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Successful companies have a well defined new product development process.This process will act as a road map, providing direction to new products. The steps in the process that we would advocate are:
- Idea Search
- Evaluation and Screening
- Conceptual Analysis - first estimates of sales, costs, profits
- Delivery development - physical development - refine estimates
- Product Testing - challenge estimates and refine again
At the end of each of the last four steps there is a decision for each product idea - do we take it forward to the next step or not. As the steps progress relative costs increase, both for each step and because of the accumulated costs. At the end of product testing there is the key decision whether or not to launch.
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