Each business should have one major focus to be able to develop and satisfy the market needs. Obviously this focus is the customer. It does not matter who the customer is defined as he/she has to be defined for each company in a different way. The main thing is that all efforts are addressed to the customer. Every company sells products or services to customers so from a quality assurance point of view it is crucial to develop products in reference to market needs or customer needs respectively. This is the focus for the assignment. A general guideline for an efficient product development process should be created with the overall objective – customer centric product development combined with an improved internal workflow.
Anderson et al (2006, p. 1) states that customer value proposition is one of the most widely used terms in business in recent years. So it is important that a company is able to help customers understand the superior value of the products or service offered. Under pressure to keep costs down, customers may only look at the price and so it is important to think about the customer value proposition but also the comparison to the competitors of a specific market environment. This should flow into this assignment as well. Another problem of product development is that in many companies it is rather influenced by opinions of different sales people then by facts and figures. According Annacchino (2007, p. 101) a lot of companies tend to make a mistake at the product definition step, so that the customer is not really involved in the product development process. In reference to the definition of customer-defined needs there are different ways:
• A company can use direct customer surveys to solicit feedback and to obtain information in a direct manner.
• Another way is a focused group discussion which allows multiple-person input and prompted discussion to generate ideas.
• A third possibility is a suggestion system and communication platform for customers and stakeholders.
Table of Contents
- 1. Introduction
- 2. Situation analysis in reference to product development
- 3. Improvement ideas in reference to product development
- 3.1. Product development committee
- 3.2. Customer requirements
- 3.3. Requirement specification
- 3.4. Competitor analysis
- 3.5. Kick-off-Meeting - KOM
- 3.6. Project management
- 3.7. FMEA
- 4. Implementation and maintenance of the new process
Objectives and Key Themes
The main objective of this work is to create a guideline for customer-centric product development, improving internal workflow efficiency. It aims to shift focus from internal opinions to concrete customer needs and market data, creating a more efficient and effective product development process.
- Customer-centric product development
- Efficient internal processes in product development
- Importance of market research and customer feedback
- Mitigation of typical product development failures
- Strategic product selection and prioritization
Chapter Summaries
1. Introduction: This introductory chapter establishes the core concept of customer-centric product development as the primary focus for business success. It emphasizes the critical role of aligning product development with market needs and customer demands, setting the stage for a more efficient product development process. The chapter highlights the importance of understanding customer value propositions and avoiding pitfalls like relying solely on internal opinions rather than data-driven insights.
2. Situation analysis in reference to product development: This chapter analyzes common shortcomings in product development processes, particularly the insufficient involvement of customers in the early stages. It explores various methods for gathering customer requirements, such as direct surveys, focus groups, suggestion systems, and complaint analysis. The chapter emphasizes the risks associated with neglecting thorough market research and improper timing of product launches, underscoring the significance of a customer-oriented approach for successful product development. It highlights the often short-sighted approach of many companies that prioritize sales requests over data-backed planning.
3. Improvement ideas in reference to product development: This chapter proposes a practical framework for customer-centric product development, emphasizing the importance of both theoretical planning and practical implementation. It introduces the concept of a product development committee, involving various departments to align potential products with the company's strategy. The crucial role of extensive customer requirement gathering is highlighted, explaining how this deep understanding reduces development loops and increases efficiency. The chapter details the aspects to be considered when defining customer requirements such as target group, MUST-have vs. NICE-to-have requirements, and target pricing, emphasizing the importance of a thorough analysis to minimize the risk of failure.
4. Implementation and maintenance of the new process: (Note: Content for this chapter was not provided in the original text.)
Keywords
Customer-centric product development, market research, customer requirements, efficient internal processes, product development committee, product lifecycle management, competitor analysis, customer value proposition, market needs, time to market.
Frequently Asked Questions: Guideline for Customer-Centric Product Development
What is the main objective of this guideline?
The primary goal is to establish a customer-centric product development process, improving internal workflow efficiency and shifting focus from internal opinions to concrete customer needs and market data.
What are the key themes explored in this guideline?
Key themes include customer-centric product development, efficient internal processes, the importance of market research and customer feedback, mitigating product development failures, and strategic product selection and prioritization.
What are the chapters covered in this guideline?
The guideline covers an introduction to customer-centric product development, a situation analysis of current product development processes, improvement ideas for implementing a customer-centric approach, and a plan for implementing and maintaining the new process (though content for the latter chapter was not available in the original text).
How does the guideline address situation analysis in product development?
The situation analysis chapter identifies common flaws in product development, particularly the insufficient involvement of customers in the early stages. It explores methods for gathering customer requirements (surveys, focus groups, etc.) and emphasizes the risks of neglecting market research and improper product launches.
What improvement ideas are proposed for product development?
The improvement ideas chapter proposes a framework for customer-centric development, including the establishment of a product development committee, thorough customer requirement gathering, defining requirements (MUST-have vs. NICE-to-have), and target pricing analysis to minimize failure risk.
What specific methods for gathering customer requirements are mentioned?
The guideline suggests utilizing direct surveys, focus groups, suggestion systems, and complaint analysis to gather valuable customer requirements.
What is the role of the product development committee?
The product development committee is designed to involve various departments to align potential products with the company's overall strategy.
What is the importance of customer value proposition?
Understanding the customer value proposition is crucial for aligning products with market needs and customer demands, ensuring efficient and effective product development.
What are the keywords associated with this guideline?
Key terms include customer-centric product development, market research, customer requirements, efficient internal processes, product development committee, product lifecycle management, competitor analysis, customer value proposition, market needs, and time to market.
What is the overall approach advocated by this guideline?
The guideline strongly advocates for a data-driven, customer-centric approach to product development, prioritizing market research and customer feedback over internal opinions.
- Quote paper
- Mag.(FH) Sasha Petschnig (Author), 2008, Customer centric product development, Munich, GRIN Verlag, https://www.grin.com/document/112403
