What requirements should be met for Successful new product development?

A product sells only if it has customers existing who can talk for it.

Work with marketing and find one good client and/or category of audiences. Then work out product features. classify them as Necessary / Good to have / Frills etc.  Features could be functional, activity kind or whatever.

Work out other areas this product has to integrate with, work out the channel of distribution. How would u distribute this product, as a SaaS, via ftp, via distribution channels, via Master Agent distributor who will make a chain, and also give you marketing and / or product inputs.

Work out your licensing scheme, decide whether this is a one-off product, or a product that would be customized in which case you need system itnegrators.

By now, you can see how much work is going to be done outside of the production facilities. Decide how much money you got to blow. Product development is 5% development costs, the rest a lot of money, efforts, and people going around in the market.

My personal experience with Indian companies last 10 years on anything associated with products has been singularly Horrid, and endorses opinion of a Japanese mentor of mine, if   you want to develop a product, keep away from Indians unless the product is stablised and you need them only for maintenance and new features, new platform availability or migration to a new language or region platform. 

So in effect, unless the remaining 95% some other guys is doing, or unless you are HCL / Wipro / TCS / iFlex,   don't touch products, especially if you are ISO: 9000 or CMM level companies.

Bahut bahut mahenga pad jayega and will leave you with lots of heartburns.  Worked with 15 products, only 2 ideas worked out well.

Product marketing and development also need high quality marketing types, not the regular succulent fawning types with heavy accents, but regular types who have great functional knowledge, prices, trends of Web product movements, hands-on, can give good hard feedback, and powers to really kick production teams around.  Production teams need strong Agile team mindsets, and a great experience with Software Configuration management tools, keep track of test data, good testing tools.

LESSON NO 1:  Get a client to use it and refer it

LEsson NO 2: Get a client to use it and be its reference

Lesson no 3:  Get a client to use it and be its reference

Lesson 4 - 10: Dont waste time making the perfect product with great features and being the New Taj Mahal. You will take 22 years, and find yourself buried in a black tomb across the river, and others will call it an Ajooba !

There are good books in the market to assist the efforts for product development. Ensure these are read thouroughly and understood by GM and sr Project Managers The Standard practices can make a disaster out of making a product, so there is a lot of unlearning to do.

    Every product development effort must start with the end product in mind. The best practice to manage this will be to develop a market requirement document. This is a live document which captures all the market requirements, and this document can be updated or changed at any time as the market needs changes.

QFD is a approach thru which the the inputs from customers in a reasearch is converted into quantifiable terms. These are then utilised to design various parameters of the product.