Why Global Product Development Is The Best Choice For Startups In 2021?

Globalization of product development is not a new term. This spectrum is dominating the entire software development industry with its unconditional benefits and scope.

A new paradigm has emerged making enterprises utilize their expertise in software development most productively. The diverse teams around the world collaboratively develop innovative software products. The interest of the businesses has now shifted from local to global.

As the digital space is widening and flying at skyrocketing speed with every passing day, shedding some light on Global product development is an important topic to discuss now.

Global Product Development- The Need Of The Hour

Global product development is the reconfiguring of product development activities across various parts of the world. Product development helps businesses maximize productivity while mitigating risk at all levels. Here, all elements of the product development process, from R&D to production, are globally dispersed. Global Product development is a blend of outsourcing and remote development.

While offshoring and outsourcing are the major facets of the globalization of tasks, the product development process mainly revolves around the following major activities:

• Marketing research that identifies and document user requirements
• Design, analyze and refine new product ideas
• Engineering and production activities
• Manufacturing, operational, and Maintenance activities

Benefits of Global Product Development To Businesses

Here are some quick points to showcase you some benefits of Global Product Development:

• Greater engineering efficiency through the utilization of lower-cost resources
• Access to technical expertise that is distributed globally
• The innovative design of products for more global markets
• Greater flexible Product Development resource allocation

Every startup founder has to go through a unique product development process to take their startup from idea to actual product. Here, Global product development comes into the picture.

Why Do Startups Consider Global Product Development?

Great technology doesn’t always work. Good programmers fail to execute code. Whether your product is unique, or you need to enrich and amplify products and services digitally to compete at speed and scale with your competitors, a strong product development capability will define the winners and losers in the current digital age.

Product development is considered quite challenging for startups with a low budget, and limited workforce. The right product development decisions will make the difference between the success and failure of a startup.

Globalizing the product development process can bring signi?cant bene?ts to startups:

• • Many startups strive to reduce product development costs by dispersing activities to different teams working in different parts of the world. There is a large pool of talent in nations such as China, India, Poland, and Vietnam. Locations close to markets, and suppliers can reduce your transportation and other logistics costs.
  • Globalization of product development provides startups the opportunity to acquire the best efficient resources no matter where they are located. Also, the startups can in essence ‘work around the clock with product design or production continuing in a new location when another unit leaves for the day.
  • Offshore resources can also be used to boost innovation. Additional resources at lower prices can help you explore more options for the local or global markets.
  • Initiating some product development activities in few locations across the world provides startups access to markets in those regions. They can easily make direct connections with potential new markets with the help of local engineers. This will lead to the global growth of startups.
  • Though cost is the primary reason for most of the startups to consider Global product development, still technology, product innovation, or revenue growth also equally important as it drives GPD strategy.
  • Virtual teamwork is the boon that the digital ecosystem has blessed startup owners with and they should make the best use of it to build their product using a global product development strategy.
  • A remote team is important to bring expertise, and flexibility to the product development process, and also helps your startup to reach heights.
  • Global Product Development offers startups a globally accessible repository that securely captures and manages product data when synchronizing development activities across boundaries.

Ford-A One Ford Global Product Development System

In January 2008, million-dollar company Ford Motor was going through a transition state. It had multiple brands, models operating in regions in North America, South America, Europe, and Asia. Each region had its unique product development systems, manufacturing processes, and suppliers.

Ford is continuously developing as a reliable global Product Development system for many years. It was successful in creating one template for designing, engineering, and developing all Ford vehicles throughout the world.

The One Ford Global Product Development System (GPDS) will enable the company to launch more vehicles faster, increase competitiveness, and boost profitable growth.

Instead of acting as individual entities, Ford’s operations in different regions of the world are following the same global product plans today.

"We have implemented a global product strategy that calls for product excellence through leadership in design, safety, fuel economy, driving quality, interior comfort and convenience features and technology – particularly infotainment," said Derrick Kuzak, group vice president, Global Product Development. "This strategy aligns the global product and technology plans and all vehicle programs around the attributes that distinguish all Ford vehicles globally in a crowded marketplace."

Think Global, Develop Local

Globalization of product development is not just about reducing costs: it’s about driving business growth in new markets. Every sized business is adopting global product development strategies to capture the global markets to boost their revenues and dominate the market with their power-packed global products and services. It’s the right time for your startup to enter into the new world of global product development to enjoy endless profits.

Tanya Kumari leads the Digital Marketing & Content for Classic Informatics, a global web development company She is an avid reader, music lover and a technology enthusiast.