Question

Compare and contrast the traditional NPD and NSD processes and steps and rationalize any differences you detect. Please explain thoroughly.

Answer 1

The concept NPD simply defines as New Product Development / Design , which covers the complete process of bringing a new product in to market. NPD is described broadly as the transformation of the market opportunity into a product available for sale.

The following are the stages for a NPD process. which are pointing as follows:

1. Idea Generation
2. Idea screening
3. Concept Testing
4. Business Analysis
5. Product Development
6. Test Marketing
7. Commercialisation
8. Review of Market performance

* Idea generation:

It should be done through by conducting Market research, Inviting suggestions from customers etc..

* Idea screening:

For screening the ideas There should be an expert tean in many of the companies. They were carefully evaluate each and every ideas and select the best one among it.

* Concept testing:

After the screening process the organisation go with the concept testing. which is take part mainly to understand the following concepts:

+ whether the customers accept the product

+ whether the customers understand the product

+ to check out the necessity of the product to customers. whether they need it or not.

* Business Analysis:

It is one of the important stage. because it analysis the profitablity. so the comapny implement many methods to make it profitable like cost of product, total sales, advertising etc..

* Product development:

After of completing the above four steps the comapny will introduce new product into the market.

* Test marketing:

It is to understand whether the product is successful or not. so initially comapny will introduce the new product in a small market on a small scale. if it is success they will introduce it in large market.

* Commercialisation:

If test marketing is succesfull, the company will introduce the new product and ready to invest on large volume on that product.

* Review of Market performance:

It is to analyse whether the product is accepted by customers, demand of the product, profit Margin etc..

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The concept NSD simply defines as New Service Development / Design , which is to introduce new services and development initiatives for the business. It is mainly used to improve the end - user satisfaction of the services, and also it can help to manage and deliver ther services in the most efficient and effective way.

The Following are some of the steps in New service design process.

1. Business Strategy development.
2. New service strategy development.
3. Idea generation.
4. Concept development and evaluation.
5. Business Analysis.
6. Service development and Testing.
7. Market testing.
8. Commercialisation.
9. Post introduction evaluation.

From the above study it is clear that both the NPD and NSD are important aspects for every organisation. Both of the almost inter related. Hence, there were a few defferences. they are stated as follows:

NPD

• Products are tangible.
• Products are Physical objects.
• Products want to be produced.

NSD

• Services are intangible activities.
• Services are performed for Better outcome.
• Services cannot be physically produce. it is to be generated