Definition
Tools and processes for pushing new products or services to markets.
In detail
New Product Development is a set of tools and processes to bring new products or services to market, covering the entire process from concept to launch. It addresses low innovation efficiency and high market failure risk by using structured processes (e.g., stage-gate) to control risk. Unlike project management, NPD focuses on the product itself, not individual projects. Its outputs are typically new products, launch plans, and market feedback.
Example in practice
When a company plans to launch a new product, the NPD process can be applied. For example, a home appliance company developing a smart refrigerator defines needs through market research, designs prototypes, tests and validates, and finally mass-produces and launches. Stage-gate reviews are used throughout to ensure each phase meets standards. The product ultimately launches successfully and gains market share.