Product Management & Information Systems

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Product Management & Information Systems

Technology is moving at a pace, which has never been witnessed before, as new technological advancements are announced one after the other. The technological advancements have led to digitized environment and societies such that every aspect or tasks within the broader society are an incorporation of digital and physical products. In addition, digitization of tasks has increased the levels of productivity within organizations leading to high standards and rates of achievement of the set goals and objectives. These technological advancements can be attributed to the presence of the internet, which has provided individuals from around the world with the perfect platform for driving and displaying their innovations to the world. In addition, the internet has been transformed into an online platform where the sale and purchase of both physical goods occurs with utmost ease and efficiency. Digital goods could be described as goods which are can only be purchased or sold, stored in their electronic formats, Whereas physical goods are touchable and the purchase of which is evidenced by the physical presence of such goods (Maceli, 2011).

The world is witnessing new developments of digital products necessitated by the immense growth and potential of the digital markets. New product development from a digital perspective could be described as the processes involved in the development or renewal of old products, which were rendered as obsolete by the pace at which the digital market is evolving hence prompting new innovative products for these markets. A typical New Product Development Process (NPD) is overseen through the command and control structures by the developers of the new product. Effectiveness of new product development is determined by numerous factors such as brand power of the entity, financial resources, marketing skills and organizational structures. The New Product Development Process is usually set in the outlined distinct ways:

(1). Generation of the product idea from the employees, consumers, and competitors

(2). Idea screening is regarded as vital in the evaluation of the best ideas for the new products within the market.

(3). Developing the concept involves the development of testing product or prototype for evaluation of its strengths and weaknesses. Prototypes are essential for evaluating the success of the concept of the new product and if it is relevant for the market.

(4). Costs evaluation and financial analysis to attain the costs of production by break-even analysis to find viability of the new product identified. This is an important phase to enable the formation of a budget for the process of developing or creating the new product and other associative costs.

(5). Product creation and planning of entry through marketing plan or marketing mix

(6). Market testing through promotions and samples to the new market

(7). Commercialization of the production by actual entry into the market through any identified favorable marketing strategies.

The whole process of product development requires precise and accuracy in collection and evaluation of information obtained to prevent any deviations from the set goals and objectives by the developers of the new products. Information is a powerful tool in that it has the potency to create great products or result in cost overruns after the development of irrelevant and uncompetitive products within the market. On the other hand, new products are vital for maintaining relevance of the entity within the market due to either fierce competition from other market players or obsolescence of the existing products of the entity. The pace of product development within the digital markets is prompting entities within this market to churn out new products at speeds of light, which are at times costly for entities, which do not have adequate information about the market, and the products, which they are in processes of developing.

The new product developed is launched in the relevant market with an aim of capturing specific market segments. In addition, without adequate information about the expected performance and receptions of the new product developed this might result in numerous costs, which were not forecasted by the entity leading to failure of market entry and the overall product (Cerf, 2011).

Product development results in numerous effects such as the provision of new avenues for completing tasks provided by the digital products. In addition, this also results in other competitors developing either similar products or better products thus fueling the drive for developing new products, which are superior in quality and are able to meet consumer needs and capture the attention of consumers. Competitive advantage also results because of the presence of better products in comparison to the existing products and other competitor products. Competition within the digital market is the highlight of operations within these markets due to the pace of product development. New product development varies in terms of the target market. The target market may include current a market of operation or a new identified market whose entry is necessitated by developing a new product. Hence, these two kinds of perspectives necessitate the formulation of distinct strategies for entry within the identified markets (Cerf, 2011). With the pace of product development, it is paramount for entities within the digital markets to evaluate constantly their products and other products by their competitors. Products development within the digital world needs constant review of the competitor products and the new products.

Reference

Cerf, V. (2011). “Open Source, Smart Grid, and Mobile Apps.” IEEE Internet Computing, 15(1), 96.

Maceli, K. (2011). “Changes In The Development Process Of Mobile Phone Applications Bring Opportunities For Developers And More Options To Consumers” Journal of Business Case Studies, 7(3), 31-36.