How product development as a service can drive innovation in your portfolio

Blog 28.1.2025

Key Takeaways:

  • Product development as a service: A flexible, collaborative game-changer. The traditional in-house development model is giving way to a more agile, innovative service-based approach. By tapping into external expertise, brands can adapt faster to market changes, access fresh insights, and co-create products that truly resonate with today’s consumers, especially Gen Z.

  • Innovating the product portfolio with external expertise. Service-based product development enables companies to diversify their offerings and stay competitive. This approach fosters creativity and allows for experimentation, helping brands innovate without the heavy investment of traditional development. By working with external experts, brands can bring culturally relevant and market-ready products to life.

  • Cost efficiency and resource optimization. One of the standout benefits of product development as a service is the potential for significant cost savings. This model reduces the need for large in-house teams and heavy infrastructure costs. By collaborating with experts, companies can focus on their core competencies and strategic growth while optimizing resources and staying ahead of the competition.

  • Navigating challenges with careful strategy. Effective communication and selecting the right external partners are key to success in this model. To truly benefit from this approach, companies must ensure alignment between internal teams and external experts, fostering strong relationships that lead to successful, innovative outcomes.


Understanding product development as a service

The traditional approach to product development is rapidly evolving. Enter the concept of “product development as a service,” a fresh paradigm that distinguishes itself from conventional methods by offering a more flexible, collaborative, and innovative pathway to bring new products to life. This service model allows companies to tap into external expertise and creative resources, enhancing their ability to adapt quickly to market shifts and consumer demands. Unlike the traditional in-house development approach, which often requires significant time and investment, product development as a service provides brands with access to a pool of expert advisors and creative minds who can contribute to every stage of the development process.

The advantages of this service-based development model are numerous. It enables brands to co-create with experts who have their fingers on the pulse of the latest trends, particularly when targeting the ever-elusive Gen Z demographic. This approach not only accelerates the development cycle but also ensures that the product is aligned with current consumer expectations and technological advancements. By leveraging external insights and creative strategies, brands can innovate more effectively, creating products that resonate with their target audience.

The role of product development in portfolio innovation

Innovating within a company’s portfolio is essential for staying competitive, and integrating product development as a service can be a game-changer in this regard. By adopting this approach, companies can diversify their offerings and introduce products that are not only innovative but also closely aligned with market needs and consumer preferences. This method allows brands to continuously refresh their product lines, keeping them relevant and appealing to the dynamic tastes of Gen Z consumers.

When companies engage in service-based development, they can experiment with new ideas and prototypes without the heavy investment associated with traditional product development. This flexibility opens doors to creative solutions and risk-taking, fostering an environment where innovation thrives. Moreover, by collaborating with Gen Z advisors and leveraging data-driven insights, brands can ensure their products are not only innovative but also culturally relevant, enhancing their market position and consumer engagement.

Cost efficiency and resource management

One of the significant benefits of product development as a service is the potential for cost savings and optimized resource management. Traditional product development can be resource-intensive, requiring significant investment in research, development, and marketing. However, by utilizing a service-based model, companies can streamline these processes, focusing their resources on core competencies while relying on external experts for development and innovation.

This approach reduces the need for extensive in-house teams and facilities, allowing brands to allocate resources more efficiently. Companies can avoid the overhead costs associated with maintaining large development teams and instead direct their efforts towards strategic growth and market expansion. By collaborating with external advisors, brands can also benefit from a wealth of expertise and insights, further enhancing their ability to innovate and adapt to market changes.

Challenges and considerations

While the benefits of product development as a service are substantial, companies may face challenges when adopting this model. One potential hurdle is ensuring effective communication and collaboration between internal teams and external partners. Clear communication channels and well-defined project goals are essential to ensure alignment and successful outcomes.

Additionally, companies must carefully select partners who align with their brand values and understand their target audience, particularly when aiming to connect with Gen Z consumers. This requires thorough research and vetting to find the right experts and agencies that can deliver on the brand’s vision and objectives. By addressing these challenges and fostering strong partnerships, companies can overcome obstacles and maximize the benefits of service-based development.

Ready to make your brand Gen Z-approved? Let’s start the conversation at genz@bangeri.fi.