Product Design and Development

Most enterprises are continuously developing new products and services. However, few products are truly new. Most new products are variations and improvements on already existing ones.

Innovations normally take time before they are formed into a final product or service offering. Usually an idea is developed, refined, and tested over time before a working model is produced. The development of an original idea into a marketable product requires a systematic, scientific study involving hard work and attention to detail. Product specifications must be developed to ensure that items can be produced cost-effectively and be of the desired quality.

Most organizations have a research and development (R&D) department that study new products and new processes of producing them. Strategically managed firms cannot rely on copying the innovations of others, nor can they afford to produce the same product or service in the same way for a long period of time if the firm is to be competitive.