CIMA E1 Syllabus E1. Operations management - Product and Service Development - Notes ^{6 / 21}

5 stages of product and service development

Continuously improving products/services and developing new products/services is very important to gain competitive advantage by achieving customer satisfaction.

The customer value proposition is the set of benefits that a product or service promises to deliver. This is a form of cost-benefit analysis.

Data for product development decisions can maximize customer value and satisfaction in the most cost-effective manner.

This is done in 5 stages.

1. Consider customers' needs

   Satisfying customer needs is necessary.

2. Concept screening

   Consider the pros and cons of the new product/service, and consider whether the company thinks that the new product/service will be profitable.

3. The design process

   This may include procedures such as building a prototype

4. Time-to-market

   A shorter time to market is always desirable as it may allow the organisation to get ahead of competitors.

5. Product testing

   The new product should be tested before it is released to the market.