- New product design and development is essential for business growth and competitive advantage.
- The design, development, launch and sale of new products enables a business to grow and to attain a competitive advantage.
New product design and development
- Two different approaches determine product design and development:
- consumer preferences based on market research
- changes and innovations in technology.
- Apple’s success is attributed to its control over both software and hardware design and development.
- Factors to consider in product design: quality, supply chain management, output capacity, and cost.
- Quality is crucial in market-oriented production to meet customer demands.
Service design and development
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Service design considers customer needs and interactions, focusing on explicit (tangible) and implicit (intangible) aspects.
- Explicit service includes the application of time, expertise, skill, and effort
- implicit service relates to the psychological well-being of customers. (the feeling of being looked after)
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Services using goods
- Some services may require additional goods for delivery, which must be considered in the design process.
- e.g. a surgeon performing surgery will require swabs, bandages, etc.
- Technological breakthroughs can create new service opportunities, as seen in laser technology applications in various cosmetic procedures.
- Some services may require additional goods for delivery, which must be considered in the design process.