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New Product Development and Research & Development – What is the Difference?

New Product Development and Research & Development are two concepts that often appear in the manufacturing sector. If we don’t understand clearly, we will be easily confused. In this post, we will clarify these two concepts and point out the differences between them.

In the some previous posts, we introduced obviously about New Product Development so that we only focus on Research & Development in this article.

If you are concert about New Product Development, please access this link:

What is Research Development?

Research and Development is often referred to as R&D. It seems to innovation activities carried out by businesses or governments to develop new products/services or improve products and services available.

Characteristics of Research and Development activities include:

  • Novelty: The results of the activity must be new discoveries or maybe unknown
  • Creativity: Based on initial unclear concepts and hypotheses.
  • Uncertain: The final outcome cannot be ascertained.
  • Systematic: Planned and budgeted for implementation.
  • Assignable and renewable: The activity can be transferred to another person, group, or business and the results remain the same.
R&D in medical to make up new medicine. Courtesy: nlspharma.

Research and Development is carried out in some main actions:

1. R&D market
A research usually begins with problem needs solving. Similarly, a new product or service will have to address the frustrations customers face with their current product, their future demand, etc. So, the R&D team needs to collect and Analysis of market information, customer needs.

For example: Collecting, learning and analyzing new trends that customers are interested in. Typically, this will be undertaken by marketing or sales personnel, even an outside specialized unit. Sometimes, the R&D department also directly explores the market to better understand customers.

2. R&D technology

The mission of Research & Development is finding new technologies, develop technologies with high applicability. Thereby, we can create new products with differentiated features. This task also includes “technological intelligence”.

For example: In 2007, Apple launched the iPhone with a multi-touch capacitive touch screen and became the most popular smartphone. Before that, Apple’s team has carefully researched this technology.

Multi-touch and touch keyboards have been developed by a Fingerworks company since the 2000s. Apple acquired this company in 2005, keep developing and optimizing technology in order to be suitable for iPhone.

iPhone 3 is a result of Apple after many years research multi-point capacitance technology. Courtesy: GenK.

3. R&D product
It aims to make improvements design, materials, uses, features, etc. based on existing technologies. Especially, this includes improving the finishing and packaging methods to save costs as well as convenience for users.

4. R&D Process

It can be improving, developing operating procedures, manufacturing processes, service processes, etc. The improvement of a successful process will contribute to bring productivity – higher efficiency for businesses.

For example: Some companies do in-depth research to develop and improve processes to apply suitably for each enterprise.

The relationship between Research & Development

Research Development
The goal is new idea, new method,
new technology, invention.
The goal is new product
It’s is difficult to deploy because Research is based on solid
technology foundation
It’s easy to deploy because of having available technology
A lot of investment costLow investment cost
Have to spend long timeHave to spend a short time
Bring out big valueBring out a small value
Out put isn’t reliableMain out put is product, service or relative something.
The relationship between Research & Development.

The difference between New Product Development and Research & Development?

New Product Design Research & Development
NPD need specialityR&D need deep speciality
NPD is wider than R&DR&D is narrower than NPD
NPD begins with realizing market opportunities for products, ending with the production, sale and distribution of products to
R&D only carries out technical design, includes: product idea, technology, technique project, concept, test.
Although NPD is more simple than R&D but NPD needs high-quality process with many steps.R&D have to carry out some steps.
NPD used R&D’s output (technology, component, etc.) to manufacture worked-out product.R&D seem to support action for NPD
Nowadays, NPD is more and more popular in over the world. Almost company has Product Development department.
Only some big companies operate in R&D sector to make a profit or serve manufacture strategic product.

The difference between New Product Development and Research & Development.
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New Product Development and Business Development – what is the difference?

New Product Development and Business Development are impressive titles that are often heard in business organizations. However, not everyone understands and knows these concepts well. So, what are Product Development and Business Development? How are they different? Let’s find out.

What is New Product Development?

New Product Development is the activity to bring out a new product in the market. It means this product has never been manufactured in this company.

For example: company A trades in air purifier about 5 year. However,
company A want to expand market so that it have to manufacture new products. It can be dehumidifier, humidifier or combination product.

“New product development begins with realizing market opportunities for products, ending with the production, sale and distribution of products to customers.”

With this definition, it is clear that the scope of New Product Development is very wide. It almost covers the entire life cycle of the product, not just limited to the stages of drawing, calculating or testing.

Therefore, an engineer works in the Product Development department must not only have in-depth technical knowledge but also have diverse knowledge along with effective working skills and methods.

Coca – Cola appears for the first time in 1899. Courtesy: Wikimedia Commons.

In industrial production, profession product development process will help company make new products response standard and quality.

With 14 years of experience in making products, cooperating with businesses, MES LAB develops a complete Product Development process, based on the “Design Thinking” rule. It consists of the following steps:

  • Empathize
  • Define
  • Ideate
  • Prototype
  • Test

This philosophy has the following 4 characteristics:

  • Centered Human centered: User centered
  • Collaborative: Collaborate closely in the design process
  • Experimental: Promote prototyping and testing
  • Optimistic: Every problem can find a solution

What is Business Development?

In the simplest terms, Business Development can be summarized as the ideas, initiatives and activities aimed towards making a business better. This includes increasing revenues, growth in terms of business expansion, increasing profitability by building strategic partnerships, and making strategic business decisions.

Business development based on 3 main components:

  • Customers: Research on customers’ behaviors, regions, etc.From that, they can find new customers and create more value for existing customers.
  • Market: Understanding and assessing the market, analyzing competitors, etc. grasping the latest market trends
  • Relationships: Building and leveraging relationships based on trust to facilitate opportunities.
Business development based on customers, market, relationship.

Business Development activities extend across different departments, including sales, marketing, project management, product management and vendor management. Networking, negotiations, partnerships, and cost-savings efforts are also involved. All of these different departments and activities are driven by and aligned to the business development goals.

How are they different?

Product DevelopmentBusiness Development
Product development is the
creation of new products to provide consumers and markets so that enterprise can earn profits through sales and business activities
Business Development can be summarized as the ideas, initiatives and activities aimed towards making a business better
The goal is to create new productsThe purpose is to develop and expand business
Short-term natureLong-term nature
Who responsible are the engineersBusiness developer with expertise in economics will perform.
The differences are between New Product Development and Business Development.

What is the relationship between New Product Development and Business Development?

Although there are a few differences, however, New Product Development and Business Development also have some similarities such as:

Firstly, both of these activities are creative.

Innovation in New Product Development is expressed through product ideas. This idea must be unique, new, hard to copy, highly feasible, etc. From that, it is able to design and develop ideas into concepts and finished products.

Simply ! No idea, No product.

For Business Development, the idea is even more important. Ideas are expressed through business development strategies. Because of its long-term nature. A good business strategy will create a foundation for businesses to grow and expand their business in a few decades.

Secondly, both of them are indirectly profitable for the company

After, the product is manufactured. Selling product need to go through the sales and marketing department – the department directly working with customers.

Besides, Business Development aims to expand and develop the market in order to find potential market sources for products. After that, sales and marketing department will sell products to bring direct profits to the company.

In conclusion, they have reciprocal support.

In the course of product development, one important step is Define. This activity aims to devise strategies for the product. That is, the product will be sold to the audience, price, market, etc.

At the same time, good products also bring high opportunities to expand and develop business markets.