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What is the definition of a product?
What is the definition of a product?
Something sold by an organization to customers. It can be a "Product" or "Service."
What is the core meaning of Product Development?
What is the core meaning of Product Development?
A set of activities that bring a product to market, starting with a market opportunity and ending with a product launch.
Which of the following are success criteria for new product development? (Select all that apply)
Which of the following are success criteria for new product development? (Select all that apply)
What does "Product revenue exceeds product cost" mean?
What does "Product revenue exceeds product cost" mean?
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Development Cost includes the cost of machinery and tooling.
Development Cost includes the cost of machinery and tooling.
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Which of the following is not a key function of new product development?
Which of the following is not a key function of new product development?
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Development Time is irrelevant to the success of a product.
Development Time is irrelevant to the success of a product.
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What are "Development Capabilities?"
What are "Development Capabilities?"
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Which of these are challenges faced during the New Product Development Process? (Select all that apply)
Which of these are challenges faced during the New Product Development Process? (Select all that apply)
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What's an example of a trade-off frequently faced in product development?
What's an example of a trade-off frequently faced in product development?
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Market Dynamics are primarily influenced by competitors' products and customer preferences.
Market Dynamics are primarily influenced by competitors' products and customer preferences.
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What are some examples of details that need to be resolved during product development?
What are some examples of details that need to be resolved during product development?
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Additional development time is typically a positive factor in a product's success.
Additional development time is typically a positive factor in a product's success.
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What are the economic considerations in new product development?
What are the economic considerations in new product development?
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The "Act of Creation" in new product development is a highly collaborative process that involves multiple teams and diverse perspectives.
The "Act of Creation" in new product development is a highly collaborative process that involves multiple teams and diverse perspectives.
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New products are often developed to meet societal needs, potentially improving lives or addressing critical needs.
New products are often developed to meet societal needs, potentially improving lives or addressing critical needs.
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Which of the following is NOT a personal appeal of new product development?
Which of the following is NOT a personal appeal of new product development?
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Team energy is crucial for successful product development, as a committed, energized team can drive innovation and creativity.
Team energy is crucial for successful product development, as a committed, energized team can drive innovation and creativity.
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Excessive involvement from upper management can hinder a team's creativity and decision-making autonomy, leading to a lack of autonomy.
Excessive involvement from upper management can hinder a team's creativity and decision-making autonomy, leading to a lack of autonomy.
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Organizational Conflict can arise when project members are pulled to other tasks, leading to a lack of focus and dedication to the current project.
Organizational Conflict can arise when project members are pulled to other tasks, leading to a lack of focus and dedication to the current project.
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What are potential pitfalls of new product development? (Select all that apply)
What are potential pitfalls of new product development? (Select all that apply)
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Low resources can include a lack of staff, skills, money, or equipment.
Low resources can include a lack of staff, skills, money, or equipment.
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Collaboration among various departments is crucial for successful product development. However, it's important to avoid overwhelming one function, like engineering, with input from other departments, leading to inefficiencies.
Collaboration among various departments is crucial for successful product development. However, it's important to avoid overwhelming one function, like engineering, with input from other departments, leading to inefficiencies.
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Study Notes
New Product Development: Definitions
- A product is anything offered by an organization to customers. It can be a tangible good or a service.
- Product development is a set of activities designed to bring a product to market. This includes activities from market opportunity identification to product launch.
New Product Development: Success Criteria
- Profit: Product revenue exceeding product costs. Profit is a key measure for for-profit organizations.
- Product Quality: The product's ability to perform its intended functions, emphasizing features like finish, reliability, and durability.
- Product Cost: Refers to the costs associated with creating the product, including capital costs (machinery, tools) and unit costs (labor, materials).
- Development Cost: This includes the cost of creating the prototype and manufacturing the initial production units. It assesses the efficiency of the development process.
- Development Time: The time taken by the team to deliver the product; measures how quickly the team reacts to market needs.
- Development Capability: New skills gained during development, potentially creating future competitive advantages.
New Product Development: Key Functions
- Marketing: Identifying market opportunities, defining segments, and identifying customer needs.
- Engineering/Development: Defining the product's physical form, conducting technical design, and carrying out industrial design.
- Manufacturing: Designing the production system, manufacturing the product, and procuring parts.
- Other Functions: Including sales, finance, and legal.
New Product Development: Duration & Cost
- Metric examples: Annual volume, sales price, product life cycle, part count, team size, development time, development cost, and production investment.
- Data provided for screwdriver, printer, and airplane products shows variations across these metrics.
Challenges in New Product Development Process
- Trade-offs: Balancing cost, weight, and performance (e.g., Tesla vs. Prius).
- Market Dynamics: New technologies, competitor products, and changing customer preferences.
- Details: Addressing the numerous details involved in product design and functionality.
- Time Pressure: The limited time available for development, which can impact market share.
- Economics: Significant investment in product development, demanding profitability to create return on investment.
Personal Appeals of New Product Development
- Act of Creation: Creativity in bringing an idea from prototype to success.
- Societal Needs: Satisfying societal needs and potentially saving lives.
- Team Diversity: Diverse perspectives lead to broader opportunities and solutions.
- Team Energy: Positive energy and commitment within a focused team that creates something innovative.
Personal Pitfalls of New Product Development
- No Autonomy: Upper management meddling in the development process.
- Organizational Conflict: Conflicts between project and functional organizational structures.
- Low Resources: Lack of staff, skills, money, or equipment.
- No Collaboration: Over-emphasis on engineering with limited input from other areas like marketing and production.
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Description
Explore the essentials of new product development, including definitions and success criteria. This quiz covers key concepts such as profit, product quality, and costs involved in bringing a product to market.
