Product development vs project management. What is the difference between the two? Why are they both important? Let us know below. So, keep on reading.
Product Development vs Project Management
Product development is the process of creating a new product. This is a broad term that covers ideation, design, prototyping, and finally the launch of the product. The process of product development may include several projects. Like new product development, product improvement projects, or sustaining projects.
Then, project management is a structured approach to managing and executing a project. It deals with setting goals, planning, and monitoring work progress. As well as coordinating with team members, reporting status and ensuring quality.
Also, it is a broad term covering design, prototyping, and more. It deals with setting goals, planning, monitoring work progress, coordinating with team members, and ensuring quality. Further, it may include several projects like new product development, product improvement projects, or sustaining projects.
So, a project manager is responsible for the project while a product manager is responsible for the product. Product development has to do with creating the actual products. While project management handles the requirements or tasks associated with it. Then, the development entails several phases like concept generation, design, and development phases. While management has only one phase which is execution.
Further, a project manager has to manage multiple phases while a product manager only needs to manage one phase at a time. In general terms, there are no differences between product development and project management as both are important in their way.
However, there are significant differences in their scope of work as well as their objectives. A project manager needs to execute his tasks within the limited time frame determined by the higher authorities. Whereas a product manager can take his time in any phase of the product creation process.
Product Development and Project Management
Why are both of these important? Firstly, both set the stage to develop new products or improve existing ones. They help companies to achieve their objectives. Secondly, both are important to the company’s bottom line. If the company can create improved products, then it can increase its market share. Likewise, if it can develop new products, then it can get more customers.
Also, both of them require a lot of time and resources. For example, product development takes place in multiple phases like concept generation, design, prototyping, and development phases. So, it requires a lot of time and money as well as a lot of expertise in different areas like design, engineering, etc.
Likewise, project management takes place in five phases initiation phase, planning phase, executing phase, monitoring and controlling phase, and closing phase. All these phases need proper coordination with different teams and hence a lot of time and effort.
As you can see, it isn’t easy to develop a new product or improve an existing one. It requires a lot of time, money, and expertise. So, both are methodologies need to be used to make it work. Product development and project management are two sides of the same coin. They are both important for the company’s growth.