Product/Service Development Processes

This post sets out many of the key considerations, steps and processes involved in developing a new product, or a new service that entails some development work.

The process starts with an idea or concept that needs to be tested against the market to see if it either (inter alia)

• meets a need such as an improvement in efficiencies, a positive environmental impact or a benefit to the underprivileged or previously disadvantaged or

• will result in increased volumes via a new or different channel, a better yield or entry barrier removal or

• it increases profitability through reduced costs or wastage (better yields) or better margins.

A detailed project plan needs to be set out containing all the steps mentioned herein, with assigned project champion, change manager, task responsibilities and due dates, reflecting task dependencies, and key milestones that become decision points. Actual progress must be measured, recorded and evaluated against this plan, with regular progress review meetings to ensure all are on the same page.

The details of the product or service design need to be set out in conceptual, functional, and technical specifications, that also include technology and interfacing and integrations considerations as well as regulatory compliance/certification requirements and communications included and or around the product (such as product launch and sales, distribution and marketing plans) and what agreements need to be defined to cover all aspects of this new product or service.

The value proposition (or business case) needs to be defined to ensure that it is a truly viable pursuit, and this must be viewed from the perspectives of the manufacturer, supplier, service deliverer, customer and after sales service/maintainer, etc. and must include a market and competitor analysis, with relevant financial data. This step requires properly documented and signed approvals in terms of an entity’s corporate governance, investment policy and defined level or limits of authority, reserved matters or approvals frameworks.

Once the design has been defined, a working prototype needs to be created, and it needs to be tested to ensure that it will meet expectations. This will require definition and approval of a product or service data pack that contains inter alia, an approved bill of materials, approved suppliers and manufacturers of components therein, with technical data sheets with specifications that need to be met, as well as detailed quality assurance, quality control, inspection, sampling, assembly, production and installation work instructions and materials for training, testing and after sales purposes.

The expectations need to be documented and then tested against via several iterations of functional, technical, and stress tests (including accuracy, reliability, repeatability, volume and value, concurrent and sequential, wet and dry tests, as applicable) before being passed internally by some fully documented quality control/assurance process.

The product or service then needs to be costed with pricing models that match the various business relationships and agreements that have been defined, and these need to be tested to ensure completeness, validity and accuracy (fully documented).

An approved sample then goes through user acceptance testing, which should include in situ tests, with documented expected and actual results, along with user experience surveys for suggested improvements.

Once the fully tested and improved sample is signed off after the aforementioned iterative processes, we have a tested proof of concept, which is then encapsulated in a frozen design before it is finally costed with updated pricing models incorporating all requirements, plans and preparations for volume roll-out (full supply chain, lead times, MOQs, safety stocks, consumables, SLA’s, storage, capability and capacity checks, handling, packaging and branding requirements, staffing, training, PPE, all equipment, transport, reporting, IT, invoicing, control and payment systems, engineering change control process, after sales service and support, etc.).

It is then is produced and made available to the consumers per the launch and marketing plans, ensuring all relationships and agreements are in place timeously to ensure the best first and ongoing impressions in the market.