Business readiness

Product Development Strategy

What is a Product Development Strategy?

A product development strategy outlines your company’s steps to develop new or modify existing products.

A product development strategy defines the approach and resources required to develop new or modify your company’s existing products.

A product development strategy covers:

  • Resource Requirements: Details on resources, such as R&D personnel and finances required to develop or modify your products
  • Processes and Timelines: Details of manufacturing and production processes and timelines to develop a product
  • Market Dynamics: Analysis of market size, customer needs and any similar products already in existence and their market share
  • External Agreements: Details of any third-party arrangements such as technology sharing or joint venture for product development

Why is a Product Development Strategy important for business today?

A product development strategy enables your company to:

  • Define the short and long-term goals for developing and modifying your products
  • Prioritize product pipeline based on your company’s goals and objectives
  • Develop a baseline estimate for financial and labor resources required to develop a product
  • Assess the market potential and business opportunities for your product lines

Why is a Product Development Strategy important for an event tomorrow?

A product development strategy is important for an event tomorrow, as it helps:

  • Benchmark against historical product development strategies and timelines to assess the reasons for any volatility
  • Analyze the financial and operational risks involved in your company’s product strategy
  • Evaluate the costs incurred by your company in developing and modifying your products
  • Determine your company’s manufacturing and technical capabilities and your reliance on third party expertise
  • Assess the competitive advantage of your company’s product portfolio against your competitors
  • Measure the effectiveness of product-specific strategies adopted by your company against market performance

Pros of addressing Product Development Strategy

  • Formulate product development goals and review progress across different stages of development
  • Plan for resources in areas of expertise required in creating a new product
  • Understand and measure in advance the market share, demand for and growth of new, planned products
  • Optimise resource allocation based on new product launches or market timelines to modify and re-launch existing products
  • Respond to customer demands in identified market niches

Cons of not addressing this topic

  • Creates ambiguity in the internal procedures to be followed to develop products
  • Procedures on product development and modification are not followed or recorded
  • Inability to keep stakeholders informed of the product development process and outlook
  • Lack of planning means there is a potential to develop products that have low market attractiveness

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