New Product or Service Design and Development

New Product or Service Design and Development

New product design and development

  • Businesses need to continually innovate, design and develop new products and services.
  • This could be adding more features or developing a small design improvement.
  • It is usually driven by need of the business to develop or maintain competitive advantage in marketplace.
  • New product design will focus on satisfying the needs of customers who already consume the products of a particular business as well as attempting to sell to new customers.
  • New product design is necessary to maintain market share because demand for most products will decline over time.

New service design and development

  • Service design and development differs from the design and development of products as services are intangible.
  • Services are, by nature, typically customised.
  • A service can be:
    • explicit – the tangible aspect of the service eg time, expertise, skill and effort
    • implicit – the intangible aspects of the service eg the feeling of being looked after
  • Both explicit and implicit aspects must be addressed in the design of a service.
  • Service, level of skill, time and expertise must be considered

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.