Points to Ponder for Service and Product Development

Points to Ponder for Service and Product Development

When the company has managed to understand the buying behavior of the market that it wants to attend and has chosen to establish a competitive position that gives it an advantage over the potential competitors, it must adapt to the needs of that market.

This response of the company is of strategic importance lays the foundation for its growth and development and presents two significant challenges as a starting point.

The first of these has to do with the definition of the business to which it wants to dedicate itself, the dimensions of the benefits to be offered to the selected market and the technology to get them.

The second is to convert that technological solution to Products and Services, which constitute the way in which the benefits are made available to the market.

Of the three dimensions on which the business is defined, technology is the one that changes more dynamically, so that the activity of product development is permanent. Recognizing that products and services evolve over time leads the company to act proactively to control the stages involved in that process of evolution and respond to the critical questions of product development.

You have to consider the product change over time in the face of customers’ interest, competitors’ actions and economic, technological, and the governmental conditions. Beyond a successful launch, you also consider how long it will take until the product is ‘accepted’ by the public and the ways to minimize the implicit risk in the development of new products and services.

We must understand that a product or service is considered new when the consumer or user considers it new, not when it is new to the company that offers it, so that the process of developing new products and services can be continuous and dynamic.

There are many reasons for success of the product development and launch. You simply have to read the failing factors in the opposite direction for the correct strategic direction to have enough consumer information.

In general, success in product development is achieved insofar as the market offers significant advantages over what already exists, for which it is indispensable to ask if the product or service is compatible with the needs of the consumers, with the strategic objectives of the company, with its ability or competence and with its resources.

From the customers’ point of view, it is important to them that there is compatibility with the existing way of doing things, low complexity of use, possibility of testing, good visibility and communication and social approval of their reference group.

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