Product development is the process of figuring out what your product should do and how it will work. This process involves prototypes, mock-ups, playing make-believe, and any other useful technique that will help you find the answers you need.
When you are developing a new product, don’t aim for perfection — aim for good enough to sell. You can continue developing it after you get feedback from customers. If you try to make it too perfect too soon, you risk building something that customers don’t need and won’t buy.
Product development happens a lot during startup and then continues as an ongoing concern.
Product development is a cross-functional activity led by the founders, or company leadership, which we call the Executive Department because it is both essential and involves all the departments.
How each department is involved
Personnel – Product development may require experts in various fields, or experienced engineers, or artists, for example. Someone needs to find and recruit the right people to be in the product development team.
Information – Product development benefits from market research to understand what is already out there, what problems people still have, and other information about the environment in which the product would be released, such as laws or regulations.
Revenue – Interview customers to collect feedback on what features are missing, what features are not working as expected, what features are confusing, and what features are not being used.
Operations – Product development is an iterative process. Someone needs to keep everyone on the team informed and working together towards the goal, track what is learned from each iteration, remove obstacles, and monitor progress.
Technology – Develop and test the product or changes to the product, first in prototype form and then progressing to better and better implementations.
Logistics – Order parts and supplies as necessary. Purchase licenses to any required software or online services. Find and contract with freelancers or other vendors who might be needed to develop the product.
Finance – Track expenses, project further product development expenses, and project financial results once the product is released based on revenue forecasts and production expense forecasts.
Compass
After product development, continue to create a business plan.
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