INTRODUCTION

Welcome to the official learning partner of Inquiries,

Investigations and Immersion!

This applied track subject in Senior High School

develops critical thinking and problem solving skills
through qualitative and quantitative researches.

For Accountancy, Business and Management Strand,

students will conduct a feasibility study and business
plan, that will be executed eventually as their Business
Enterprise Simulation.

Sincerely,

The Author, 3Is Learning Partner

 ABOUT THE AUTHOR

As a graduate of Bachelor of Science in Accounting

Technology and a completer of Bachelor of
Secondary Education, Mr. Ryan Billie Moran is
literally both a commerce guy and an educator. He
is one of the authors of Fundamentals of
Accountancy, Business and Management 1 and 2
eBooks which were especially made for ABM
SPCians. He also did the Entrepreneurship Learning
Partner (module) that is being used in different
tracks.

Aside from being an accountant and a teacher, he is

also a self-taught graphic and visual artist. He is the
man behind the designs of SPC Senior High
School’s official Facebook page. He is a singer-
songwriter as well.
 Lesson 1

Product Development

Learning Objectives

At the end of the lesson, you should be able to:

1. understand the concept of product development;

2. apply the guide on product development and innovation on your
own business ventures; and
3. formulate an innovative product.

https://bsc.poole.ncsu.edu/wp-content/uploads/2021/03/chris-marquis-forces-article.jpg

In today’s fast-paced, fiercely competitive world of commercial new product

development, speed and flexibility are essential. Companies are increasingly realizing that the
old, sequential approach to developing new products simply won’t get the job done.
The rules of the game in new product development are changing. Many companies have
discovered that it takes more than the accepted basics of high quality, low cost, and
differentiation to excel in today’s competitive market. It also takes speed and flexibility.

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 ENGAGEMENT

This is a walis tambo (broom), a common household cleaning tool and a product
that is always available in the market.
How can you make this simple product a unique and innovative one?
(Your answers can be witty and funny!)

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 EXPLORATION

What is Product Development?

Product development typically refers to all stages involved in bringing a product from
concept or idea through market release and beyond. In other words, product development
incorporates a product’s entire journey.
It all starts with an idea to create a
product.

Standard Stages of Progress in

Product Development
There are many steps to this process,
and it’s not the same path for every
organization, but these are the most common stages through which products typically progress:

Identifying a market need.

Products solve problems. So identifying a problem that needs solving (or a better
way of being solved) is where this journey should begin. Conversations with potential
customers, surveys, and other user research activities can inform this step.

Quantifying the opportunity.

Not every problem is problematic enough to warrant a product-based solution.
However, the pain it causes and the number of people or organizations it impacts can
determine whether it’s a worthy problem to solve and if people are willing to pay for a
solution.

Conceptualizing the product.

Some solutions may be obvious, while others may be less intuitive. Here is where
the team puts in the effort and applies their creativity to devising how a product might
serve its needs.

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Validating the solution.
Before too much time is spent prototyping and design, whether the proposed
solution is viable should be tested. Of course, this can still happen at the conceptual
level. Still, it is an early test to see whether the particular product idea is worth pursuing
further or if it will be rejected or only lightly adopted by the target user.

Building the product roadmap.

With a legitimate product concept in hand, product management can build out the
product roadmap, identifying which themes and goals are central to develop first to solve
the most significant pain points and spark adoption.

Developing a minimum viable product (MVP).

This initial version of the product needs just enough functionality to be used by
customers.

Releasing the MVP to users.

Experiments can gauge interest, prioritize marketing channels and messages,
and begin testing the waters around price sensitivity and packaging. It also kicks off the
feedback loop to bring ideas, complaints, and suggestions into the prioritization process
and populate the product backlog.

Ongoing iteration based on user feedback and strategic goals.

With a product in the market, enhancements, expansions, and changes will be
driven by user feedback via various channels. Over time the product roadmap will evolve
based on this learning and the objectives the company sets for this product. This work
never ends until it’s finally time to sunset a product at the end of its lifecycle.

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Product Innovation
According to Business Dictionary, “product innovation” is defined as “the development
and market introduction of a new, redesigned, or substantially improved good or service.” It’s not
only about developing something new and original, it’s also about taking what’s already there
and making it much better. In other words, not everyone has to be the first to invent driverless
cars, but someone has to be the first to make them better.

Guide on How to Create Successful and Innovative Products

Your brand has to serve an identifiable purpose or deliver value to consumers.

Consumers buy products for the absolute purposes that the products
will serve. Be it that the product brings joy to them, or tickles their
fancy. The point being, the product brings a certain satisfaction or
use to them. And the satisfaction of use is brought about by
acquiring your product.

Your brand has to be of better value from your competition, in the

eye of consumers.
It could be the price, feature, or design difference. A cheaper product may be the
reason for consumers to buy your product and not that of the competition.
There are many reasons which could make consumers choose your product over
your competitors. Always chase that reason and imbed it in your product.

You must deliver efficiency.

Your clientele has to be better off with your product. They must be glad they
possess your product. It should make a better difference in their lives somehow.

Offer easily defined products and product features.

It’s all about describing what your product can do for consumers. When products/
services are easily described and their use is easily understood, they become easier to
sell. It also becomes easier for you to relate what the product will do for the consumer,
and easier for consumers to understand what the product will do for them.
This helps consumers readily identify what your product will do for them. It is also
a quick way to close a sale. This is your product’s hook.

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Offer good quality, good after-sales service and maintenance.
This is how you protect your product’s use, in that it’s always in use and serving
its purpose. This is also how you maximize the value of your business brand, which then
makes your brand the trusted among plenty.

Market a well-branded product.

Branding is the layer that covers your product or a layer that stands for your
product.
You need a logo. A logo is a sharp and distinctive mark that says, “I made this
product, this product of such stature.”
Your product’s packaging is crucial; it should communicate psychology that
captures consumers. It should also explicitly communicate your business name. When
people think of a good product, your brand should come up.

Don’t take forever building your product.

We all are in pursuit of perfection to better our products. Do not take forever to
perfect your product. Things change, people change, relevance changes. Who knows…
someone might come up with an idea similar to yours.
Don’t overload your product. The best way to test its viability is to release it in the
market and improve it along the way. For as long as a product is able to serve a
particular purpose and add value to the market, people will be willing to pay money for it.
The best way to learn as an entrepreneur (value provider) is through engaging
your product with the market (selling), as soon as possible. Whatever the stage of the
product, it must serve value or purpose that which people can exchange money for.
Say you take time loading features onto your product and then release the
product into the market. The market will give you feedback on what to tweak.
It would take more time to tweak and return the product to the market than if you
had fewer features. Another reason not to overload your product is, once you get into the
market and competition strikes, the extra unloaded features can be used as ammunition
to stay ahead.

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 Protect product use value through innovation and consistent enhancement.
The truth of the matter is that everything changes. People change, the
competition gets tougher, and other factors like piracy take their course.
Say you release your product this year and people buy it. Next year, and the
following years, they have no reason to buy it again because they have it already. Your
duty is to then give them such a reason to continue buying. The role of a business is to
make money every day (or year) if possible and keep making it. So, the year following
the product release, release something that the same consumer who bought the first
product can buy so as to continue making money.
Even if it’s an enhancement of the current product, those that bought the old one
would want the new one because it has something that the old one doesn’t have. In this
way, you will continue making money. But be very careful not to totally take the crap out
of the previous product. You might upset your first consumers.

Product innovation is a challenge no

matter what industry you’re in. The road is fraught
with detours and roadblocks. The crash-and-burn
stories are legendary. And the fear of failure can
haunt even the most intrepid of enterprises.
But before you do anything, understand
first what your goals are with product innovation.
The market is always in flux, and the speed of
change and disruption is only increasing. With
consumers holding more of the cards, it’s
imperative to accept that product innovation is not
a nice-to-have, but an essential component of a
successful business in today’s world.

Starting with a back-to-basics understanding of product innovation gives you a renewed

sense of purpose and helps you move in the direction you need to go. Then, embracing an
entrepreneurial spirit, deepening your understanding of your customers, and utilizing the latest
market research tools and technologies to support your efforts will get you all the way there.

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 EXPLANATION

LESSON 1: Product Development

Name: Score:
Section: Date:

Answer the following questions based on your own understanding.

1. What is product development?

2. Why is it important to think of innovative products as an entrepreneur?

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 EXPLANATION

LESSON 1: Product Development

Name: Score:
Section: Date:

Answer the following questions based on your own understanding.

1. What is product development?

2. Why is it important to think of innovative products as an entrepreneur?

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 EXTENSION

LESSON 1: Product Development

Name: Score:
Section: Date:

Think of a unique product (or service) on your

own, it may be food, tools or anything, and write
it inside the callout balloon. Explain why your
product is distinct from the others.

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 EVALUATION

LESSON 1: Product Development

Name: Score:
Section: Date:

Write TRUE if the statement is correct and FALSE if otherwise.

_____________ 1. The proposed solution should be tested whether viable before too much time
is spent prototyping and design.

_____________ 2. A logo is a sharp and indistinctive mark.

_____________ 3. Product development refers to all stages involved in bringing a product from
concept or idea through market release and beyond.

_____________ 4. Every problem is problematic enough to warrant a product-based solution.

_____________ 5. Your brand has to be of same value from your competition, in the eye of
consumers.

_____________ 6. This initial version of the product needs just enough functionality to be used
by customers.

_____________ 7. Innovation can also mean improving products that are already existing in the
market.

_____________ 8. Enhancements, expansions, and changes will be driven by user feedback

via various channels.

_____________ 9. Product development starts with identifying a problem that needs a solution.

_____________ 10. One reason not to overload your product is, once you get into the market
and competition strikes, the extra unloaded features cannot be used as ammunition to
stay ahead.

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