How Product Development Is Different?
Successful product development requires collaboration across multiple disciplines, including
scientists, lawyers, marketers, and production managers. Each specialist must bring a unique
perspective, but teams must avoid narrow thinking and instead adopt a general management
mindset to ensure a well-rounded approach, and being biased to none. Being creative means
traveling on unmarked roads and leaving our comfort zone; coming up with new product ideas lies in
defining the market positioning, testing, and execution. Companies must rely on strategic creativity
to develop and promote products effectively, often making decisions with incomplete data. Since the
future is unpredictable, teams use heuristics (rules of thumb), experience, and intuition to navigate
uncertainty, though these methods don’t always guarantee success.
Product development can also include working under intense pressure and making tough decisions.
An example of this is when IBM developed its first personal computer in 1980. With only a year to
deliver, a small team had to make quick, high-stakes decisions that ultimately shaped the future of
computing. This case shows how time constraints, competition, and strategic focus drive rapid
innovation. Additionally, businesses must understand the difference between product innovation
(creating new products) and process innovation (improving manufacturing and efficiency)—both of
which play a crucial role in long-term success. The ability to balance creativity, strategy, and
execution under uncertainty is what separates market leaders from the competition.
Many products were discovered accidentally rather than through intentional research. As the saying
goes, "chance favors the prepared mind." For example, the microwave oven was invented when a
Raytheon engineer noticed a chocolate bar melting due to radar waves, while aspartame
(NutraSweet) was found when a G.D. Searle chemist accidentally tasted a compound he had spilled.
Similarly, Scotchgard fabric protector resulted from a 3M researcher noticing that a spilled chemical
made her sneakers stain-resistant, and Teflon was identified by a DuPont chemist while studying
refrigerants. Even Viagra, originally developed as a heart medication, became a major commercial
success due to its unexpected side effects. These examples show how many breakthroughs are
serendipitous, but only those who recognize their potential can turn them into successful products.
What Is a New Product, and What Leads to Success?
A new product can mean different things to different people. As such, it can be categorized to
different things. For instance, a new product can be something that is entirely new, never-seen-
before, product such as new cameras or gadgets. This can include the following:
iPad / iPod
3d Printers
Roller skates
These products are considered new especially at the past since none of these existed yet. Companies
may face a high-risk high-reward case when releasing these kinds of products. For one, a new
product may appeal very useful to the market, but it they can also react to it oppositely.
Another category of new products includes those that are not new to the public, but are new to the
firm. For instance, a bread and pastry firm introducing their new coffee. These are known as the
“new-to-the-firm” or new product lines. A real-life example of this would be Google, a software
company, entering the smartphone industry with their Google Pixel smartphone.
A product can also be considered as new whenever a firm adds products based on existing ones with
the intention to juice profit, diverse risk, and cater to a new market. The following are well-known
example of these:
Coca-Cola and Diet Coke
P&G’s Tide Liquid detergent
Toyota and Lexus
These products are also known as flanker brands or line extensions. One thing that should be noted
is that line extensions should not be confused with “true” innovations. This is because “true
innovations” are completely new products, introducing something newly unique, while line
extensions are just innovations made on existing products.
Existing products can also be improved and thus, considered as new. Current products made better
through revisions or improvements are an example of this.
Apple’s iPhones
Windows Operating Systems
P&G Ivory Soap and Tide powder laundry detergent
These products have undergone multiple revisions throughout their release, offering new features as
they’re released.
Products can also be new by having retargeted applications, new market, and perceived value. These
products are made through repositioning. Firms adjust their marketing strategies, product features,
or branding to attract new customers. Some example of this includes the following:
Marlboro – repositioned from a woman’s cigarette to a man’s cigarette.
Aspirin – repositioned from pain reliever to a safeguard against hear attacks
Baking Soda (Arm & Hammer) – from baking soda to drain or fridge deodorant
Lastly, new products based on existing ones can be introduced to reduce cost. These products
usually use cheaper materials, simple designs, or alternative production methods. Some example of
this includes the following:
Google offers Chromebook, a cheaper alternative for Windows and macOS laptops
LED light bulbs replacing incandescent bulbs
Lenovo’s ThinkBook as an alternative to their ThinkPad laptops
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