NPD (New Product Development) Process
The New Product Development (NPD) process is a structured approach used by organizations to bring a
new product from concept to market. It typically includes stages from idea generation to post-launch
review. The process ensures alignment with customer needs, business goals, and manufacturing capabilities.
Typical NPD Process Stages
1. Idea Generation
• Purpose: Identify new product opportunities.
• Sources:
o Customer feedback
o Market research
o Internal brainstorming
o Competitor analysis
o Technology trends
• Tools: VOC (Voice of Customer), QFD, benchmarking
Note: VOC (Voice of the Customer)
VOC refers to the collection and analysis of customer needs, expectations, preferences, and
feedback. It helps product developers understand what customers truly want and prioritize features
that deliver value. VOC is typically gathered through surveys, interviews, complaints, market research,
and focus groups.
QFD (Quality Function Deployment)
QFD is a structured method for translating customer requirements (VOC) into engineering
characteristics and design specifications. It uses tools like the House of Quality to ensure the final
product meets customer needs. QFD aligns design, manufacturing, and quality functions with
customer expectations.
Benchmarking
Benchmarking involves comparing a product, process, or performance standard against industry
leaders or competitors. It helps identify best practices, performance gaps, and improvement
opportunities. Benchmarking can be internal (within the company), competitive (vs. other
companies), or functional (across industries).
2. Idea Screening
• Purpose: Filter ideas based on feasibility and alignment with business goals.
• Activities:
o Preliminary technical and commercial assessment
o SWOT analysis
o Risk and ROI estimation
Note:
Preliminary Technical and Commercial Assessment
This is an initial feasibility review conducted before significant investment is made in a new product,
service, or project. It evaluates both the technical viability and commercial potential of the concept.
Key Components:
• Technical Feasibility:
o Can the product be manufactured using current technologies or processes?
o Are the required materials and resources available?
o Does the company have the expertise or will new capabilities be needed?
• Commercial Viability:
o Is there a clear market demand?
o Who are the target customers?
o What is the estimated price point, and how does it compare to competitors?
o Does the idea align with the company’s business strategy?
This assessment helps determine whether to move the idea forward into more detailed development
stages (e.g., concept design, prototyping).
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
SWOT is a strategic planning tool used to understand internal and external factors that can impact the
success of a new product or project.
Components:
Category Description
Strengths Internal capabilities that give an advantage (e.g., strong brand, skilled team, proprietary
technology)
Weaknesses Internal limitations that could hinder success (e.g., limited resources, skill gaps, supply chain issues)
Opportunities External trends or market gaps the company can exploit (e.g., emerging markets, unmet customer
needs)
Threats External risks that could negatively affect the project (e.g., new regulations, competitive actions,
economic shifts)
SWOT helps identify strategic priorities and supports risk-aware decision-making.
Risk and ROI Estimation
This is a structured evaluation of the potential risks involved in the project and the expected
return on investment (ROI) if it succeeds.
Risk Assessment:
• Technical Risks: Will the product work as intended? Are there design or production
challenges?
• Market Risks: Will customers buy the product? Is demand uncertain?
• Financial Risks: Will costs exceed projections? Is funding secured?
• Regulatory Risks: Are there legal or compliance barriers?
• Risks are typically rated by likelihood and impact, and may be managed using mitigation
plans.
ROI Estimation:
