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Outsourcing New Product Development

Outsourcing New Product Development: Why is it the new trend and what can it do for companies?

Companies and manufacturers across all industries partake in new product development once at the least through their lifecycle of operations. If conceptualized, planned, developed, and launched strategically, the new product development process can lead to significant growth and success for the company. However, the product development process is neither easy nor short-term. Due to the amount of cost, effort, time, manpower, and skill that is required through the process, companies may outsource the process.

These outsourcing services can either handle the entire new product development process or take control of a certain part of the manufacturing process. Certain more specific activities, such as software development, or engineering skills, may not be readily procured internally, in which case, outsourcing becomes the most favorable option. For instance, in the automotive industry, some key players outsource up to 75% of the product development of a new vehicle. Outsourcing helps companies reduce costs, effort, and improve time-to-market substantially. In this article, new product development strategy experts at Infiniti discuss the types, benefits, and challenges of outsourcing.

Deciding to Outsource

The new product development process is long-drawn and requires highly efficient strategizing to be successful. Through this process, the company must ask a set of crucial questions before deciding, so they may be aware of their choices and decisions. In the case of outsourcing, the question to be asked is, “Who will lead the new product development strategy?” While companies may be equipped in terms of finance, manpower, and skill, handling multiple projects simultaneously can be detrimental to current and developing projects. At this point, choosing to outsource is the best option.

New product development is a difficult process and requires brilliant strategic planning. Speak to our experts to learn more about Infiniti’s new product development experts.

Categories of Outsourcing

Companies may choose to outsource the entire product development process or a certain set of functions. The outsourcing process can be divided into the following four categories, as per the functions that are provided:

  • Professional Outsourcing: Outsourcing functions such as legal, accounting, purchasing, and administrative jobs fall under this category.
  • IT Outsourcing: Functions relating to software or technological development are considered under IT outsourcing.
  • Manufacturing Outsourcing: This involves any part of the manufacturing process, be it the entire product, or a certain section of it.
  • Project Outsourcing: This includes the outsourcing of the entire project, such as outsourcing the whole product development process, to the point that it needs to be launched.

The Benefits of Outsourcing New Product Development

Outsourcing is used widely due to the various benefits it offers. When it comes to new product development, these benefits can be crucial to the success of the newly developed product. Five of these benefits are discussed below:

Lower Costs

Outsourcing most often results in quicker, more efficient results due to the dedicated resources and heightened focus, as compared to in-house product development. Additionally, outsourcing services save the cost of hiring temporary or permanent employees for the process of new product development. Many companies outsource to countries with substantially lower labor costs. These various factors combine to reduce costs by a large margin.

Workload Distribution

While in-house permanent employees would be ideal for producing a new product in many cases, the workload may be too high. However, in the case of outsourcing, current employees can focus on maintenance of existing products, while other professionals focus on new product development. This allows for efficiency and perfection across the board without losing quality due to quantity.

Innovation

As professionals, engineers, and other skilled employees work in the same space over time; their ability to ideate something radically different may be compromised. Outsourcing allows for the addition of other experts in the same field, to view the product, strategy, and development process in a different and unique light. Combined suggestions may lead to a product that is better than the original idea.

Expertise

In certain cases, the expertise required for a process may not be within the skill set of current employees. Guidance on engineering something different or manufacturing a new product type can help successfully deliver a product with the right expertise. With outsourcing, it is possible to acquire expert guidance through the process without investing in a new team of employees solely  to develop a new product.

Time Management

Outsourcing service providers have dedicated resources for the product that is being developed. Additionally, one team of employees attempting to maintain current products and developing new ones will increase the time to market. However, outsourcing reduces time-to-market and, in turn, leads to higher profits, faster returns, and proper maintenance of the systems already in place.

Outsourcing can be highly beneficial for many companies. Get more information to gain more comprehensive insights into the benefits of outsourcing.

Challenges of Outsourcing

Outsourcing is highly beneficial for the process of new product development. However, there are certain challenges of outsourcing. More particularly, certain details that companies must keep a note of when they choose to outsource. The following are three major challenges of outsourcing:

  • Control:

When outsourcing major functions such as manufacturing, it is crucial to ensure that quality is maintained. Clarifying the amount of control the company has over the entire process and being adequately involved in the process to ensure quality control is a major step towards avoiding losses and poor-quality products.

  • Communication:

As is the case with all business partnerships, clear communication is exceptionally crucial. Having clear project guidelines and continuous communication through the process can help reduce challenges, losses, and time-to-market.

  • Resources:

All companies must ensure that they are outsourcing to a provider who has the ideal equipment, skillset, culture, and manpower to provide the best results. As the new product development process is carried out, issues with machinery or expertise can take a toll on the entire process and the company, causing significant losses.

While it is highly beneficial, outsourcing can be a challenging step forward. Request a free proposal to strategically approach and develop the ideal new product development strategy.

market research

3 Ways Market Research can Help Build a Flawless Product Strategy

Most product failures and lack of customer adoption occur due to the lack of accurate data and research about the product, market, and the target consumers. This is a consequent effect of building a product that customers do not need or does not meet customer expectations. An effective market research strategy before product development can help businesses early in the product lifecycle to test value propositions and identify ideal customer segments, and also to hone the product’s usability and branding. A product strategy that is undertaken on the basis of adequate market research will play a key role in avoiding costly mistakes. Market research can also assist businesses in their product strategy by evaluating and identifying growth opportunities. Some of the key areas where a market research engagement can help in building an effective product strategy includes:

  • Differentiating the product from others in the market
  • Identifying how the product can solve consumer problems
  • Understanding how competitors address customer needs

In this article, experts at Infiniti provide a detailed account of how a market research study can benefit businesses to effectively formulate their product strategy.

Market research supports the creation of a definitive product strategy, helping exceed business targets. Request a free proposal to know more about how our market research solutions can help your business.

How market research can help in building a product strategy

market researchUnderstand consumer needs

An ideal product strategy must lay an increased emphasis on the needs of customers in the target market. Market research plays an instrumental role in identifying and analyzing these needs. This knowledge allows understanding the underlying customer preferences and the impact of the product strategy on the business. Products can then be customized to accurately meet the customers’ needs.

Identify market entry opportunities

Market research in product strategy can be used to evaluate the market entry prospects of a business. Whether a business is interested in markets with high growth rates, or a mature market that needs innovation to revitalize growth, research will help determine which market is a better fit. When entering a new market is vital to look beyond just market analysis and ascertain what the target consumers actually want. Market research study is one of the best ways to get solving this challenge while developing a product strategy.

Not sure on choosing the right product strategy for your business? Infiniti’s market research engagement can help. With data and analysis covering several industries in 100 countries globally, we help develop an ideal product strategy by analyzing key markets for entry, competitive analysis, surveying consumers, and identifying underlying consumer trends.

Evaluate competitors

Understanding competitor offerings is essential for businesses to differentiate their products from their rivals. The ability to grab customers’ attention as quickly as possible determines how successfully a business can compete in the market. Furthermore, effectively communicating how the business’s products are different for the better gives an added competitive advantage. Using market research brands can understand their top competitors in different product categories and also gain comprehensive insights on how concentrated the market is.

Learn more about Infiniti’s market research solutions.

Lean product development

How Lean Product Development Helps Improve Your Bottom Line

What is lean product development?

‘Lean’ refers to any process improvement that substantially and sustainably improves the output of your system. Lean product development involves increasing the focus on using lean to meet the need for innovative solutions in the manufacture of a product. Lean principles are used in lean product development to meet the rising challenges in product development. Some of the key issues that a lean product development process seeks to address include:

  • Long development cycle times
  • High costs of development
  • Need for innovative solutions
  • Rising production costs
  • Redevelopment cycles

80% of business failures can be attributed to how products are developed. Request a free proposal to learn we can help you strategize for an optimal product development process.

Steps in an effective lean product development process

lean product developmentLean product development process has been traditionally applied in manufacturing environments. However, lean methods can be applied to any industry, because all businesses benefit from cycle time improvements, increased productivity, and cost savings. Here are the key steps involved in an effective lean product development process:

Specify value for customers

The success and sustainability of a lean product development largely depend on the value that is being created for the customers. Before the actual product development process, manufacturers must look at the existing market and work backwards to ensure that the product being produced will attract the target customers and induce them to make a purchase. This step will allow businesses to invest in winning products even before its production begins.

Businesses that place cost reductions ahead of value creation while implementing lean principles often see their lean efforts fall flat. Get in touch with our experts for more insights on lean product development.

Identify value streams

Product development has a major impact on a company’s overall ecosystem. For products to be brought to the market successfully, it is essential to think end-to-end and ensure that all the employees are clear on the job roles assigned to them. Processes in organizations run smoothly when manufacturers, engineers, marketers, and the sales team know their role in the value stream. Often, during traditional product development cycle, the numerous communication errors due to hand-offs between departments leave little room for improvement. In the case of lean product development, the different stakeholders are united and in sync with one another’s processes from day one.

Ensure faster flow in the value streams

A lean company always aims at ensuring a faster flow of processes and value streams. This consequently ensures that customers are served faster, lead times are shorter, and improved product quality and flexibility. This would also eventually result in lower product cost.

Respond to customer pull

Gaining a clear understanding of customer pull is vital to make product development flow faster. Pull refers to customer demand. Eliminating wastes and responding to customer demand effectively would also create a positive customer experience by allowing time to work on things that create more value.

Learn more about how to adopt lean production principles at your organization

product launch strategy

Secrets Behind Successful Product Launches: A Weekly Round-Up of Popular Articles on New Product Launch Strategy

LONDON: Infiniti Research, a leading market research solutions provider, has announced the release of their new storyboard series on how a product launch strategy helps businesses to successfully launch a new product in the market and gain maximum traction from customers.

The market space, today, is far more competitive than it used to be a decade ago. Millions of new products are being introduced daily in the market. Unfortunately, many companies still spend millions of dollars on product development stages and ignore the most important process, i.e. the product launch. Consequently, they end up with product failures and high R&D expenses. In the wake of such developments, savvy companies have realized that a product launch strategy is inevitable for businesses if they are aiming to stay at the top of their game.

With over 15 years of experience, Infiniti Research, has helped many organizations to avoid the common pitfalls of product launches and develop a successful product launch strategy. Below, we’ve listed out some of the success stories that highlight how our product launch strategy has helped companies to gain a leading edge in today’s competitive marketplace.

Developing a product launch strategy could be challenging. With years of expertise, we at Infiniti Research have mastered the art of helping our clients with tailored solutions to suit their market needs. Request a free brochure to know more about our services portfolio.

#1: How a product launch strategy helped a pharmaceutical company to successfully launch its new oncology drug?

With almost 80% of the product launches failing to make an impression in the market, it’s not very easy for businesses to attract customers towards their new product. Are you facing similar challenges? If so, take a look at our latest success story where a pharmaceutical company encountered similar challenges and approached Infiniti. Our experts adopted a comprehensive four-phase approach to help the client develop a product launch strategy. The approach successfully helped the client to gain traction from target customers and ensured their product’s commercial success. Want to know more, here is the complete story.

Infiniti’s New Product Launch Strategy Helped a Pharmaceutical Company to Successfully Launch their New Oncology Drug in a Highly Competitive Market

#2: Infiniti’s product launch strategy helped a CPG company to successfully develop new products targeting millennial customers

With the millennial group becoming the generation with more buying power in the European market, it’s becoming more important than ever for marketers to understand what makes millennials willing to open up their digital wallets. Also, to tap the enormous purchasing power of millennials, companies needs to shift their product development techniques and match the preferences of these young consumers. Don’t you agree? If so, find out how a CPG company based out of Europe leveraged Infiniti’s expertise to conceptualize, produce, and release a series of products for millennial consumers. Furthermore, Infiniti’s solution helped them to strengthen their reputation as a resilient and modern food company. Read the complete story here.

New Product Development Strategy: How we Helped a Leading CPG Company to Develop New Products for Connecting with Millennial Consumers

#3: Planning a product launch? Have a look at the challenges in marketing a new product and ways to overcome them

Launching a new product in a competitive market is extremely challenging since in most cases one in five products survive for more than a year in the market. As a result, businesses often face massive losses. As the cost of introducing a new product in the market is high, it becomes vital for companies to develop capabilities that will help them in successfully marketing a new product. This latest article from Infiniti Research reveals some of the common challenges faced by companies while marketing a new product in the market and also explains the ways to tackle them. Read the article below to gain more insights on Infiniti’s product launch strategy.

Challenges in Marketing a New Product and Ways to Overcome Them

#4: New product launch strategy for a tech giant

Given the multitude of new products available in the market, it becomes extremely difficult for companies to set themselves apart from the global competition. Do you agree? Well, the case becomes extremely challenging when it’s a tech product. This was a similar case with a multinational tech giant. The company developed a new product line completely focussed on home automation. But, unfortunately, with several competitors out there in the market, the company encountered a tough competition. The company, therefore, approached Infiniti to develop a product launch strategy to reinforce their image as a purveyor of high-quality home automation systems. With Infiniti’s expertise, they were able to generate much-needed attention by attracting customers and generating huge profits for the company. Interested to know the approach undertaken by our experts to help the client? Well, read this complete success story here.

Developing a New Product Launch Strategy for a Tech Giant – A Case Study by Infiniti Research

#5: How to roll out a successful biopharmaceutical product launch plan?

Rising regulatory issues, growing stakeholder expectations, numerous market-access hurdles, and stiff competition are some of the critical hindrances coming in the way of biopharma companies. Are you running a biopharmaceutical business? If yes, these challenges must be common for you. So, in between all these challenges, how are you planning to roll out a successful product launch plan? Well, biopharmaceutical companies should study innovative pricing strategies during product development and make pricing a core pillar of the product’s profile. Are you interested to know the other points to focus upon for a successful product launch? This article from Infiniti Research will give you more insights.

How to Rollout a Successful Biopharmaceutical Product Launch Plan

Choosing the right product launch strategy is a highly critical task. Are you equipped to meet the challenges coming your way? If you are not sure, request a proposal to know how Infiniti’s product launch strategy solution can help your business to be prepared.

#6: Find out how competitive intelligence helps in product launches

Competitive intelligence supports all stages of a new product launch. Are you wondering how? Well, this is clearly evident in the success story from Infiniti Research. This success story highlights how competitive intelligence supported a retail industry player address robust issues pertaining to the pricing and marketing of various products. Also, find out how competitive intelligence helped them to embrace new sales channels, improve marketing efforts, and enhance product assortment. Read the full story here.

Competitive Intelligence Engagement Helps a Retail Client Deal with Product Launch in 10+ Countries

#7: A chemical sensors provider achieved market share in the South American market

Developing a robust product launch strategy to target specific customer segments is essential if you are trying to establish your business in any specific region. A chemical sensors provider was finding it difficult to segregate the customers in terms of need-based and value-based segments in the South American market. Infiniti’s solution helped the client to discover the value of each segment to tailor their marketing efforts. Furthermore, these solutions helped them maximize cross and up-selling opportunities. As a result, the client successfully launched a new product and realized a significant improvement in their customer retention rate. Get more insights here.

Market Entry Advisory Helps a Leading Chemical Sensors Provider Launch Their Products in the South American Market

#8: Understanding the basics of a product development strategy

For a product launch success, it’s important for companies to produce the best quality products. An effective product development strategy proves to be helpful in winning businesses from the competitors who are unable to meet the new performance levels of the company. Making quality improvements as a part of the company’s product development strategy also make it easier for companies to enter the markets with stringent quality and regulatory requirements. This latest article from Infiniti Research will help you gain more insights about product development strategy. Read the complete article here.

The Basics of a Product Development Strategy

CONTACT US to know more about our product launch strategy engagement.

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