Most companies today are structuring their new product development process to accelerate results and control costs.

Step 1
Corporate strategy and innovation
A corporate plan should make provision for the research and the development of new ideas. The innovation will be orchestrated by senior management and will dictate the resources made available to new development.

Step 2
New product ideas
Lots and lots of ideas are needed. After 50 new ideas maybe number 51 will be the winner. Many innovations are small improvements and line extensions and not complete breakthroughs. The team should focus on projects that are consistent with the overall strategy.

New ideas can originate from:
* Employees - front line people are the closest to the customer. Toyota receives 2 million suggestions per annum.
* Customers - innovative customers are opinion leaders who are generally willing to talk about their requirements.
* Research and Development - scientists play a pivotal role in hi-tech business.
* Competitors - systematic comparison of products and a search for best practices.
* Distributors - They know the end-user and competition which can be valuable allies.
* Psychologists and market researchers - to find new gaps in the market
* Outside sources - ideas are bought

Step 3
To select the maximum available number of ideas that are compatible with the firms' objectives.

Step 4
Concept development
The idea is developed as a consumer proposition and tested on potential customers. Customers buy solutions to their problems and not products. It is important to distinguish between a product idea and its positioning concept. The product is the new physical good and its positioning concept is the choice of the target market and benefit proposition.

Testing alternative position concepts are essential to the new product development process. It involves alternative benefit propositions to different potential customers.
Managers then research the following:
* Communicability
* Believability
* Need gap
* Perceived value
* Usage

Step 5
Business analysis
Substantial investment has to be made in developing the product and creating an infrastructure to manufacture it. A few areas to consider:
Faith in the profit projections
Assessment of the commercial risk
The required investment
Other strategic issues involved in the decision.

Step 6
Brand development
To build brand equity and to establish a barrier for competitors to enter the market.
The product characteristics should be an effective product with a distinct identity and added values to the customer. To build the brand the first step should be that the quality must be maintained so the customer has faith in the brand, so building brand loyalty. The firm should have augmented products surrounding the product for added benefit to the customer - such as warranties, customer care line, delivery service, free installation etc.

Rapid feedback systems should be put into place and monitored to evaluate the performance of the product.