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A New Framework and a Model for Product Development with an Application in the Telecommunications Services Sector

This paper argues that a product development exercise involves in addition to the conventional stages, several decisions regarding other aspects. These aspects should be addressed simultaneously in order to develop a product that responds to the customer needs and that helps realize objectives of the stakeholders in terms of profitability, market share and the like. We present a framework that encompasses these different development dimensions. The framework shows that a product development methodology such as the Quality Function Deployment (QFD) is the basic tool which allows definition of the target specifications of a new product. Creativity is the first dimension that enables the development exercise to live and end successfully. A number of group processes need to be followed by the development team in order to ensure enough creativity and innovation. Secondly, packaging is considered to be an important extension of the product. Branding strategies, quality and standardization requirements, identification technologies, design technologies, production technologies and costing and pricing are also integral parts to the development exercise. These dimensions constitute the proposed framework. The paper also presents a mathematical model used to calculate the design targets based on the target costing principle. The framework is used to study a case of a new product development in the telecommunications services sector. Keywords—Product Development Framework, Quality Function Deployment, Mathematical Models, Telecommunications.