Every year, nearly 30,000 new products are launched, but according to Clayton Christensen, professor at Harvard Business School, 95% of them fail. This shows how considerable the risks are, and how many challenges companies face.
In this article, we present the key stages of the new product development process, along with success factors and best practices.
What Is New Product Development?
New product development (NPD) is the process from concept to commercialization. It draws on diverse expertise such as design, engineering, and regulatory compliance.
While product development often focuses on improving or adapting existing solutions, new product development aims to introduce entirely novel offerings to the market.
Types of New Product Development
Companies have a wide range of methods and strategies available for new product development. Each offers advantages depending on the goals to be achieved and the market context.
| Type | Description | Example |
|---|---|---|
| New Products on The Market | New products on the market open the door to previously unexplored categories through groundbreaking innovations. Often resulting from cutting-edge research, they create entirely new demand. | Tesla’s electric vehicles or the first iPhone. |
| New Products for The Company | New products for the company belong to categories that already exist on the market but are new to the organization itself. With them, companies can diversify and explore new markets. | Amazon with the Kindle. The company complemented its digital content offering while expanding its field of activity. |
| Product Line Extensions | Line extensions are new models, formats, or variations of an existing product. They rely on a brand’s reputation to offer consumers more options. | Coca-Cola illustrates this approach well with its variants such as Cherry Coke. |
| Product Improvements | Product improvements consist of optimizing the features, ergonomics, or performance of existing solutions. They enable companies to remain competitive and continue meeting the constantly evolving expectations of users. | Smartphone cameras that keep increasing in quality. |
The 7 Stages of The New Product Development Process
Developing a new product involves following a structured, multi-stage process. This approach leads to innovative solutions that are both technically feasible and aligned with market characteristics and user needs.
Idea Generation
The ideation phase marks the starting point of the new product development process. Its purpose is to generate ideas by drawing on different resources such as user feedback, market analysis, or competitor studies. Everything is put in place to fuel the creative process and explore various possibilities.
Idea Screening
After ideation, this step focuses on choosing the most promising idea. The selection is based on specific criteria: technical feasibility, commercial viability, and alignment with the company’s strategy. This approach ensures that resources are used wisely in developing an appropriate solution.
Concept Development and Testing
Concept development consists of transforming the selected idea into a clear and compelling proposal. Testing the preliminary concept by presenting it to potential users allows you to assess its relevance and appeal. This early feedback reduces uncertainty and guides development towards real needs.
William Pelletier
Industrial Designer at CLEIO
Market Research and Business Analysis
Market research is essential for identifying target segments and defining the right positioning. Business analysis complements this work by evaluating costs, revenues, and risks. Combined, these data support decision-making that is both realistic and profitable.
Product Development
From the initial sketch to the functional prototype, product development transforms the original idea into a tangible product. This process allows for iterative testing and adjustments. All technical expertise, from design to engineering to quality assurance, is brought together and works in close collaboration.
Validation Testing
Validation testing ensures that the product meets the real expectations of users. Conducted under real-world conditions, these tests aim to validate the product’s ergonomics, reliability, and safety. This step is essential to make final adjustments, guaranteeing both an optimal user experience and regulatory compliance.
Commercialization
Commercialization is the culmination of the development process. It encompasses production, distribution of the new product, and all the logistics involved. From manufacturing to supply chain management, every step must be perfectly coordinated for a successful market launch.
Key Success Factors in New Product Development
A Shared Vision to Strengthen Collaboration
Having a shared vision across all teams is the foundation of a clear strategy and effective execution. “To ensure this alignment, it is essential to develop a rigorous initial plan that clearly defines objectives and milestones” adds David Dupuis, Director of the Project Management Office at CLEIO. When design and engineering move toward the same goals, cohesion comes naturally. This synergy makes it possible to create integrated, robust, and high-performing solutions.
A User-Centered Design Approach
A user-centered design approach places user needs at the heart of development. Field observations, usability tests, and interviews enable teams to understand user expectations and behaviors. This information guides the design to create a product that is useful, intuitive, and truly tailored to those who will use it.
Strategic Resource Management
Compliance With Standards and Regulations
Adhering to international standards is essential. They impose strict requirements regarding documentation and traceability of the development process to ensure user safety. “The application of recognized standards is voluntary, not compulsory. However, adherence to these internationally recognized methods facilitates the review for market authorization applications. Simply refer to the lists of recognized standards in the guides and databases provided by each jurisdiction,” explains Caroline Lau, Quality Assurance Coordinator at CLEIO.
Product Safety and Reliability
Evaluating the success of new product development relies on several aspects: speed to market, cost control, product quality, user satisfaction, and commercial impact.
Regularly tracking these indicators helps identify opportunities for improvement, optimize resource allocation, and refine the overall innovation strategy.
4 Best Practices for Successful New Product Development
Integrating best practices into the new product development process significantly increases the chances of success. These proven methods accelerate time-to-market, strengthen product quality, and provide the ideal conditions for standing out.
Focusing on User Needs
François Gélinas
Director of Design at CLEIO
Combining Strategy, Design, and Engineering
Bringing strategy, design, and engineering together within a single development team allows ideas to be turned into consistent and robust solutions. This close collaboration fosters innovation and prevents the creation of silos that can slow project progress.
Building a Rigorous Financial Plan
Making Decisions Based on Tangible Data
New product development relies on a structured process that transforms an idea into a concrete, market-ready solution. Each stage contributes to designing reliable products that are centered on user needs and compliant with regulatory requirements.
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