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Almost all entrepreneurs know that product development is necessary, helps to increase the competitiveness of their products and is a prerequisite for sustainable and long-term success. However, suppose you examine in more detail what product development consists of, how product development is planned in the company, how much of the company's annual turnover is invested in development, and who is responsible for this area and implements product development activities. In that case, it turns out that there are no planned and actual activities.
The management and implementation of product development are left as an additional responsibility, in addition to other tasks, to an employee who lacks the interest and knowledge for effective product development. Product development is like any other process and activity in business: if it is not a priority and focused on, there will be no results.
An investment in the future
Product development is the part of the product life cycle during which a new product or an improved or updated version of an existing product is brought to market. There can be many different goals in product development:
cost reduction,
creation of additional added value,
increasing competitiveness,
increasing production volumes,
simplifying the product, etc.
Strategic and well-thought-out product development is one of the prerequisites for a profitable and growth-enabling company. A company in good shape today may be in trouble tomorrow because they don't have a competitive product.
Value for customers and sales team
Product development that includes the needs of customers and consumers enables the creation of a product that meets the requirements and wishes of customers and consumers. A good product sells itself, allows you to charge a higher price for it and remove unnecessary features that only increase the product price without providing added value. The only advantage of a product must not be low cost, and every salesperson knows that you have to sell value, not at a price.
Advantage over competitors
Competitors do not sleep; they also develop and develop products. Over time, new concepts and ideas are added, technologies evolve, and new competitors enter the market. Product development allows you to stay ahead of your competitors and protect the position you have already achieved. Instead, get ahead of your competitors if this has not been done yet. No product will ever be ready because customer needs change, and those who can keep up with the changes win. Those who do not keep up with development will be left behind.
Do you have a product or are you planning to create a product? Then product development is also needed
Every product we can buy, use, and sell has been developed by someone: invented, experimented with, tested, manufactured and marketed. The product is more likely to succeed if these activities are done thoroughly and analytically. However, if attention is not paid to these activities, there is no particular point in bringing the product to the market because the probability of success is minimal. 90% of the products introduced to the market do not survive the first 4 years, which is why product development and investments in the product must be planned, made carefully, and on the correct principles.
Product development as an organization within an organization
Successful products are not born only from the vision of company managers, a great designer or an idea. Product development is like an organization within an organization that needs a strategic approach, planning, budgeting, management, control and that whole must work together. Product development activities must be planned consciously and with looking ahead to the future. Product development can be complex, resource-intensive and expensive, but it can also be carried out cost-effectively. If you want more detailed information and advice on issues related to product development, feel free to get in touch.
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