New Product Deveopment: Good or Not?

New product development is essential thing for business to improve the product quality
and gain more profit. The life cycle of product tend to be one of reason why the company need
to upgrade their existing product. New product development is necessary for growth of
enterprise, to cope with declining product, the changes of market or consumer preferences and
to deal the new technology. Even many beneficial things that provide by developing new
product, but some people thinks product development can be harmful for the company
because this process is risky and costly.

Most of consumer expect to get sophisticated product in order to fullfil their need. This
condition force the industry to produce better product that appropriate to consumer desires.
The demand pull that come from the individual or grups for certain needs tend to compel the
industry to modifying the existing product (Brem and Voigt 2009). Currently, Stiff competition
in the industry to interpret the changing consumer need is the crucial things to make sure the
product can survive in the market and also there is strong corellation between the success
product with the consumer involvement because consumer can evaluate and suggest for better
peformances and features of product (Iwu, 2010), especially for enterprise focusing on end-
user, the market inducing is very important (Brem and Voigt 2009).

On the other hand, technology advancement is the another reason to develop new
product because the firm should adjust with new technology that provide a better quality
product. Technology push impulse the technical capability to make commercial product use of
new know-how (Brem and Voigt 2009). In addition, new technology may have impact on
production because some invesments require for certain product technology choices
(Lakemount et all, 2007). For example, the firm with business-to-business area is strictly
influenced by new technologies (Brem and Voigt 2009).

Moreover, the good human resource and well organized team to develop new product
is also the important thing to produce a sophisticated and long lasting product in the market. A
team of Research and development (R&D) tend to observe and conduct research to evaluates
the changes in many aspect such as new laws, trends, and technology. So, if there is a small
change that need some adjustment the can directly excecute to modified the existing product,
for example modifications in current software applications (Brem and Voigt 2009).

However, new product development may bring out the drawbacks for the company
because new product reluctant to fail and effect to financial loss. (Crawford, 1992) believe that
new product is very costly because it just gained low profit than existing product and many
mistake can be occurred while development process. But, this problem can be solve if the steps
of product development process is well-followed by the company. Additionally, The firms can
reduce the risk that associated in product or service usage by market testing before launching
product, and expected to forcast additional cost that may need in product development
process (Iwu, 2010).

In conclusion, it is clear that new product development is important to make sure the
product can be survive in the market because many aspect such as market, technology, and
human resource iniatiated for modifying the existing product to get better peformances and
services. Even there is some consideration with the cost but well-prepared product
development process can reduce the risk. Moreover, product development may give more
profit to the firm because the product can statisfiying the consumer need.

References

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Brem, A and Voigt, K-I. 2009. Integration of Market Pull and Technology Push in The Corporate Front End
and Innovation Management-Insights from The German Software Industry. Technovation. Vol. (29):
351–367.
Crawford, C M. 1992. The Hidden Cost of Accelerated Product Development. Journal of Prod Innovation
Management. Vol 9: 188-199.
Iwu, C G. 2010. Impact Of Product Development and Innovation on Market Share. African Journal of
Business Management. Vol. 4(13): 2659-2667.
Lakemond, N, Johansson, G, Magnusson, T and Säfsten, K. 2007. Interfaces Between Technology
Development, Product Development and Production: Critical Factors and A Conceptual Model.
International Journal of Technology Intelligence and Planning. Vol 4 (3): 317-330.