---
title: "Product and service design process"
subject: "Entrepreneurship Development"
chapter: 2
key: "semester_7/entrepreneurship_development:product-service-design-process"
source: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/product-service-design-process
site: BCT Engineering
---

# Product and service design process

Entrepreneurship Development · Chapter 2: Identification of Viable Business Cases

- Asked in: year not given, 5 marks
- Video: [Product & Service Design: A Complete Beginner's Guide](https://www.youtube.com/watch?v=QSS1qNrAeZI) — Suryadi
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/entrepreneurship_development/product-service-design-process
- Whole chapter: https://www.bctengineer.com/md/semester_7/entrepreneurship_development/chapter-2

## Question

Explain the stages of designing a new product or service for a startup. How does a service differ from a product in design?

## Short answer

Design moves from idea generation, screening, concept testing, specification, prototype, testing, to commercialisation. Services differ because they are intangible, cannot be stored, and are produced and consumed together, so their design also focuses on the customer journey and people.

## Answer

**Product/service design** converts a customer need into a defined offering that can be produced and delivered.

#### Stages
1. **Idea generation:** from customers, staff, competitors, research.
2. **Idea screening:** drop ideas that do not fit the market or resources.
3. **Concept development and testing:** describe the concept and ask target customers for reaction.
4. **Specification and design:** features, materials, appearance, cost target, quality standards.
5. **Prototype:** a working model to test function and usability.
6. **Testing and refinement:** user trials, fixes, cost reduction.
7. **Commercialisation:** production or service set-up, pricing and launch.

```text
Idea -> Screen -> Concept -> Design
                              |
        Launch <- Test <- Prototype
```

#### Product vs service design
| Basis | Product | Service |
|---|---|---|
| Nature | Tangible | Intangible |
| Storage | Can be stocked | Cannot be stored |
| Production | Separate from consumption | Produced and consumed together |
| Quality | Standardised by inspection | Varies with the person delivering |
| Design focus | Features, materials | Customer journey, process, people |

**Answer:** Design moves from idea to screening, concept, specification, prototype, testing and launch; services additionally need the customer journey and staff behaviour designed because they are intangible and simultaneous.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. Which is the correct order of design stages?
   A. Idea, screening, concept, specification, prototype, testing, commercialisation
   B. Idea, prototype, screening, concept, launch
   C. Screening, idea, design, launch, testing
   D. Concept, launch, prototype, idea
   Answer: A. Design moves from idea through screening, concept, specification, prototype, testing to launch. (Key point: Design stages)

2. The purpose of idea screening is to:
   A. Build a working model
   B. Drop ideas that do not fit the market or resources
   C. Set the selling price
   D. Collect after-sales feedback
   Answer: B. Screening removes unsuitable ideas early. (Key point: Idea screening)

3. A prototype is built to:
   A. Advertise the product
   B. Raise venture capital
   C. Test function and usability
   D. Register the business
   Answer: C. A prototype is a working model to test function and usability. (Key point: Prototype)

4. Why must service design include customer journey and staff behaviour?
   A. Services can be stocked
   B. Services are standardised by inspection
   C. Services are separate from consumption
   D. Services are intangible and produced and consumed together
   Answer: D. Simultaneous production and consumption plus intangibility make people and process central. (Key point: Service vs product)

## Related in Entrepreneurship Development

- [Break-even analysis for a startup](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Abreak-even-analysis-numerical) — Entrepreneurship Development, chapter 5
- [Steps in launching a startup enterprise](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Alaunch-of-startup) — Entrepreneurship Development, chapter 5
- [Pilot testing and market feedback](https://www.bctengineer.com/question.md?key=semester_7%2Fentrepreneurship_development%3Apilot-testing-feedback) — Entrepreneurship Development, chapter 3

## Related in other subjects

- [Phases of new product design](https://www.bctengineer.com/question.md?key=semester_6%2Fmachine_design_i%3Anew-product-design-phases) — Machine Design I, chapter 3
- [Product layout versus process layout](https://www.bctengineer.com/question.md?key=semester_6%2Findustrial_engineering_and_management%3Aproduct-vs-process-layout-differences) — Industrial Engineering and Management, chapter 2
- [Steps in the design and synthesis process](https://www.bctengineer.com/question.md?key=semester_6%2Fmachine_design_i%3Adesign-process-steps) — Machine Design I, chapter 1
- [Multimedia user interface design process](https://www.bctengineer.com/question.md?key=semester_8%2Fmultimedia_system%3Aui-design-process) — Multimedia System, chapter 6, asked 2×