Based on the provided text and diagrams, the product development process is a structured,
multi-stage journey that takes a product from an initial concept to a marketable reality. It is an
extension of the general model of innovation and can be broken down into a series of distinct
phases, each with its own set of activities and milestones. This process is crucial for
entrepreneurs and businesses to systematically evaluate, refine, and launch new products
successfully.
The core of the process can be understood through four main stages: Idea Generation,
Incubation, Implementation, and Diffusion.
Stage 1: Idea Generation
This initial stage is centered on the conception of a new product or service. It involves
identifying a market need or opportunity and formulating an initial idea to address it.
● Synthesize Idea: This is the conscious identification of a product idea that logically
addresses a gap in the market. The idea must not only fill a "need" but also be something
consumers would be "wanted," indicating effective demand.
● Draft of Idea and Timeline: The nascent idea is given more form by putting it down on
paper. This can include preliminary sketches, notes, or flowcharts. Even a rough outline is
crucial at this point to begin a more formal development process. For simple products, a
basic "bench model" might be created to demonstrate the core concept's viability.
Stage 2: Incubation
Once an idea is deemed promising, it enters the incubation stage, where it undergoes
preliminary design and feasibility assessments. This stage is about testing the product's viability
and preparing for more significant investment.
● Preliminary Design and Drawings: The initial concept is developed into more detailed
preliminary designs and drawings. A bench-top prototype may be created to test the
fundamental functionality.
● Actual Design and Prototype: A more refined, working prototype is developed. This
"initial prototype" is a working model that can be tested and demonstrated.
● Feasibility Studies: Crucial analysis is conducted to determine if the product is viable
from technical, market, and financial standpoints.
● Screening and Commitment: The product idea, now supported by a prototype and
feasibility studies, is formally screened. This may involve presenting the proposal to
management or investors. A critical "commitment" decision is made at this point: whether
to proceed with the significant investment required for commercialization. A detailed
business plan is often required to secure this commitment.
Stage 3: Implementation
With commitment secured, the project moves into the implementation stage, which involves
preparing for and beginning production. This phase transitions the product from a prototype to a
manufacturable item.
● Final Design and Limited Manufacturing: The design is finalized, and preparations for
manufacturing begin. This includes assembling the necessary resources, gearing up for
production, and conducting a limited manufacturing run.
● Testing an Innovative Process: If the product involves a new manufacturing process,
this process itself must be rigorously tested. This is done under controlled conditions to
ensure quality, safety, and efficiency before full-scale production.
● Gearing Up for Manufacturing: This involves significant investment in equipment,
tooling, and establishing supply chains.
● Limited Production and Market Testing: The first production runs are typically small.
The resulting products are used for extensive testing. Market tests are conducted with
these initial units to gather feedback from potential customers. This is a critical step to
validate the product and its marketing strategy before a full launch.
Stage 4: Diffusion and Commercialization
The final stage involves launching the product into the market and managing its growth.
● Full Production and Market Expansion: Based on successful market tests, the decision
is made to proceed with full-scale production. The product is launched into the wider
market with a comprehensive marketing and distribution plan.
● Ongoing Design and Control: Even after launch, the product development process is
not over. The product requires ongoing attention to respond to competition, market
feedback, and changing consumer demands. This may involve further development,
updates, or new versions.
● Reacting to Competition: The market entry of a new product often attracts immediate
competition. This necessitates continuous innovation and improvement in what is often
described as a "leapfrogging" market.
● Managing the Product Lifecycle: The product will go through a lifecycle of introduction,
growth, maturity, and decline. The diffusion stage marks the beginning of this cycle, which
requires continuous management and strategic adjustments.
Throughout this entire process, critical milestones and checkpoints exist where the project can
be re-evaluated, modified, or even terminated. The ultimate goal is to move methodically from
an abstract idea to a successful product that can profitably penetrate its target market.
