the necessary functions within an organisation, whether they be engineering, design, marketing or sales.
If you want to learn more about product development or have a software issue they needs remedying, then, contact us at Aerion Technologies today.