Difference Between Product Development and Re-Engineering

Product development and re-engineering are two important concepts in the fields of business and innovation. They involve distinct approaches and strategies to improve existing products or create new ones. Understanding the difference between product development and re-engineering is crucial for businesses seeking to enhance their competitiveness in the market.

According to a survey conducted by McKinsey & Company, around 75% of companies consider innovation and product development as their top priority for growth. The global spending on research and development (R&D) reached a record-breaking $2.2 trillion in 2020, indicating the emphasis placed on product development worldwide. A study conducted by the Standish Group revealed that around 70% of IT projects involve some form of re-engineering, highlighting its importance in the technology sector.

In this article, we dive deep into the difference between product development and re-engineering, what stages each process includes, and when product development or engineering can benefit your business. Let’s start by understanding exactly what product development means!

What is Product Development?

Developing a new product from scratch is a complex process that demands research and an understanding of the product’s users. The product development process starts with conducting user research and getting to know the user’s requirements. Accordingly, a prototype is created and further validated with the clients and the user to ensure all the aspects are included according to the requirement. The process has different aspects, such as design, development, coding, and deployment, demanding a pool of resources and time. 

The team requires much effort as they start the process from scratch. Developing and innovating a new product can benefit a business and give it a competitive advantage, attracting several consumers. Businesses can ensure high-quality products, leading to brand loyalty and market demands.

The 6 Stages of the Product Development Process

Product development is a crucial process involving a series of stages that companies must follow to bring a new product to market successfully. Each stage has its own unique challenges and goals, and a misstep at any point can lead to costly mistakes. Here are the typical stages of product development:

What is Re-engineering?

Re-engineering is reimagining an existing product to make it perform seamlessly and have higher quality and value. Re-engineering is all about modernizing and evaluating areas that require improvements to make them effective and cost-efficient. The team starts re-engineering to create better outcomes from the already developed product. 

The re-engineering process can help a business reduce redundant processes and streamline workloads by restructuring operations and eliminating any chances of errors. However, with such efficiency, businesses can grasp market conditions and technological advancements, enabling a competitive advantage. Businesses can enable a more flexible and scalable approach to improve efficiency and respond to changes in the market

The 6 Phases of Product Re-engineering Process

Reengineering is critical for companies that want to improve their operations, eliminate inefficiencies, and reduce costs. Here are the typical stages of reengineering:

1. Identify Areas of Improvement:
   The re-engineering process starts with identifying the opportunities for improvement and analyzing the existing product’s processes and inefficiencies. It involves analyzing all the products and identifying the issues hindering their performance. 
2. Analyze:
   Once the area of improvement is identified, the next step is the evaluation of the product in detail. The team develops strategies and creates a process to analyze each step. The process identifies inefficiencies, redundancies, and other issues hampering the product’s performance.
3. Redesign:
   In this stage, the plan is to redesign the processes to modernize the product according to the evaluation. The process starts by developing new processes, redesigning workflows, and creating new procedures.
4. Implement:
   After developing and strategizing new processes, the next important stage is to implement those effectively. The implementation process can start with training the employees or utilizing new technologies. The ultimate goal is to integrate the new process into the existing operations ensuring they run smoothly. 
5. Monitor the Developed Products:
   The next stage lies in monitoring the developments and the implemented process. The project manager monitors performance, quality, and user experience metrics. Any potential issues or bugs are evaluated to make the improvements further.  
6. Continuous Improvement:
   Continuous improvement is essential for every re-engineering project. The team tracks the metrics and performance of the product to evaluate any defect after making the improvements. Continuous improvements help the product perform seamlessly and ultimately provide value and a greater user experience.