You have a great idea for a new product involving smart electronic sensors and you want to transform it into a sellable product? You completed your research on the different steps involved, you spent countless hours refining this idea, and you now have drawings, specs, characteristics, etc. You feel that you could not be more prepared for this journey into a new product development?
Experience shows us that there are still some surprises that are likely to await you in this adventure. Let us explain them to you and above all, let you know how to reduce their impact.
1. Delay: It will almost always be longer than your initial estimates
Developing an idea is vastly different than selling thousands of units of a product. What most people estimate as the entire delay from idea to production is in fact the time it will take to transform your idea into a functional prototype. You must consider these further steps:
- The validation of the software is often more complex than expected – it requires stable hardware which arrives late in the process.
- You will need to obtain all needed certifications - that require booking laboratory time and paperwork – you are not alone needing their services.
- There may be delays in the supply chain - a product cannot be produced unless you have every component ready.
- Plastic tooling and validation take many weeks – this is often seriously underestimated due to tolerance adjustments or unforeseen cosmetic issues.
- Your manufacturing partner might have bigger orders to cater to before your project gets on the manufacturing line. You are starting up, others may be in full production.
What can be done?
Throw all the money you can at the problem to speed things up? Not really!
Although delays will tend to be longer than what you first expect, there are strategies that help keep the progress on track and as short as possible!
Those methods may even save you some money.
You can, for example :
- leverage pre-certified modules
- perform pre-qualifications tests
- perform pre-scans for your certifications.
This will avoid surprises and unforeseen delays. You do not have to wait for a prototype to be fully working before you address your supply chain validation, build up component stock, etc.
Anticipating the final products, materials and processes will help you minimize your time to enter mass production and your entry in the market.
Be aware of development companies who may play on words to get your business. For them, a “product” may only mean a functional system. There are no shortcuts in smart product development, just careful planning, and smart execution.
2. Be specific: The Importance of Clear Requirements
When thinking about your new product, everything may be truly clear in your head: it needs to be robust, have a long battery life. But what is robust for you? How many hours does it take to fully recharge the battery? Non-specialists have a hard time translating those key characteristics into measurable units and clear engineering goals that can be shared with various stakeholders.
What can you do:
- Accelerate feasibility analysis.
- Quickly find system-level limitations.
- Address them at the onset.
At Motsai, we accompany the product development steps by translating high-level requirements into clear and measurable objectives. We also do our best to explain why they have to be defined in this manner. We can then calculate, model, and project product performance based on technology datasheet and empirical measurements. This translates qualitative product-level requirements into standardized and concise metrics that we can measure and either it meets the specifications or fails to meet those specifications. It is the same criteria for everyone and we can repeat this validation all the way to manufacturing.
It is almost impossible to ensure consistent validation with the vague requirement that the product should simply be “robust”. Should the prototype be tested for its water resistance or should it be given to a 3-year-old to see if he can break it? The product may not be developed properly due to imprecise requirements.
3. Confidentiality: You will have to trust someone with your secrets
You cannot choose a partner to develop your product without explaining every detail about it. There exist legal mechanisms to protect your inventions and selective disclosure. Also, be aware that what you think could be a novel idea that no one ever considered, it is more likely that you will have to navigate a large sea of existing products or ideas that share some similarity as part of the patent landscape.
You are under no obligation to tell everything to possible partners at the first email or phone call, but you should be able to explain your project in high level terms without compromising its integrity. The next step would be to establish a confidentiality agreement in writing, and have it executed before you pursue the detailed discussions.
If you find yourself incapable of very precisely describing what your product will be, ask yourself some questions before continuing the process. Work on defining it in the best terms possible with your understanding of the technology.
After all, if your partner is not able to have a clear idea of the product and its features, how can he help you develop a really good product?
What can be done:
At first, check that the inventions are legally protectable? Since no one can work in total isolation and you will need to establish trust with many partners (development, financing, distribution, etc.), working with help from a legal advisor to protect your inventions is a good step in establishing a solid base.
At Motsai, it is part of our process to assist you if you wish to work with patent firms to create intellectual property protection. Even if you are missing an NDA, we will provide you with a template that you can use to get started in confidence.
4. Budget: You may be 33% of the way when you think you are done
Having a prototype that works and doing the transition to the next step, which is your Engineering Validation and Test (EVT) unit, represents a lot of work, time, and money invested in your new product. Now that you have it on hand, you may think that the journey is over. An EVT unit validates that your product meets all the specifications. It will look like a real product and should convince your investors, partners or customers that your product works and meets their needs.
Be careful though, as it is NOT yet a finished product. This validated design is likely to be only 1/3 of the way to the completed product. The other 2/3 resides in the production (tooling, testing, final qualification, and certification) and its commercialisation. Some would even argue that the commercialisation phases are among the most important cost barriers as you need to develop the branding (hopefully the earlier phases included some of that as part of the product design), market awareness, distribution, and sales channels, among other things.
You may be among the lucky ones who had a successful crowdfunding campaign, so you already have some of the visibility established. In that case, you may now have pressure to deliver what you promised. Hopefully, what you promised follows the laws of physics…
Did you consider qualification, certifications, or marketing in your analysis to put a new product on the market?
What can be done?
The good news is that you do not need to have 100% of the budget ready before beginning your product development. In fact, having a tangible prototype with a good look and feel and strong market demand can help raise a lot of funds, much more than with only a fancy presentation.
Do not fear this step, in the technology world calls it “crossing the chasm”. The only thing you can truly do to ease this transition, is to be surrounded by the right people and partners and be mindful of all the steps that exist, and which cannot be avoided. Facing reality is the only way out of this complex process.
5. Manufacturing partner: a complex selection process
It is hard to find a suitable manufacturing partner for your new product. The process is complex and costly as it involves many levels of analysis. Each manufacturer has their own speciality and they may not cover all your needs. You need to qualify a particular category of manufacturing partner to match your product and its industry. You also need to define the entry and exit elements. Do you enter only raw materials or do you have subassemblies coming from other manufacturing partners? You will also decide if you wish to work domestically or using an overseas partner. It is required to identify the proper fit for your product, business model and expectations.
Make sure to select the right ‘Tier’ of production partners. Use one with a size comparable to your needs and to your market scale. It is not wise to aim at using the biggest and highest production volume factory if you have a small project. Your very limited usage of their production capacity will translate into very high setup cost as you will be in the way of high-volume production projects. If you make 1000 units a month and use a line that can build that volume in a few minutes, you’re just out of your league.
A particularly important step to understand is the type of business model you wish to establish with your manufacturer:
- OEM
- ODM
- Fully In-house