Stage 2: Build the business case
This is the final stage prior to actual product development. A detailed business analysis needs to be conducted in order to clearly define the NPD project and to verify the attractiveness of the product to be developed.
Therefore, you are asked to undertake market research studies to determine the customer's needs, wants and preferences. Make a competitive analysis to benchmark your product advantage, compared to what is (or is going to be) offered on the market.
Another activity is detailed concept testing to determine the likely customer acceptance of the new product. A detailed technical appraisal must focus on the 'do-ability' of the project. Customer needs and 'wish lists' must be translated accordingly into technically and economically feasible solutions.
An operations appraisal can be done as well, where you assess the requirements of manufacturing, costs of manufacture, and additional investment required. Make sure that legal aspects are investigated, such as relevant patent registration and copyright work.
Finally, a detailed financial analysis needs to be conducted as well. Try to get an overview of the relevant financial figures.
In the following section, you will be introduced to concept testing.