BC Business
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Developing a new product? Open the kimono and let the world see it. New product or service development is the basis of almost every start-up or diversification strategy in existence today. The standard product development process is to do (perhaps) some market research into what customers say they want, hire a gang of developers to build it, release it in the market and mount an aggressive marketing campaign to get customers to buy it.
New product or service development is the basis of almost every start-up or diversification strategy in existence today.
The standard product development process is to do (perhaps) some market research into what customers say they want, hire a gang of developers to build it, release it in the market and mount an aggressive marketing campaign to get customers to buy it.
At a smaller level, it’s often about spending much effort in engineering the perfect product so that when you launch it takes the market by storm. Think the iPhone.
Problem is that these days, that “right way” to do things rarely works, a rare winner like the iPhone notwithstanding.
People have so many options today that a business with a new product can get lost in the noise. Sure, your product or service can be the greatest thing since sliced bread but unless enough people buy it, that’s meaningless.
People usually buy what they know, not what’s best for them. So, even though your product might be wonderful, it might still lay an egg in the market.
Life In The Raw
There’s now a new method of product and service development that might help developers avoid all that heartache. Called by various names such as test driven development or minimum viable product, the methodology is basically about launching while still raw and unformed.
With this method, developers test the market early by releasing a product with the minimum number of features required to indicate the product’s potential. They ensure that the early adopters – that 2.5 percent of a market that jumps on hot new products – get a good and tempting sampling of it.
Sometimes, the product or service is completely naked in that it doesn’t have any features at all. The early adopters are merely asked if they like a concept, and to submit their thoughts on what they’d like to see.
The thinking behind this method is that these early adopters are enthusiastically involved with their products. They play with them, examine them, review them, discuss them with others, improve upon them, and report back how they can be better.
If these people don’t “buy” it, then the developer tries another feature, sends it out, assesses the market appetite, and if need be, does it again. After much iteration they may realize that the product is going nowhere. Or they may arrive at something that’s a winner.
By testing a concept among leaders in a market before they build it, entrepreneurs can avoid wasteful expenditure and have a better chance of success.
Does this sound like a logical method to commercialize innovation? Or does it sound kind of … well … sluttish? I’d like to hear your experiences.