Product‌‌development‌‌process‌ 

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What‌‌is‌‌the‌‌product‌‌development‌‌process?‌  ‌
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The‌‌product‌‌development‌‌process‌‌includes‌‌all‌‌the‌‌steps‌‌required‌‌to‌‌transform‌‌the‌p
‌ roduct‌‌from‌‌ 
concept‌‌‌to‌‌market‌‌usability.‌‌This‌‌includes‌‌determining‌‌market‌‌needs,‌‌studying‌‌the‌‌competitive‌‌
 
landscape,‌‌conceiving‌‌solutions,‌‌formulating‌‌product‌‌roadmaps,‌‌and‌‌building‌‌minimum‌‌viable‌‌  
products.‌  ‌

Who‌‌is‌‌involved‌‌in‌‌this‌‌process?‌  ‌
Because‌‌they‌‌are‌‌ultimately‌‌responsible‌‌for‌‌the‌‌success‌‌or‌‌failure‌‌of‌‌the‌‌company's‌‌products,‌‌
 
product‌‌managers‌‌usually‌‌promote‌‌the‌‌product‌‌development‌‌process‌‌from‌‌a‌‌strategic‌‌  
perspective.‌‌But‌‌this‌‌process‌‌is‌‌not‌‌strictly‌‌a‌‌product‌‌management‌‌function.‌‌Product‌‌
 
development‌‌requires‌‌the‌‌work‌‌and‌‌input‌‌of‌‌many‌‌teams‌‌in‌‌the‌‌enterprise,‌‌including:‌  ‌
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● develop‌  ‌
● design‌  ‌
● Marketing‌  ‌
● Sales‌‌volume‌  ‌
● finance‌  ‌
● Test‌  ‌
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The‌‌product‌‌manager‌‌acts‌‌as‌‌a‌‌strategic‌‌guide‌‌for‌‌the‌‌development‌‌process.‌‌They‌‌bring‌‌  
together‌‌cross-functional‌‌teams,‌‌communicate‌‌the‌‌overall‌‌goals‌‌and‌‌plans‌‌of‌‌the‌‌product‌‌(via‌‌ 
the‌‌product‌‌roadmap),‌‌and‌‌monitor‌‌the‌‌team's‌‌progress.‌  ‌

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What‌‌is‌‌the‌‌common‌‌flow‌‌of‌‌the‌‌product‌‌development‌‌process?‌  ‌
There‌‌are‌‌several‌‌popular‌‌new‌‌product‌‌development‌‌systems.‌‌Below‌‌are‌‌some‌‌examples‌‌of‌‌
 
frameworks‌‌that‌‌suggest‌‌specific‌‌product‌‌development‌‌process‌‌steps.‌  ‌

Design‌‌thinking‌‌method‌  ‌
Design‌‌thinking‌‌is‌‌a‌‌framework‌‌for‌‌developing‌‌new‌‌products‌‌based‌‌on‌‌first‌‌identifying‌‌problems‌‌  
or‌‌needs‌‌from‌‌the‌‌user's‌‌perspective.‌‌The‌‌steps‌‌involved‌‌in‌‌the‌‌design‌‌thinking‌‌process‌‌are:‌  ‌
● Step‌‌1:‌‌‌Resonate‌‌with‌‌users‌  ‌
● Step‌‌2:‌‌‌Define‌‌the‌‌problem‌  ‌
● Step‌‌3:‌‌‌Brainstorm‌‌potential‌‌solutions‌  ‌
● Step‌‌4:‌‌‌Build‌‌a‌‌prototype‌  ‌
● Step‌‌5:‌‌‌Test‌‌your‌‌solution‌  ‌
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For‌‌a‌‌more‌‌detailed‌‌discussion‌‌of‌‌each‌‌step,‌‌please‌‌refer‌‌to‌‌our‌‌Design‌‌Thinking‌‌page.‌  ‌

New‌‌product‌‌development‌‌(NPD)‌‌framework‌  ‌
This‌‌is‌‌a‌‌standard‌‌composite‌‌method,‌‌and‌‌companies‌‌often‌‌use‌‌this‌‌method‌‌to‌‌develop‌‌physical‌‌  
products‌‌instead‌‌of‌‌digital‌‌products‌‌such‌‌as‌‌software.‌‌There‌‌are‌‌many‌‌variations‌‌of‌‌the‌‌NPD‌‌  
framework.‌‌Some‌‌organizations‌‌use‌‌the‌‌five-step‌‌method,‌‌while‌‌others‌‌divide‌‌it‌‌into‌‌as‌‌many‌‌as‌‌  
eight‌‌stages.‌‌The‌‌following‌‌is‌‌a‌‌common‌‌way‌‌to‌‌divide‌‌the‌‌process‌‌into‌‌six‌‌steps:‌  ‌
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Step‌‌1:‌‌‌Ideation‌  ‌
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Brainstorming,‌‌sometimes‌‌called‌‌fuzzy‌‌front-end‌‌steps,‌‌is‌‌where‌‌the‌‌team‌‌shares‌‌all‌‌its‌‌
 
innovative‌‌ideas.‌  ‌
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Step‌‌2:‌‌‌Research‌  ‌
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Verify‌‌your‌‌ideas‌‌with‌‌potential‌‌users‌‌and‌‌review‌‌competitive‌‌products.‌  ‌
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Step‌‌3:‌‌‌Planning‌  ‌
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Purchasing‌‌suppliers,‌‌estimating‌‌production‌‌budgets,‌‌determining‌‌how‌‌to‌‌price‌‌your‌‌products,‌‌  
etc.‌  ‌
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Step‌‌4:‌‌‌Prototyping‌  ‌
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Develop‌‌a‌‌sample‌‌of‌‌the‌‌finished‌‌product‌‌and‌‌share‌‌it‌‌with‌‌key‌‌stakeholders.‌‌Note:‌‌This‌‌is‌‌not‌‌
 
the‌‌same‌‌as‌‌the‌‌minimum‌‌viable‌‌product‌‌for‌‌early‌‌adopters.‌  ‌
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Step‌‌5:‌‌‌Source‌  ‌
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Develop‌‌a‌‌plan‌‌for‌‌the‌‌suppliers,‌‌materials,‌‌and‌‌other‌‌resources‌‌needed‌‌to‌‌transform‌‌a ‌‌
successful‌p ‌ rototype‌‌‌into‌‌a‌‌mass‌‌market‌‌product.‌  ‌
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Step‌‌6:‌‌‌Cost‌  ‌
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Record‌‌all‌‌the‌‌costs‌‌required‌‌to‌‌bring‌‌the‌‌product‌‌to‌‌market.‌‌This‌‌should‌‌include‌‌items‌‌such‌‌as‌‌
 
manufacturing,‌‌materials,‌‌setup‌‌costs,‌‌storage‌‌and‌‌transportation,‌‌and‌‌taxes.‌  ‌
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Another‌‌method‌‌of‌‌the‌‌product‌‌development‌‌process‌‌is‌‌rational‌‌product‌‌management.‌‌This‌‌  
method‌‌is‌‌based‌‌on‌‌a‌‌reasonable‌‌development‌‌process‌‌used‌‌by‌‌the‌‌software‌‌industry‌‌and‌‌  
provides‌‌a‌‌framework‌‌for‌‌strategic‌‌planning,‌‌iterative‌‌development,‌‌continuous‌‌quality‌‌  
verification‌‌and‌‌control‌‌changes.‌  ‌
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What‌‌are‌‌the‌‌best‌‌practices‌‌for‌‌your‌‌product‌‌development‌‌
 
process?‌  ‌
Although‌‌their‌‌specific‌‌methods‌‌are‌‌different,‌‌most‌‌companies‌‌repeatedly‌‌offer‌‌successful‌‌
 
products‌‌to‌‌share‌‌certain‌‌strategies.‌‌Here‌‌are‌‌some‌‌best‌‌practices‌‌for‌‌new‌‌product‌‌
 
development:‌  ‌
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Start‌‌with‌‌the‌‌needs‌‌and‌‌frustrations‌‌of‌‌your‌‌users.‌  ‌
Use‌‌market‌‌research‌‌and‌‌your‌‌own‌‌user‌‌feedback.‌‌(Don't‌‌innovate‌‌in‌‌a‌‌vacuum.)‌  ‌
Communicate‌‌regularly‌‌within‌‌the‌‌company.‌‌Share‌‌knowledge‌‌and‌‌insights.‌  ‌
Use‌‌one‌‌of‌‌the‌‌many‌‌available‌‌frameworks‌‌in‌‌your‌‌product‌‌development‌‌process.‌‌(Don't‌‌
 
try‌‌to‌‌develop‌‌without‌‌a‌‌system.)‌  ‌
Validate‌‌your‌‌product‌‌concept‌‌as‌‌soon‌‌as‌‌possible‌‌in‌‌the‌‌process.‌‌For‌‌some‌‌products,‌‌  
this‌‌may‌‌include‌‌"soft‌‌launches,"‌‌where‌‌you‌‌test‌‌the‌‌product‌‌with‌‌a‌‌small‌‌group‌‌of‌‌early‌‌
 
adopters‌‌before‌‌it‌‌is‌‌fully‌‌launched‌‌on‌‌the‌‌market.‌  ‌
Invite‌‌your‌‌cross-functional‌‌team‌‌to‌‌enter‌‌the‌‌ideation‌‌and‌‌brainstorming‌‌phase.‌‌(Deep‌‌
 
insights‌‌about‌‌your‌‌market‌‌can‌‌come‌‌from‌‌anywhere.)‌  ‌
Set‌‌a‌‌realistic‌‌development‌‌schedule.‌  ‌
Focus‌‌only‌‌on‌‌ideas‌‌that‌‌your‌‌organization‌‌has‌‌the‌‌resources‌‌and‌‌expertise‌‌to‌‌execute.‌  ‌

What‌‌is‌‌a‌‌real‌‌example‌‌of‌‌the‌‌product‌‌development‌‌process?‌  ‌
The‌‌founders‌‌of‌‌Airbnb‌‌have‌‌neither‌‌business‌‌nor‌‌capital,‌‌but‌‌they‌‌intuitively‌‌understand‌‌one‌‌of‌‌
 
the‌‌most‌‌important‌‌elements‌‌of‌‌successful‌‌product‌‌development:‌‌validating‌‌your‌‌product‌‌  
concept‌‌before‌‌starting‌‌production.‌  ‌
Airbnb‌  ‌
They‌‌tested‌‌their‌‌idea‌‌of‌‌​point-to-point‌‌rental‌‌housing‌‌online‌‌by‌‌publishing‌‌the‌‌details‌‌of‌‌their‌‌
 
apartment‌‌and‌‌offering‌‌it‌‌as‌‌a‌‌short-term‌‌lease.‌‌When‌‌several‌‌users‌‌registered‌‌to‌‌stay‌‌at‌‌the‌‌  
founder's‌‌house,‌‌they‌‌knew‌‌they‌‌had‌‌a‌‌viable‌‌product‌‌idea.‌  ‌
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Crystal‌‌Pepsi‌  ‌
Pepsi‌‌made‌‌a‌‌serious‌‌mistake‌‌when‌‌it‌‌launched‌‌Crystal‌‌Pepsi—their‌‌new‌‌sodas‌‌are‌‌healthier‌‌  
than‌‌other‌‌soft‌‌drinks.‌‌The‌‌company‌‌failed‌‌to‌‌verify‌‌their‌‌concept‌‌before‌‌going‌‌public.‌‌Because‌‌  
they‌‌did‌‌not‌‌collect‌‌enough‌‌early‌‌feedback‌‌from‌‌target‌‌customers,‌‌or‌‌used‌‌soft‌‌releases‌‌to‌‌verify‌‌  
early‌‌adopters’‌‌products,‌‌when‌‌their‌‌full‌‌release‌‌of‌‌Crystal‌‌Pepsi‌‌proved‌‌to‌‌be‌‌a‌‌failure,‌‌Pepsi’s‌‌
 
management‌‌was‌‌dumbfounded.‌  ‌

What‌‌is‌‌one‌‌of‌‌the‌‌main‌‌differences‌‌between‌‌product‌‌
 
development‌‌in‌‌startups‌‌and‌‌large‌‌companies?‌  ‌
These‌‌examples‌‌highlight‌‌one‌‌of‌‌the‌‌differences‌‌between‌‌the‌‌product‌‌development‌‌process‌‌of‌‌a ‌‌
start-up‌‌company‌‌and‌‌the‌‌development‌‌of‌‌a‌‌new‌‌product‌‌by‌‌a‌‌mature‌‌company.‌‌Since‌‌the‌‌  
founders‌‌of‌‌Airbnb‌‌have‌‌no‌‌funds,‌‌a‌‌large‌‌team‌‌or‌‌any‌‌track‌‌record,‌‌they‌‌have‌‌no‌‌choice‌‌but‌‌to‌‌  
verify‌‌their‌‌ideas‌‌among‌‌actual‌‌users,‌‌and‌‌then‌‌spend‌‌any‌‌time‌‌or‌‌money‌‌on‌‌development.‌  ‌
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In‌‌contrast,‌‌Pepsi‌‌can‌‌invest‌‌hundreds‌‌of‌‌millions‌‌of‌‌dollars‌‌in‌‌launching‌‌Crystal‌‌Pepsi‌‌(which‌‌  
they‌‌did,‌‌including‌‌Super‌‌Bowl‌‌ads)‌‌without‌‌first‌‌investigating‌‌whether‌‌transparent‌‌soft‌‌drinks‌‌will‌‌  
resonate‌‌with‌‌customers.‌‌In‌‌other‌‌words,‌‌they‌‌have‌‌methods‌‌and‌‌corporate‌‌culture‌‌that‌‌allow‌‌  
them‌‌to‌‌skip‌‌the‌‌research,‌‌verification,‌‌MVP,‌‌and‌‌user‌‌testing‌‌phases‌‌of‌‌the‌‌product‌‌  
development‌‌process.‌‌However,‌‌it‌‌turns‌‌out‌‌that‌‌this‌‌was‌‌a‌‌mistake.‌  ‌
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This‌‌is‌‌an‌‌example‌‌of‌‌why‌‌it‌‌is‌‌easier‌‌in‌‌some‌‌cases‌‌to‌‌develop‌‌new‌‌products‌‌for‌‌startups‌‌than‌‌  
in‌‌large,‌‌well-funded‌‌organizations.‌‌Smaller,‌‌newer‌‌companies‌‌do‌‌not‌‌have‌‌the‌‌resources‌‌to‌‌  
develop‌‌products‌‌without‌‌first‌‌confirming‌‌with‌‌the‌‌target‌‌customers‌‌of‌‌the‌‌product.‌‌Based‌‌on‌‌  
previous‌‌successes,‌‌it‌‌is‌‌also‌‌unbiased,‌‌which‌‌may‌‌cause‌‌its‌‌product‌‌managers‌‌to‌‌think‌‌that‌‌  
they‌‌have‌‌a‌‌viable‌‌idea,‌‌when‌‌in‌‌fact‌‌their‌‌customers‌‌will‌‌reject‌‌their‌‌new‌‌project.‌  ‌
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Therefore,‌‌a‌‌key‌‌point‌‌is‌‌to‌d
‌ evelop‌‌new‌‌products‌,‌‌just‌‌like‌‌you‌‌are‌‌working‌‌for‌‌a‌‌start-up‌‌
 
company-even‌‌if‌‌you‌‌are‌‌the‌‌product‌‌manager‌‌of‌‌a‌‌large‌‌company.‌‌Before‌‌proceeding‌‌with‌‌  
development,‌‌consider‌‌each‌‌product‌‌concept‌‌as‌‌requiring‌‌market‌‌verification.‌  ‌
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Courtesy‌‌of:‌  ‌

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