Product Development Cycle - Plan. Build. Feedback. Repeat. | Starting a Startup - Entrepreneurship PDF Download

Product Development is generally done by startups in an unplanned manner which leads to a lot of time being wasted with multiple unnecessary iterations. If certain order and processes are followed, a lot of time and money can be saved. 

The product development process typically consists of several activities that startups deploy in the complex process of delivering new products to the market. Every new product will pass through a series of stages from ideation through design, manufacturing and market introduction. The development process basically has three main phases:

1. Fuzzy front-end (FFE) is the set of activities employed before the formal and well defined requirements specification is completed. Requirements are a high-level view of what the product should do to meet the perceived market or business need.
2. Product design is the development of both the high-level and detailed-level design of the product: which turns the what of the requirements into a specific how this particular product will meet those requirements. On the marketing and planning side, this phase ends at pre-commercialization analysis stage.
3. Product implementation is the phase of detailed engineering design of mechanical or electrical hardware, or the software engineering of software or embedded software, or design of softgoods or other product forms, as well as of any test process that may be used to validate that the prototype objects actually meet the design specification and the requirements specificationthat was previously agreed to.
4. Fuzzy back-end or commercialization phase represent the action steps where the production and market launch occur.

Most researched Chronological five-step procedure in regard to new product development

1. Understand and observe the market, the client, the technology, and the limitations of the problem;
2. Synthesize the information collected at the first step;
3. Visualise new customers using the product;
4. Prototype, evaluate and improve the concept;
5. Implementation of design changes which are associated with more technologically advanced procedures and therefore this step will require more time.

Another Eight stage Approach towards Product Development including Marketing: 

1. Idea Generation is often called the "NPD" of the NPD process.
   • Ideas for new products can be obtained from basic research using a SWOT analysis (Strengths, Weaknesses, Opportunities & Threats). Market and consumer trends, company's R&Ddepartment, competitors, focus groups, employees, salespeople, corporate spies, trade shows, or ethnographic discovery methods (searching for user patterns and habits) may also be used to get an insight into new product lines or product features.
   • Lots of ideas are generated about the new product. Out of these ideas many are implemented. The ideas are generated in many forms. Many reasons are responsible for generation of an idea.
   • Idea for new product can come from many sources, such as customer, scientists, competitors, employees, channel member, and top management.
   • customer need and wants are the logical place to start the search.
   • Idea Generation or Brainstorming of new product, service, or store concepts - idea generation techniques can begin when you have done your OPPORTUNITY ANALYSIS to support your ideas in the Idea Screening Phase (shown in the next development step).
2. Idea Screening
   • The object is to eliminate unsound concepts prior to devoting resources to them.
   • The screener should ask several questions:
     • Will the customer in the target market benefit from the product?
     • What is the size and growth forecasts of the market segment / target market?
     • What is the current or expected competitive pressure for the product idea?
     • What are the industry sales and market trends the product idea is based on?
     • Is it technically feasible to manufacture the product?
     • Will the product be profitable when manufactured and delivered to the customer at the target price?
3. Idea Development and Testing^{[citation needed]}
   • Develop the marketing and engineering details
   • Product Idea - It is an idea for a possible product that the company can see itself offering to the market.
   • Product Concept - It is a detailed version of the idea stated in meaningful consumer terms.
   • Product Image - It is the way consumers perceive an actual or potential product.
     • Investigate intellectual property issues and search patent databases
     • Who is the target market and who is the decision maker in the purchasing process?
     • What product features must the product incorporate?
     • What benefits will the product provide?
     • How will consumers react to the product?
     • How will the product be produced most cost effectively?
     • Prove feasibility through virtual computer aided rendering and rapid prototyping
     • What will it cost to produce it?
   • Testing the Idea may involve asking a number of prospective customers to evaluate the idea
4. Business Analysis^{[citation needed]}
   • Estimate likely selling price based upon competition and customer feedback
   • Estimate sales volume based upon size of market and such tools as the Fourt-Woodlock equation
   • Estimate profitability and break-even point
5. Beta Testing and Market Testing
   • Produce a physical prototype or mock-up
   • Test the product (and its packaging) in typical usage situations
   • Conduct focus group customer interviews or introduce at trade show
   • Make adjustments where necessary
   • Produce an initial run of the product and sell it in a test market area to determine customer acceptance
6. Technical Implementation
   • New program initiation
   • Finalize Quality management system
   • Resource estimation
   • Requirement publication
   • Publish technical communications such as data sheets
   • Engineering operations planning
   • Department scheduling
   • Supplier collaboration
   • Logistics plan
   • Resource plan publication
   • Program review and monitoring
   • Contingencies - what-if planning
7. Commercialization (often considered post-NPD)
   • Launch the product
   • Produce and place advertisements and other promotions
   • Fill the distribution pipeline with product
   • Critical path analysis is most useful at this stage
8. New Product Pricing
   • Impact of new product on the entire product portfolio
   • Value Analysis (internal & external)
   • Competition and alternative competitive technologies
   • Differing value segments (price, value and need)
   • Product Costs (fixed & variable)
   • Forecast of unit volumes, revenue, and profit

These steps may be iterated as needed. Some steps may be eliminated. To reduce the time that the NPD process takes, many companies are completing several steps at the same time (referred to as concurrent engineering or time to market).