Categories of new product development

There are several categories of new product development (NPD) that companies use to classify and manage their product development processes. Here are some of the most common categories:

  1. Radical Innovation: This type of innovation involves creating a completely new product or service that does not exist in the market. Examples include the development of the first smartphone or the creation of a new medical device.
  2. Incremental Innovation: This type of innovation involves improving an existing product or service by adding new features, functionality, or design. Examples include updating a smartphone with new software features or improving the performance of a car engine.
  3. Breakthrough Innovation: This type of innovation involves creating a new product or service that is significantly better than existing products or services. Examples include the development of a new type of battery or a new medical treatment.
  4. Sustaining Innovation: This type of innovation involves improving an existing product or service to maintain its competitive advantage. Examples include updating a product's design or improving its performance.
  5. Disruptive Innovation: This type of innovation involves creating a new product or service that disrupts the existing market and creates a new market. Examples include the development of the first e-book reader or the creation of a new type of online payment system.
  6. Platform Innovation: This type of innovation involves creating a new platform or technology that enables the development of new products or services. Examples include the development of a new operating system or a new type of semiconductor.
  7. Open Innovation: This type of innovation involves collaborating with external partners, such as suppliers, customers, or startups, to develop new products or services. Examples include co-creating a new product with a customer or partnering with a startup to develop a new technology.
  8. Modular Innovation: This type of innovation involves creating a new product or service by combining existing components or technologies in a new way. Examples include creating a new type of smartphone by combining existing components, such as a camera and a processor.
  9. Design Innovation: This type of innovation involves creating a new product or service with a unique design or user experience. Examples include designing a new type of furniture or creating a new type of user interface.
  10. Service Innovation: This type of innovation involves creating a new service or experience that complements a product or service. Examples include creating a new type of customer support service or developing a new type of loyalty program.
  11. Business Model Innovation: This type of innovation involves creating a new business model or revenue stream. Examples include creating a new type of subscription-based service or developing a new type of advertising model.
  12. Process Innovation: This type of innovation involves improving the processes and operations of a company to increase efficiency, reduce costs, or improve quality. Examples include implementing a new manufacturing process or developing a new supply chain management system.

These categories are not mutually exclusive, and many companies may use a combination of different categories to develop new products or services.