Written by Allan Kerr | March 13, 2018 Show
Before jumping into the design of your hardware product, make sure you ask yourself these 5 questions: 1. How will your product compete?What will be the main value proposition of your new product? What will make it unique from competitive alternatives? A two-dimensional positioning map helps you visualize how buyers will perceive your planned product relative to their alternatives. In doing so, it forces you to identify the most important dimensions of competitive differentiation and to decide how you will compete. The example below shows the 2D position map for wearable fitness devices. For products that bring brand new value and features to a user group, the chart may have very few reference points. You can add on an existing product (or a group of products together) that deliver some or all the new features, then map these as alternatives as well. Wearable fitness was new 10 years ago and had only a few data points, the chart shows just how busy this space is now just for fitness trackers. Like Fitbit, if you plan to be first-to-market in a new category, you must consider how long you can sustain that position, and how you want to be positioned relative to competition when it does invariably arrive. There are many competitive factors to consider, and pragmatism is important when considering the trade-offs between them, start by selecting one thing to be great at and do your best on other features:
2. Who will lead your development effort?You may have all of the in-house expertise and capacity required to lead and execute the development of your next product, but often that’s not the case. Your in-house team may be consumed with other projects, or you may lack the specialized expertise required to address specific technical challenges. In the case of smart, connected products (i.e.Internet of Things - IoT) , you may need help architecting the overall solution and coordinating the work of multiple suppliers. This requires a product design team that designs the product to optimize a ‘user experience’, encompassing different locations, situations, interacting devices, network configurations etc to deliver the product value. You may need help to architect and complete the overall solution as well as to coordinate the work of multiple design specialties and production suppliers to arrive at a successful solution. There are several common approaches used by companies:
3. How will you validate your product design?The largest risk associated with innovative new to market product is commercial failure -the market does not need or want your product. Cost overruns in the R&D and production preparation stage are inevitable. Delays are always painful, but they are soon forgotten if product sales take off. When a product takes off the R&D costs become a fraction typically less than 10% of the sales revenue after 4 years. Conversely, even if the development project is on-time, on-budget, and on-spec., the effort is wasted if sales fall flat. It is crucial that throughout the product development process you seek validation of market demand, your value proposition, and your product’s feature set and design. Fortunately, you have many quantitative and qualitative assessment tools at your disposal. The main strategies include:
4. What is your business model for acquiring customers and how will it impact your design?Your customer acquisition and revenue models may have implications for your product’s design. Smart, connected products (Internet of Things) consist of wireless interconnected hardware, applications, wired connections, data storage, data feeds, database queries, cloud software libraries, licensing and more. That expands your range of possible business relationships and revenue models (each with specific product feature requirements) and you need to consider your customer-facing services and hardware purchase model:
5. How will your new product fit into your product portfolio plan?If you already have a portfolio of products, you need to understand how your new product will fit into the mix and how it might affect your overall sales. Even if you are launching a new one-product company, you need to consider your paths for future growth of features, customers and services. Several strategic considerations include:
Geoffrey Moore's Famous Bowling Alley Marketing Development Analogy Successful product development follows a solid product development strategy. Solid, consistent answers to the above five questions are the basis for a winning product development strategy—one that will guide you through the tactical work of defining feature sets, cost and performance targets, realistic project timelines, and more. The Five Key Elements of a Winning Strategy for Product Development:
Product Development News and ResourcesIt looks like your browser is out of date. Please upgrade your browser in order to view this website properly. What is the most important thing to consider in new product development?New Value for Customers
The first and most important reason for any new development is to provide new value to the customer. Without this, there is no reason for them to trade their money for the new device. However, if the product or service offers overwhelming value, then customers will flock to it.
What are the vital questions that you need to answer in developing a product?The best questions to ask for developing any product. What are the demographics of my target consumer?. How do my target consumers currently use my product?. What problems can I solve that my competition cannot?. What do my customers dislike about my product?. What ideas do customers have to improve my product?. What should be considered when developing a product?Although the product development process differs by industry, it can essentially be broken down into seven stages: ideation, research, planning, prototyping, sourcing, costing, and commercialization. Use the following development framework to bring your own product idea to market.
What questions would you ask a customer when designing a new and/or improved product process or service?You just need to ask the right product questions throughout the development cycle to better understand their needs.. Looking around this prototype, what do you think it's for?. What would you expect to be able to do?. What's the first thing you'd do here?. If you had a magic wand, how would you change this?. |