A product idea is an idea for a possible product that the company can see itself offering to the market.
It is obligatory for every company to exactly define its product idea and the process for making it happen. The company needs to go through several stages to remain on a safe side when it starts this big job. The main stages that it will need to go through to define the product idea for avoiding failure and confusion are briefly discussed here:
1. Problem Identification: In this process, the company first has to solve one of our society’s problems. So, it needs to recognize a problem or why will people purchase it? While several other products don’t give solutions to any problem, but the market leaders do. Defining a problem is thus, vital.
2. Product Overview: Now the company needs to define the idea in a more detailed way and more from the company’s side and what it thinks is right. Four components shape the core of the product overview:
• Uniqueness of the product.
• The product features.
• Benefits of the product.
• The target audience.
After defining the product overview, the company must make sure to protect its intellectual property, set some barriers to entry, and define the use cases.
3. Product Design: It includes everything regarding the looks of the product, the functional requirements, the hardware requirements, the software requirements, the mechanical requirements, and the performances of the product.
4. Business Structure: Here, the company needs to establish the value propositions, define the cost structure and the revenue streams.
5. Business Insights: This is the last stage and the most important and theoretical one among all the stages. It includes risk assessment, team management, creating a legal structure, doing financial projections, and setting milestones.