Challenges in New Product Development
Product development refers to the entire process of conceptualizing ideas, designing, developing and eventually introducing a new product or service in the market so that it not only outshines competitors but also earn huge revenues for the organization. Launch of a new product definitely raises the expectations of end-users who look forward to something which fulfils their needs and also does not burn a hole in pocket.
Coming out with a new product is not that easy as it seems to be and requires focus, vision, able guidance and working out even the minutest details. There are many challenges involved in new product development and it is essential for the organization and employees associated with it to overcome the same before taking the final plunge.
Let us understand the challenges in new product development:
The first and foremost challenge is to bring skilled people on board who can contribute effectively towards the development of a new product. Launching a new product requires thorough market research, surveys, meeting clients to understand their buying behaviour and preferences. Organizations need to do their homework carefully in the beginning itself for long term success. Not many people are quite comfortable moving out in the field, talking to end-users to find out what type of product would be an instant hit among them. If such people are entrusted the responsibility of developing new product, it would be extremely difficult for the brand to find acceptance among target audience. Data collection, surveys, studying market trends are extremely crucial in new product development and wrong people doing the same would lead to wastage of company resources. Identifying the right individual who has the passion to think out of the box and doing things differently is a big challenge in new product development. Employees who work just for salary would not be able to do justice in such a role.
Paper work, sorting out legal matters, necessary permissions from external (government agencies), copyright issues requires undivided attention and pose to be a major threat in new product development. Organizations need to ensure they have individuals who are excellent in tie ups, liasoning and eventually getting things done. Make sure you have someone who can arrange for permits, product licences so that you do not land up in soup.
Before investing, it is essential for the organization to have the right technology, machines, and infrastructure which support the manufacturing of new product. If you do not have the right kind of machinery, delivering new product within the stipulated time frame can be a major challenge. It is essential for the organization to have experts who can operate high- end machines and also know their jobs well. Believe me, it is foolish to think about developing a new product unless and until an organization has individuals who are not only technically sound but also can design product specifications and work on specific parameters.
Most of the times, problems crop up due to financial constraints. Organizations need to allocate budgets carefully so that they do not fall short of money towards the end. Remember, it is crucial for organizations to work on financial challenges before even thinking of launching a new product in the market. Do not forget that advertisements, brochures, pamphlets, promotional campaigns also involve a certain cost.
Promoting a product can also be a challenge sometimes. You need to carefully design your promotional material so that it does not hurt the sentiments of any particular group or religion. Organizations need to be prepared to face criticism or negative feedbacks from customers after the launch of their new product. In cases, where the new product could not create a market for itself, you need to rethink and relaunch the same. Be prepared for the worst and learn to face tough times with a smile.
- Innovation and Product Management
- Product Management in IT Companies
- Product Management in Indian IT Sector
Authorship/Referencing - About the Author(s)
The article is Written By Prachi Juneja and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.