New Product Development Process: A Case Study of Apple
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This paper analyzes the process of New Product Development (NPD) in the context of Apple, focusing on their management competencies, technological developments, and strategic alliances.
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Running head: NEW PRODUCT DEVELOPMENT PROCESS NEW PRODUCT DEVELOPMENT PROCESS: A CASE STUDY OF APPLE Name of the Student: Name of the University: Author’s Note:
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1NEW PRODUCT DEVELOPMENT PROCESS As stated by Fuller (2016), the business enterprises in order stay competitive within the business markets of their operations needs to constantly upgrade the products or services offered through the effective integration of the ever-changing needs or the demands of the customers. Nunes, Pereira and Alves (2017) are of the viewpoint that the process of New Product Development (NPD) helps the business enterprises to effectively integrate customer needs, recent technologies, management competencies and others for the development of the kinds of products or services which in turn would enable the concerned enterprise to attain its strategic goals. In this paper, I would undertake a critical analysis of the process of NPD in theparticularcontextofthesameprocessfollowedbytheenterpriseAppleforthe development of new products or services. I am of the viewpoint that the business enterprises like Apple needs to take the help of different kinds of frameworks or models for the effective development of new kinds of products or services. For example, it is seen that the effective usage of different kinds of NPD frameworks helps the enterprises to effectively synchronise their management competencies, technological developments, results obtained from the market researches and others for the development of the kind of goods or services which will help them to attain their strategic objectives (Jha et al., 2016). However, in the majority of the cases it is seen that the enterprises fail to use any frameworks and this in turn leads to the failure of the NPD process followed by them or for that matter for the development of new products or services (Wowak et al., 2016). As a matter of fact, I believe that the major focus of these enterprises is not on the concept of innovation or the manner in which the products or services developed by them would be appreciated by the customers rather on the process of the development of products or services itself with complete disregard of the market trends, expectation of the customers and other aspects.
2NEW PRODUCT DEVELOPMENT PROCESS Figure 1: New Product Development framework followed by Apple Source:(Created by the Author) I would like to say that the NPD process used by the enterprise Apple is an exemplary one and the other business enterprises can take the lead from the concerned enterprise for the development of an NPD process. I personally believe the management competencies of the enterprise Apple, the manner in which technology is being used at the concerned enterprise for the development of new products, its strategic alliances with the other technology-based enterprises and the extensive research and development (R & D) activities undertaken by it had substantially improved the kind of NPD process used by it. For example, it is seen that the concerned enterprise undertakes adetailed market researchfor gaining an effective understanding of the requirements, demands or the expectations of the customers from the products or services which are being offered by it. More importantly, it is seen that the results which are being derived by the concerned enterprise from the market research is being integrated within the blueprint of the products or services that are being developed by it (Chuang, Morgan & Robson, 2015). Furthermore, the enterprise Apple is known to be one of Apple Technology Strategic Alliances Research and Development Management Competency
3NEW PRODUCT DEVELOPMENT PROCESS the most innovative enterprises of the entire world and this innovative approach of the concerned enterprise not only manifests itself within the spectrum of its organisational or workplace culture or the business model followed by it but also in the context of the products or services offered by it as well. As a matter of fact, it is seen that different kinds of technologiesare being used by the enterprise under discussion for the development of the kind of products or services which would satisfy the needs of its target market. In addition to these, it is seen that the management team of the concerned enterprise also has adequate competenciesto support the innovative products or services offered by it and also the differentstrategic alliancesthat the enterprise has supports the same. The resultant effect of this is the fact that the concerned enterprise through the active conglomeration of all these aspects have been able to develop the kind of products or services which had helped it to attain strategic objectives. There are various critical success factors which affect the success of the new products or services like product related factors and market related factors. For example, it is seen that the enterprise Apple takes the help of the process of standardisation to create the kind of products or services which are as per the standard quality and that too at the lowest possible price. In addition to this, it is seen that although there are numbers buyers and also the size of market is really large yet because of the high quality of products and services offered by Apple, it had been able to gain monopoly in the market. I would say that the new product or service development process used by Apple is almost similar to the ones used by the other enterprises like Microsoft and others. Furthermore, it had been seen that the contemporary enterprises are trying to improve the NPD process through the effective integration of the needs of the customers, use of new technological developments and others. To conclude, I learned that the process of NPD had become an integral one for the different modern-day business enterprises since it enables them to develop the kind of new
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4NEW PRODUCT DEVELOPMENT PROCESS products or services which in turn would help them to attain their strategic goals. However, for the formulation of an effective NPD or for that matter to develop new products or services,theenterprisesneedtotakeintoaccounttheirmanagementcompetencies, technological environment, strategic alliances, market researches and other aspects to ensure the success of the new products or services. These aspects of the process of NPD become apparent from the above discussion.
5NEW PRODUCT DEVELOPMENT PROCESS References Chuang, F. M., Morgan, R. E., & Robson, M. J. (2015). Customer and competitor insights, new product developmentcompetence,and new product creativity:differential, integrative,andsubstitutioneffects.Journalofproductinnovation management,32(2), 175-182. Fuller, G. W. (2016).New food product development: from concept to marketplace. CRC Press. Jha, S. K., Parulkar, I., Krishnan, R. T., & Dhanaraj, C. (2016). Developing new products in emerging markets.MIT Sloan Management Review,57(3), 55. Nunes, M. L., Pereira, A. C., & Alves, A. C. (2017). Smart products development approaches for Industry 4.0.Procedia Manufacturing,13, 1215-1222. Wowak, K. D., Craighead, C. W., Ketchen Jr, D. J., & Hult, G. T. M. (2016). Toward a “theoretical toolbox” for the supplier‐enabled fuzzy front end of the new product development process.Journal of Supply Chain Management,52(1), 66-81.