New product development is one important business activity which reflects to the changes of the current market condition as well as competition atlanta divorce attorneys business industry. Therefore, such monumental changes have given a direct effect to the commerce that forced companies to innovate their product even more intensely. Because of this, business companies must actively innovate to cut through the clutter of the complexity and difficulty of new product development function. According to Deborah, services may be thought as both product and service. Also, companies' new product development are made by the size of the industry in which it operates. (Reference) The purpose of this report was to look into Apple's new product development process by understand it before comparing with Crawford's process. On that comparison, a few of the steps will be determined and analysis through. Additionally, this report may give a recommendation on every aspect of the new product phases and which includes a knowledge of why and exactly how services fail so easily in almost all of the time.
The information found in this report was gathered utilizing the sources from the web and textbook. Therefore, the 9th edition of New Products Management textbook by Crawford was one of the primary references that provided the details of new product development phases that were used to use in this report.
Apple Inc. is a multinational company that sells gadgets such as the iPhone, iPod, iPad and MacBook. The co-founder Steve Jobs invented the first Apple Computer in the entire year 1976 in California. As time passed, Apple had been growing intensely because of its latest invention. Apple were able to establish majority of the marketplace share in the buyer electronics industry. Currently, Apple can be known as the major technology firm in global with an approximately $60 billion of gross annual revenue. (Apple, 2010)
Chart A simply shows the new product development process of APPLE MACKINTOSH. Apple's new product process phases primarily go with the idea generation. Many great ideas were generated based on the innovation of the employees. They always have a vision on what's another trend and that truly creates opportunity for them. According to Steve Jobs, Apple never relies on general market trends to invent a product that suits the marketplace demand. However, they create demand to the market for instance, individuals were queuing up for the new apple iphone 4 4 when it first released. (reference)
Ideas then are brought into conception phase that they will be evaluated and significantly picked to discover the best one. Otherwise Apple may continue steadily to develop the basic concepts to further the improvement. Innovation basically occurs in this phase because those raw ideas have to be crafted in the conception which is important that Apple gets a specific idea of what they are doing. (reference)
The third phase would be concept developing that involves taking basic concepts to develop in to the final blueprint for production. A blueprint is a finalized plan that is preparing to enter production. (reference)
In the manufacturing phase, specification adjustment must ensure all the merchandise are functional as planned before they are simply distributed. In some instances, there may be several technical issues on the product which will need to be fixed before it enters into packaging process. Additionally, Apple strictly emphasize on quality control on their products. It really is their top priority and their main mission to create solid quality gizmo to the finish user. Which has defined Apple in an excellent differentiation from other competitors. (reference)
After the completion of the product, it is then distribute in Apple stores globally. Apple do not really desire a lot of marketing effort to increase their revenue. It is the fact that individuals were queuing through to the day the merchandise is to launch. In some cases, the demand was higher than the supply and that caused supply shortage to Apple. (reference)
Feb 17, 2010 Amanda Dahl
Figure B: Crawford's new product development process
Both Apple and Crawford's new product development process are very different. Based on Figure B, Crawford identifies the first phase as opportunities however, not a particular product concept. It is suggested that opportunities originates from enough time to time changes of marketing plan, market demand and resources aspect such as discovering of a new material with many potential uses. (reference) Quite simply, opportunity identification is an initial strategic statement that furthers the introduction of the others phases. Apple may be different in this phase because it does not have any intention of using marketing research to look for opportunities. The company has got what it takes to regulate consumers' interest and releasing a fresh product feels like making a demand to the marketplace already. Apple at first begins with idea generation and new product ideas are visualized and refined. A systematic of new product ideas search should be adopted for each company otherwise it might be difficult to create ideas that work in the end concept generation is focused on creating a big volume of ideas. In addition, these phases can optimize the complexity and risky of concepts however it could also be very slow. Never the less, recruiting influence the company overall ability to take care of the new product development. Goals clarification and vision ensure that new product ideas will carry out well in the correct direction. However sometimes making new suggestions to solve problems is not a simple task because they could be costly to be done.
On phase two, concept generation, Crawford gather a pool of new ideas included from customer and generates a new one. Hence, it is process by choosing the best potential problems as the best opportunity. (Reference) Apple basically did the same thing which they screen all the fresh ideas and eliminates them at most to three. Hence, the best one will be chosen to check out the next thing. Apple strongly emphasize on new ideas to match using its company's vision and main objectives. Concept generation phase will work well if Apple included every technical feasibility to details, for instance the proposed applications and the identification of the application form target market respectively. All in all, new product development costs may be really expensive in the later stages therefore it is important that companies choose the only real concept that will become profitable.
Crawford on phase three concept, evaluation, is an in depth version of the new product concepts that based on how consumers perceive on it. It involves in wearing down the standards such as technical, marketing, and financial. Basically it gives a pretechnical analysis on the new ideas and accompanied by owning a concept testing to see if there are any potential demands from consumers. Ultimately, all of them are brought together in order to make a statistic, chart, and model for making decision of taking or leaving the concepts. If the idea was in an agreement to develop, the next phase would involve in planning the resources for this protocol. Apple in this phase is quite not the same as Crawford step because they don't involve customer on the product evaluation. Generally, they are really at ease their impressive production and this is due to their strong company vision. Not absolutely all company may become as successful as Apple therefore companies without counting on marketing research would simply rather just a risk for them if they don't have the capability to achieve what they are after.
Crawford's phase four is an implementing stage where in fact the product concept will need into business analysis stage before it goes into production. At this point, the analysis is all about the marketing plan, manufacturing costs, packaging, branding and other necessity. Hence, after passing the first three stages a concept may be discarded once marketing due to limited prospect of profitability or commercial success. Hence, the mass production will take place when the analysis is complete and it is sent through the distribution channels. In some cases, minor modifications can be adjusted to suits the demand of users nevertheless the product eventually will need them to decide if indeed they would accept or reject the idea. Apple emphasizes its manufacturing stage to a substantial level when it comes down to quality monitor because of its electronic device. Quality control is a part of the organization DNA plus they understand that everyone needs quality products without any questions. Apple is adding value to its customer perspective on the new product as well as to meet their needs and meet desired quality levels at lowest production costs. Additionally, companies can use quality function deployment (QFD) to build up and enhance their product concept.
The last stage is the launching of the prototype development where company starts making money. The plan has to be commercialized before making out sale from any distribution channels. According to Crawford, goals and objectives should be performed based on the merchandise innovation chart (PIC). Many companies have emphasized on the first four phases to lessen the escalation costs from the beginning of first stage. Commercialize basically involves in the marketing mix and targeting an appropriate timing to launch the new product. Apple claimed they can push their product easily without really relying much on the marketing effort. However, it's important to ensure that there are no threats on the level of investment and risk at this time. Also, a short marketing strategy for introducing the product to the market is equally necessary to be considered because it really helps to forward the brand and the product to the right place and people at the right time. In some instances, test marketing is needed to ensure the outcome of the introduction would run successfully. The involvement in the new product stages like employee, customer, and suppliers can make a difference as the rest. Company shouldn't take risk on faster product development because it may cost more than the orderly process. Apart of that, quality of production may be not achieved by the result of rushing a product. Majority new product fail due to the concept was not sufficient for example product was poorly designed, inappropriate positioned in market, expensive, or bad marketing. Such potential problems might occur in the later stages therefore you will see delaying and redesigning which is a waste of money and time.
Apple has been so successful before few years because of its creative way of inventing its product and running the business. The brand consists of great design and style and the business uses great strategy and ground breaking marketing to attract customers. The most recent apple iphone 4 4 could be couple of years ahead of all its competitors. It is an amazing product in mobile phone category and they have friendly user interface along with elegant design. Apple has come out something that is far beyond a regular smart phone because it understands that innovation goes beyond the product itself. (Breillatt, 2008) Apple's product development process can only be characterized as innovation-driven. Therefore, innovation can be an important asset for Apple to stay in the market. Steve Jobs, the principle designer of Apple was the individual who makes the best decisions. In terms of leadership, Steve Jobs vision is area of the Apple mackintosh asset as well. He spends the majority of his time monitoring the development process merely to be ensured that the final product will come out exactly like he planned. Apple sells about 30 major products unlike other companies with similar revenues sell hundreds of products. Therefore, Apple gets the benefit of concentrating on perfection in every major and minor feature of its product (Breillatt, 2008). Apple generally operates quietly and hardly speaks to the general public about future products. However, information was sometimes leak to the market intentionally in order to observe how the market reacts (Breillatt, 2008). iPad did not have its official announcement saying that the actual developing day of these devices before finishing day when it premiered. By enough time it launched, it was popular to the marketplace as well.
Apple came out with much effort on refining the ideas to be able to ensure the applications and products can reach the market perfectly. For instance, Apple hardware designer will start producing several different pixel-perfect mock-ups for these devices screen. Then, these are reduced to the very least that allows the team to invest a while to refine those to the perfect last one. As a matter of fact, the corporate did a good job to its screen pixel that can show fine information on whatever presented from the screen. It actually allows customers release a from the unnecessary vision ambiguity. According to Helen Walters, there are always a paired design meeting that held every week for Apple's engineer and designer teams. They also organize brainstorm meeting that involves in thinking without any rules constraint and therefore such approach is to resolve problems or to enhance existing products. Another you might be the production meeting that is about how to implement structure around the progressive ideas. They are considered two crucial meetings for Apple to successfully develop any application which it is a part of their corporate DNA. (reference) According to Steve Jobs, Apple never did its market research because he claimed that they aim to create demand to the market. Quite simply, Apple never intended to survey people on what is another booming trend however the brand will launch products that surprised everyone. This is the sort of focus allows those to evolves themselves from an considerable level to perfection.
The insufficient customer and supplier involvement in Apple's new development process will be a success factor to them. the business is well known for ground-breaking innovation that could be beyond the imagination of these groups, but it might help make the process more efficient if they were allowed to enter the discussion in the first stages of product development.
In the first quarter of 2010, Apple reported revenues of $13. 5 billion. While the company does not specify how a lot of these revenues result from new products, it does declare that 40% of total net sales were attributable to the iPhone, that was first introduced 3 years ago and has been upgraded to a newer version annually since then. And finally, the iPad is proof for the companys ability to produce and enter new markets. Today it is worth $169B (Dixon, 2009).
October 8, 2010 You Can't Innovate Like Apple
Carrying out fresh suggestions to a stage of developing the production takes a good organizational structure in most cases. Leadership and team effort influence the effectiveness and efficiency of how new products are introduced to the market. Basically meetings and brainstorming of ideas will response to the viable solutions for customers. Again, new product must be optimized in the right direction and guidance based on the vision and goals of companies. The coordination of internal structure like the engineering, manufacturing, and marketing plans in the new product development process is the backbone of the whole process to be success. Furthermore, the right people for the right job will determine the new product concept outcome. Market testing may be high on costs nevertheless they are always small in comparison with the costs of making a significant mistake. Companies must constantly involve in developing services and services to improve their productivity predicated on experience. For example, company like Apple never stop innovates in new ideas. It is recommended for large corporation to consider cross-functional teams to skip a few steps in the new product development process which allows cutting down a while. The core of all failures in new product could be the cause by poor management and planning. Protocol must be studied in take into account new product development projects and it is very important to the bigger businesses with running several new product projects at exactly the same time. On top of that the five basic resources like financial, human resource, raw material, technology and time supplies the accessibility and the capability of undertaking the project. Companies that based on Crawford new product development process model should make an effort to follow every step since when these steps are accomplished, decision can be produced again whether to keep or discontinue the theory. Therefore, to lower these risks, companies might need to adopt their own systematic new product development process for the sustainability of the growth of services. Finally, company should learn how to invest its time and money to obtain their tasks in the development process to completed and therefore they can estimate their investment along the way. Hence, great management of new product development process is everything as an asset to an organization.
What Will be the Four Basic Phases of the Innovative Process?
By Shaun Fowler, eHow Contributor
updated: April 11, 2011
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