What is product development?
Product development is the process of
Identifying user needs/desires
Translating those needs/desires into specifications
Designing a product/system/experience that you think will meet those specifications
Verifying your design does indeed meet the specifications described in step 2.
Validating that meeting the specifications in step 2 means you address the needs/desires in step 1.
Repeat until you think your product is good enough to launch.
Launch.
Pro tip:
It sucks hard finding out late in the game that your "Step 2 Specifications" don't map well to the "Step 1 needs/desires". Build a lot of prototypes early and get them out in front of users so you have confidence in the Step 1.