Frequently Asked Questions
What is commercial viability?
Commercial viability is the likelihood that a product or service will be successful in the marketplace. To assess commercial viability, businesses and designers consider factors such as the potential demand for the product, competition, price point, and production and marketing costs.
What is technical feasibility?
Technical feasibility is the likelihood that a product or service can be developed and delivered successfully. We determine this by assessing several factors, including the availability of technology, materials and what is possible with production manufacturing techniques.
What is production feasibility?
Production feasibility is the likelihood that you can produce a product or service at an acceptable cost and quality level. An idea is said to be ready for manufacturing if raw materials, components and the right manufacturing partners are available and easily accessible.
Production costs must also be realistic and affordable. Most importantly, the right processes and equipment should be in place to ensure manufacturing and delivery capabilities.
What is the risk?
The risk is the potential for loss or damage if something goes wrong. A highly risky concept may have a high chance of failure, even if it is commercially viable. Conversely, a product that is not commercially viable has little chance of success, regardless of how low the other risks may be.
Finding the right balance between these two factors is essential for successful product development.
When assessing commercial viability, businesses must consider the risks involved in developing and delivering a product or service and the potential rewards.
What are the risks associated with developing a new product?
Numerous risks are associated with developing a new product, including technical, market, financial, and manufacturing risks.
Technical risks include the risk that the product will not work as intended or be unable to meet consumer demands.
Market risks include the risk that there will not be enough demand for the product or that the target market will not be receptive to the product.
Financial risks include the risk that the cost of developing and marketing the product will exceed the revenue generated from sales.
Manufacturing risks include the risk that the manufacturing process will be costly or defects that will make the product unsellable.
How can you reduce risk in product development?
First, conducting market research gives insights into consumer needs and wants. Second, building a prototype allows designers and engineers to test the product’s form, function, and feasibility. Thirdly, commercial viability can be assessed by gaining product costings form appropriate manufacturers.
It is also important to partner with a reputable product development company so you can have access to resources and expertise. Finally, securing funding can help you offset some of the costs associated with development and marketing.