Over the first fiscal quarter of 2018, Apple accelerated investments in research and development operations spending more than $3.4 billion on new hires and initiatives which will keep the company competitive in a fast-paced tech market.
Product development is like the gasoline that keeps the wheels rolling. But what drives companies to spend valuable resources such as time, money, human capital, etc. on new product development? And why is it so important?
Here are five reasons:
Value for customers
The primary reason for any new product development is to provide value to its customers. The increasing demands of customers for innovation & new technology calls for the need to develop new or existing products. Otherwise, there is no reason to pour in huge amounts of money in the first place.
Keeping up with the competition
Staying ahead of the competition should always be the primary goal for any business. And increased competition is one of the major reasons leading to go for new products development. New products give us a competitive advantage over our rivals. Every firm struggles to fulfill and retain consumers by offering exceptional products. To offer more competitive advantage over the other and to satisfy consumer needs more effectively and efficiently, the product innovation seems to be needed.
Today’s market is more dynamic as compared to the past; it keeps on changing due to the wide variety of customer needs, all thanks to increased literacy rate, globalized market, heavy competition, and availability of a number of substitute. Consumers are constantly evolving which means their tastes and preferences change with them. It is the changing consumer behavior that drives the innovation and development of products. Plus, it also counters seasonal fluctuations.
Just as consumer trends drive new products, advances in technology drives companies to invest in new products. If your company has not upgraded its technology arsenal for ten years, count yourself to be at the last one in the queue within a few years.
Reputation and goodwill
Building image and reputation as a dynamic innovation and creative firm boosts a company’s legacy. The new product development is approached. Company desires to convince the market that it works hard to meet customer’s expectations. In fact, company developing new products frequently has more reputation and can easily attract customers.
Industrial design is a very crucial part of the entire new product development process. We are aware of the fact that industrial design develops aspects of a product that create emotional connections with the user. It integrates all aspects of form, fit, and function, hence optimizing them to create the best possible user experience. Industrial design’s role in product development process is to establish the design language of a product, as well as the corporate branding and identity.
How successfully a company is able to carry out development or modification, incorporating the ergonomics aspect, can often determine the success of a product in the market. Firms that leave industrial design to the end of the engineering lifecycle, or out completely will struggle to find success in consumer-driven markets.