New Product Development in Internet Companies: Prototypes and Experiments

Abstract

The goal of this thesis is to develop recommendations for product managers in Internet companies related to the use of prototype testing and experiments in new product development that is associated with high level of market uncertainty and technology complexity. Qualitative research method was used. Based on analysis of three cases of Russian-based Internet companies, set of criteria for decision about the use of prototypes and experiments was developed. It allows managers to assess if these practices could and should be used in development for their new online product. Recommendations include: comprehensive testing of product prototypes with customers or internally in the company, caution decision-making about product launch, and considering opportunity cost of experiments in after-launch product development.