New product development

In the fields of business and engineering, the term "new product development" (NPD) refers to the process of bringing a new product to market, updating an old product, or introducing a product to a new market. NPD also encompasses all of these activities. In addition to a variety of financial reasons, product design is an essential component of NPD. The process of turning a potential market into a product that can be bought and sold is a wide definition of what is known as new product development. The goods that are created by an organisation are the method through which that organisation may produce cash. The strategy adopted by many businesses that are heavily reliant on technical innovation is to focus on capitalising on the market's accelerated rate of change.

Even though services and other activities are often differentiated from "products," the product itself may be either tangible (something physical which can be touched) or intangible (such as an experience or a service). Understanding the requirements and desires of customers, as well as the nature of the market and the competitive landscape, is necessary for NPD. Customers' requirements are mostly determined by three factors: price, turnaround time, and product quality. Innovative businesses establish ongoing practises and strategies with these three factors in mind: to better fulfil the requirements of their customers, to grow their own market share via the continual creation of new goods, and to better meet the needs of their competitors. During the whole of the process, businesses will be confronted with a great number of unknowns and obstacles.