- What is product development?
- What is business development?
- Comparison of product development vs business development
When it comes to business, there are two main types of development: product development and business development. Both are integral to the success of a company, but they are very different processes.
In this article, we will discuss the differences between product development and business development, as well as their individual purposes within a company. We will also provide examples of each type of development so that you can get a better understanding of them. Let’s get started!
What is product development and what is its purpose?
Product development is the process of designing, creating, and launching a new product. The purpose of product development is to bring a new product to market that meets the needs of customers and helps the company achieve its business goals.
There are four main stages of product development: ideation, design, development, and commercialization.
Ideation is the first stage of product development and it’s all about generating new ideas for products. This is usually done through market research and customer surveys.
Once an idea has been generated, the next step is to design the product. This includes creating a prototype and testing it to make sure it meets the requirements.
The development stage is where the product is actually created. This involves working with manufacturers to create the product and getting it ready for launch.
Finally, commercialization is the process of making the product available to customers. This includes marketing and sales activities.
What is business development and what is its purpose?
Business development is the process of identifying new business opportunities and developing strategies to pursue them. The purpose of business development is to grow the company by expanding its reach into new markets or by developing new products or services.
There are three main types of business development: market expansion, new product/service development, and mergers & acquisitions.
Market expansion is all about increasing your company’s share of the existing market. This can be done through marketing and advertising campaigns, as well as by expanding your distribution channels.
New product/service development is all about creating new products or services to meet the needs of your customers. This includes research and development, as well as testing and launching the new product or service.
Finally, mergers & acquisitions is the process of merging with or acquiring another company. This can help to expand your company’s reach into new markets or give you access to new technology or talent.
Comparison of product development vs business development
Now that we’ve gone over both product development and business development, let’s compare them side-by-side.
Purpose: To bring a new product to market that meets the needs of customers and helps the company achieve its business goals.
Stages: Ideation, design, development, commercialization
Examples: Creating a new flavour of ice cream, launching a new fashion line
Purpose: To grow the company by expanding its reach into new markets or by developing new products or services.
Stages: Market expansion, new product/service development, mergers & acquisitions
Examples: Opening a new store in a different city, developing a new app
As you can see, product development and business development are two very different processes. Product development is focused on creating new products, while business development is focused on finding new opportunities for growth. While they both have their own unique purposes, they are both essential for a company’s success.
I hope this article has helped you to better understand the difference between product development and business development.