New product development
New product development (NPD) is the process of bringing a new product to the marketplace. Your business may need to engage in this process due to changes in consumer preferences, increasing competition and advances in technology or to capitalise on a new opportunity. Innovative businesses thrive by understanding what their market wants, making smart product improvements, and developing new products that meet and exceed their customers' expectations.
'New products' can be:
- products that your business has never made or sold before but have been taken to market by others
- product innovations created and brought to the market for the first time. They may be completely original products, or existing products that you have modified and improved.
NPD is not limited to existing businesses. New businesses, sole traders or even freelancers can forge a place in the market by researching, developing and introducing new or even one-off products. Similarly, you don't need to be an inventor to master NPD. You can also consider purchasing new products through licensing or copyright acquisition.
This guide explains the importance of NPD and describes the steps involved.