New Product Introduction (NPI) and New Product Development (NPD)


These two phenomena New Product Introduction (NPI) and New Product Development (NPD) sound similar in meaning. Even though both the terms are dealing with new products, their processes, phases of products, and methodologies to achieve the results keep them different from each other. 

Irrespective of fields, industries would launch a new product at a certain interval based on the market. By creating and delivering new products, companies stay updated on the industrial trends, future market needs, financial stability, and a fresh income generation source. 

Since the companies are constantly making new products or services to satisfy their target customers, New Product Introduction and New Product Development are the terms that are unavoidable. 

Producing the products with the highest quality is not as easy as it seems to be. Processes require a lot of streamlined and well-planned flows and systematic tools to monitor that it is implemented perfectly from the ideation stage till the final product launch. Let’s get deep into the difference between these two.

Check out our blog on The Impact of The Fourth Industrial Revolution On Technology

What is NPI (in Manufacturing)

New Product Introduction (NPI) deals with how the product and service of a company get delivered successfully to the market. The role of NPI is utilized once after the particular product or service is designed and produced. This mode is mostly focused on the best practices and process flows to make the product launch easy and perfect. 

The NPI process brings numerous advantages to the manufacturing industry. Some of them are as follows


Faster time to Market

The strategies and process flows in NPI assist the products to get launched to the market very faster 

Easy to Monitor and Manage  

NPI methodologies with a Product Life cycle Management tool in place as the assisting technology keep the managing of the process simple and effective  


This is a sequential benefit of the two previous benefits. When the product launch happens rapidly and when the management of streamlined processes is easy with PLM, there are many obvious benefits reflected in profits


Phases in NPI 

As the output product is high quality, the segregation of phases or process flow must be there to manage better.


Phase 1 -Define

Defining what product or service that is going to be made always makes the complicated processes into simplicity. A product should start by creating projects and tasks and proper assignments. Predictions, strategies, and breakdown of the steps involved in the making of the product are done in this phase. A well-organized project management tool could handle this phase effectively 


Phase 2 – Feasibility

Before starting the real-time plan, a company must see whether the product or service is feasible to build or not. Only after this phase, a product can start producing from the idea level


Phase 3 – Develop

This is the actual product building phase. After the planning phase, execution of a plan to achieve the desired and defined product or service. At this execution level, production takes place with a larger focus. Developing a product as planned is the most time-consuming and resource-consuming process.

There are highly technical tools available to handle this phase with greater benefits such as PLMs. Basically in the production phase, there would be a lot of professionals involved and communication between the departments happens often. Interdepartmental communication, parts, and BOMs flows for a clear picture and managing the resources efficiently would be assisted with a PLM tool


Phase 4 – Validate

This is indeed a quality assurance phase in layman’s language. Validating the product or the service whether it is fulfilling the requirements, it is ensuring the quality of the features and it is dealing with the issues and solutions or not. This phase is ensuring the quality of the product before it gets launched which would reduce the conflicts with the customers


Phase 5 – Implement

In the implementation phase, the products or the services are prepared for release. The validated products are implemented in the real-time scenarios


Phase 6 – Evaluate

Once the product reaches the customer, the purpose of the product should meet the requirement as planned. The feedback or the up-gradation of the product for the future can be evaluated in this phase.


What is NPD (in Manufacturing)

New Product Development (NPD) basically deals with the entire Product Life cycle of the product from the design and development till it reaches the Customer. Basically, this will focus more on the product creation phase and parallel the market releases and financial bodies related to the making of the products.


How is NPI different from NPD?

Although both NPI and NPD are dealing with the production phases, these two are certainly not the same. And the components inside them also have differences. Launching and Manufacturing of the Product focused mostly on the NPI. Whereas Ideation, Design, and Commercialization are managed in NPD.

In NPD processes, we can spend resources on research and development with trial and error methods. Creativity and high-risk activities are possible in NPD since it allows testing and completing the feature for enhancement. On the other hand with NPI, it is a well-defined, preplanned and streamlined process. So new creative ideas and risks are not involved much. And that is not required for NPI processes.

Beyond the differences in the approaches and processes, these two are the most important principles of the manufacturing industries. Both NPI and NPD can be managed effectively and efficiently with a collaborative lifecycle management platform. 

For managing both NPI and NPD a PLM tool plays a major role. The PLM can make the manufacturing industries future-ready. Find out about the benefits of PLM in our blog on The Benefits of an Advanced PLM Application.


KloudPLM offers a cloud-first PLM solution that helps you to create the products of tomorrow. Different teams such as marketing, sales, engineering can use KloudPLM and work together to get the product from concept, to design, to market. Schedule a demo today to know more.

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