The importance of product development in times of crisis

Especially in times of crisis, such as with Covid-19, the management of affected companies asks itself the question in which areas costs can be reduced and investments postponed.

Often the product development or further development is affected by budget cuts, since their performance is not reflected in the immediate, short-term success of the company. This way of thinking is understandable and yet by no means correct. But let's start with a definition.

What is product development?

Product development is understood to be "the ability to achieve growth in existing markets through new products or improvements to existing products. In Ansoff's product-market-expansion grid, product development is one of the four alternative thrusts to open up sources of growth". (Prof. Markgraf, Definition Product Development,

A distinction is made between two types.

  1. New innovations in an existing market

  2. Further development of existing products (e.g. new product variants)

Why should companies invest in product development right now?

The answer is very simple: Especially in times of crisis, companies should invest in the (further) development of their products so that they can remain competitive in the medium and long term. Cutting the budget today will most likely reduce the company's success tomorrow many times over. This future scenario cannot be in the interest of the company, the employees and the stakeholders. Therefore: Especially in times of crisis, it is worthwhile to invest in product (further) development in order to survive the crisis well and to be able to start even stronger into the future afterwards.

With our Intelligent Validation Assistant (IVA), companies can easily and securely document, store and evaluate the (exploratory and guided) tests of their products and services. True to the motto: Not only the crisis has an end sometime, but also the chaos of notes!

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