Abstract
The primary goal of this research paper is to identify current product development strategies and their advantages. Issues that companies have to deal with during the process of implementation of such approaches are mentioned. Many companies struggle to stay competitive because some of the products become outdated. The demand for new ones has been increasing because new technologies are being introduced every single day, and some of them may be incredibly disruptive. Overall, the focus of this paper is on current trends, and aspects that should be taken into account by an enterprise to ensure that product development strategy is efficient and any possible expenses are minimized.
Introduction
It is imperative to mention that the role of product development has been increasing over the years. The most important aspect that needs to be mentioned is that an enormous number of strategies and approaches have been developed, and some of them are incredibly efficient. The issue is that many enterprises do not devote enough attention to this process, and prefer to use the same strategy for every type of product. Furthermore, it may lead to numerous issues, and such an approach cannot be regarded as effective most of the time.
Methodology
Several methods of research have been chosen for this paper. First of all, it is necessary to note that a broad range of peer-reviewed articles will be reviewed to identify current strategies and trends that are related to product development. One of the most significant factors that should not be disregarded is the determination of possible advantages and weaknesses of particular approaches. The descriptive research method has been because it is appropriate in this case, and it has proven to be incredibly efficient.
Results
It is necessary to mention that there are numerous articles on this topic, and some of the approaches that are suggested by authors can be regarded as incredibly efficient. The most attention is devoted to such aspects as the utilization of resources that are available and minimization of expenses. One of the studies suggests that it would be wise to take advantage of modern technologies, and many enterprises still use tools that are outdated. It is imperative to understand that it is necessary to keep track of the latest trends in the industry to identify particular areas that may have potential (MacCormack, Crandall, Henderson, & Toft, 2012). For example, an enterprise may try to develop a strategy that will be focused on such aspects as minimization of possible risks and others that may be harmful to the company. It is necessary to develop several prototypes of a product, and they should be viewed from different perspectives to have a better understanding of their advantages and weaknesses.
Also, another significant point that has been noted is that product development strategy should be based on the strategic goals of the enterprise and must be appropriate because efficiency is of utmost importance for modern businesses. It is paramount to understand that a firm should develop a set of styles that should be selected based on the situation or target market. For example, it may focus on such aspects as the level of emergency, effectiveness, and others. Another study indicates that the most attention should be paid to knowledge utilization because it is stated that it affects the level of performance on the market of a product that is innovative (Zhang, Di Benedetto, & Hoenig, 2009). It is understandable that every single situation needs a unique approach, and it may be hard to predict all possible outcomes. However, the results of this study are statistically significant, and they suggest that this approach would allow the company to be capable of developing products that are consistently profitable, and the knowledge that is gained in the process may also be viewed as incredibly valuable.
Projects that are breakthrough, products that have new features and the ones that can be regarded as minor improvements over previous ones may also be useful, but an ability to analyze the information that is available and utilize experience should be valued the most. Also, it is paramount to mention that another study suggests that such an aspect as the pace of new product development should be taken into account. One of the most significant aspects that are frequently overlooked is that most believe that a fast speed of the process and rapid commercialization are the most effective. However, the results of this research indicate that the approach needs to be flexible, and it is imperative to be capable of predicting possible issues in the industry (Kiss & Barr, 2014).
Also, numerous changes to the strategy may be made if it is necessary. The biggest problem that current businesses have to deal with is that the environment is changing at an incredibly fast rate, and it is likely that the situation is not going to change anytime soon, and a firm should be able to adapt to stay competitive. Authors of another recent study state that many companies would be able to gain a significant competitive advantage if they implement a strategy that is focused on modular product architecture. They suggest that it has a broad range of benefits and can be used to provide customers with many functions. The fact that it helps to increase the level of diversity also needs to be taken into account, and this aspect may be used by the enterprise to expand or focus on new target markets (Shikata, Gemba, & Uenishi, 2013). However, the problem is that it may not be an easy task to implement this approach because it requires significant amounts of resources, and the process may take too much time in some cases.
Discussion
A new product development strategy needs to be carefully developed because companies have to deal with numerous issues that may complicate the process such as the overall design of a particular product (Hsu, 2011). Many firms have recognized the fact that changes in the industry should be taken into account during the development of new approaches. Moreover, it is especially true when new products are being introduced because such activities may be incredibly risky in some cases, and firms need to take necessary measures to ensure that there are no complications that would hurt the business in the long-term. It is believed that a new project development strategy is one of the core factors that determine the level of success of a particular firm, but the connection between these two aspects is not direct most of the time.
Another core aspect that should not be overlooked is that many strategies have been developed in the past, but a company may make particular modifications to the process if it is necessary. Furthermore, it is necessary to mention that flexibility is one of the most important factors that should be considered by the company. Moreover, every single enterprise should be able to deal with possible changes in the industry and crises, and a set of well-developed product development strategies should help to address these issues. Also, the fact that the need for unique products has been increasing should not be overlooked, and it is one of the core factors that should affect the decision-making process of higher-ups. However, it is important to understand that efficiency needs to be preferred over other aspects most of the time, and the company should invest in research of current technologies because it has been recognized that a focus on knowledge is useful in most cases, and may lead to significant profits.
Conclusion
In conclusion, it is evident that the role of product development strategy should not be overlooked, and every single company that wants to stay competitive needs to invest in such activities because customer demands are always increasing (Awny, 2006). It is believed that many enterprises still use strategies that are not efficient and are in need of improvement. Furthermore, it is paramount to note that a well-developed strategy may lead to a significant advantage over competitors. The issue is that it may not be an easy task to justify such expenses most of the time, and many enterprises prefer approaches that are more traditional. Overall, it is necessary to have an understanding of the fact that the process of product development can be incredibly risky most of the time, and numerous internal and external factors should be considered to avoid possible complications or losses of profit.
References
Awny, M. (2006). Product development strategy: a perspective of enterprises. International Journal of Product Development, 3(2), 143-151.
Hsu, Y. (2011). Relationships between product development strategies and product design issues. Journal of Engineering Design, 22(6), 407-426.
Kiss, A. N., & Barr, P. S. (2014). New product development strategy implementation duration and new venture performance: A contingency-based perspective. Journal of Management, 20(10), 1-26.
MacCormack, A., Crandall, W., Henderson, P., & Toft, P. (2012). Do you need a new product-development strategy? Research-Technology Management, 55(1), 34-43.
Shikata, N., Gemba, K., & Uenishi, K. (2013). A competitive product development strategy using modular architecture for product and service systems. International Journal of Business and Systems Research, 7(4), 375-394.
Zhang, J., Di Benedetto, A., & Hoenig, S. (2009). Product development strategy, product innovation performance, and the mediating role of knowledge utilization: Evidence from subsidiaries in China. Journal of International Marketing, 17(2), 42-58.