New product development process is a multi-stage process. Despite of many evidence of its success, many product development managers avoid to establish a policy for new product development process. Their hesitation often arises from two reasons: having feared that a defined strategy may lose a chance to win and they are not able to relay on formulation a new product development process. Here we proposed few guidelines for new product development process. As new products are in need to sustain with continuous success in these competitive market, the new product development process strategy must exist and must be in function to avoid time waste, effort, and money as well as employee uncertainty and ignorance to work. Even people know about the importance and benefits of new product development process strategy, in many cases so many firms are not giving importance to them it’s mainly because of two reasons:
1. Management is not clear about what such statements should cover?
2. Management fears that restrictions may disappoint some useful or creative innovation.
Generally new product development process focussed mainly on two broad areas; to develop new uses for existing products, and to develop highly profitable and reliable products for existing and potential customers. However, we have less understanding concern on effective implementation of new product development process. That is, how does an organisation persuade and implant new structures, systems, process and behavioural patterns that strengthen its ability to introduce faster than its competitors and a stream of new products which customer’s value. To develop a stream of new products we need to know about the issues and challenges will be faced; mind-sets, knowledge, problem solving mechanisms, specialised skills, processes, and management philosophies are needed. The capability to manage new product development process requires a group of abilities which are as follows
- Able to integrate between different functional perspectives.
- Able to interpret the needs of customers.
- Able to forecast technological improvements.
- Must be Capable of selecting and prioritising between projects, etc.
It has been observed that some firms manage innovation better than others because they have learned and developed better capabilities. Importantly, these differences may be individualistic of their specific technological competences. There are three distinct problems for organisations seeking to improve new product development process.
First, new product development process should highlight wide capabilities but not definitely the constituent abilities and routines. For instance, many research studies showed the importance of developing connections and communicating with the marketplace by various functions involved in developing new products to satisfy marketplace. Ultimately there is only minimum information, except in case studies, regarding how some firms are able to do successful new products consistently and effectively than others.
Secondly, since capabilities in new product development process are firm-specific, what it works for one firm might not be the same by simply copying by another and expecting the same results. The underlying problems towards delivering capabilities: it is generic; there is no substitute for individual learning, understanding and implementing. For example, many car companies visited Toyota during the 1980s to know and understand how they can able to make cars so productively. The company was very happy to reveal the secrets of its approach in process innovation, and even there are so many books on the 'Toyota production system' were readily available in the market; however, Incorporating the underlying capabilities took considerably longer and those companies which visited are developing their own versions of the underlying capability only by now.
Lastly, new product development process has been frequently seen largely in technical perspective, different from line management and only slightly connected with the organisations strategy. It is now people start to realised that new product development process must be widespread across a firm and that narrow driven approach will severely restricts the value of resources that can be applied to either product or process. Implementing new product development process requires understanding of the processes in very strong manner which support the introduction, development, articulation, and consolidation of suitable routines. You have to understand the best practices evolving in the organisational development field to draw a framework for determining implementation of changes in structures, process and behaviour. By combining the two approaches of product development and organisational development, the implementation issues involved in new product development process will be solved easily.
So many researches indicate that there is a general lack of importance on the role of new product development in SMEs. It is the fact that the new product development procedure is not seen as critical when considering new business developments. The already developed new product development procedure might help SMEs to better understand what are all the factors to be considered while going for a new product development? The importance of managing the new product development processes in SMEs was noted that poorly managed business process will be a great disadvantage for overall product success. Since the concept of product success is itself very difficult to define, because it is a difficult job indeed to try to define the way which leads to success in new product development. It may be concluded that the many well defined methodologies for the new product development process implementation delivered very good results for firms in terms of cost, time and especially resulted good in long-term process capability. It is a proven fact that the development and implementation of the new product development process in any company will result effective new product development in terms of cost management, time-effectiveness, process capability improvements and as well as quality improvements.