Accelerating Hardware Development: Ideation and Engineering
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The document discusses the challenges and high failure rates in hardware startups, highlighting that 97% of these initiatives fail without a significant exit. It identifies key issues such as misunderstood product development roadmaps, underdeveloped ideation, and lack of design and engineering resources as reasons for failure. Surcle proposes a crowdsourcing approach to hardware development, leveraging a network of manufacturers and engineers to expedite the process and improve outcomes.
Accelerating Hardware Development: Ideation and Engineering
- 1. Crowdsourcing Hardware Products to Life ©2018SURCLE. ALL RIGHTS RESERVED. CONFIDENTIAL NOT FOR DISTRIBUTION. Design it. Source it. Build it.
- 2. Let’s Talk Hardware Massive increase in funding for new hardware development initiatives and startups due togrowth ofemerging technology in: • IoT • Robotics • Autonomous Vehicles • MedicalDevices • Networking / Communications ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION.
- 3. ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. But, Outlook is… Bleak • CB Report identified and interviewed nearly 400 failed hardware companies • 97% of hardware products/startups ultimately fail or fizzle out without a large exit • This is a significantly higher rate of failure than is seen by tech startups as a whole
- 4. ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. State of Hardware • Limited toin-house engineering team • Stalled projects due tolack of expertise, bandwidth, &process • Complexprocess for project progression • Limited bandwidth for exploring new revenue streams, partnerships • Excess capacitydue tomisappropriation ofresources Hardware Today Hardware Tomorrow • Expandexpertise of available resources without hiring FTEs • Bring agilemethodology tohardware development • Roadmapthat isfocused on outcomes rather than outputs • Leverage ecosystem tobring value toinhabitants and potential partners outside of their core competency • Discover potential opportunities for additional business
- 5. Hardware Product Life Cycle ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION.
- 6. Ideation to Design/Engineering ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. Key Issues: • Misunderstood Product Development Roadmap • Underdeveloped Ideation • Lackof Design &EngineeringResources
- 7. Why Hardware Initiatives Fail ©2018 SURCLE.ALLRIGHTSRESERVED.CONFIDENTIALNOTFORDISTRIBUTION. Underestimating Product Development Roadmap • Product development is laborious, complicated, and expensive • Estimating time/cost requiredfor a successful launchis extremely difficult, even for experienceddevelopers • Unexpected challenges will tax resources and cripple time to market
- 8. Why Hardware Initiatives Fail ©2018 SURCLE.ALLRIGHTSRESERVED.CONFIDENTIALNOTFORDISTRIBUTION. Underdeveloped Ideation Process • Problem statement is not clearly defined, so results are equally vague • Lack of meaningful execution to refine product idea • False assumption that successful ideation will guaranteea new business or product idea • Wrong expectations for actionable proof of concept
- 9. Why Hardware Initiatives Fail ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. Lack of Design & Engineering Resources • Overtaxedresources = subpar product design &engineering • Inadequate expertise = subpar product design &engineering, also leads to DFM issues • Interim resource shuffling, i.e.: mid-project movement • Dual workflow is crammed into one, resulting in additional complications
- 10. ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. Bring Your Product to Market. Faster Surcleutilizes a global networkof contract manufacturers, engineers, and partnerships to provide a blend of services: CROWDSOURCING Utilizeour crowdtoideate, develop, andvalidate proof of concepts MATCHMAKING Acquire key resources andpersonnel matched toyourproject requirements MARKETPLACE Execute yourproject via snapshot submissions fromcompeting firms
- 11. ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. Accelerate Hardware Development in Any Phase
- 12. ©2018 SURCLE. ALLRIGHTS RESERVED.CONFIDENTIAL NOT FOR DISTRIBUTION. The Infamous Cliché Hardware is hard, and onewins by building products at scale aroundtruly differentiated (and protected) technology, strong teams that know how to develop, manufacture, and distribute hardware products, and building brands and business models that can build affiliation beyond one-off sale. “ “ ––Bilal Zuberi of Lux Capital
- 13. Let Our Crowd Engineer Your Solution. Faster. THANK YOU ©2018 SURCLE. ALL RIGHTS RESERVED. CONFIDENTIAL NOT FOR DISTRIBUTION.
Editor's Notes
- #4: *Note, companies could select multiple reasons in original survey, so the % will not add to 100
- #8: Developing a new product is a PAIN IN THE ASS. Product development is laborious, complicated, and expensive, so much so that even big tech companies and experienced developers struggle to estimate the time and cost required for a successful launch. Unexpected challenges can tax your resources and cripple your time to market. And guess what? They are practically guaranteed to occur.
- #9: Problem statement is not clearly defined, so results are equally vague Execution upon ideas does not always happen. Companies run ideation to amass tons of ideas, and then the suggestion box is put away because a fire came up in existing products Wrong expectations in that ideation will guarantee a new business / product idea
- #10: Overtaxed resources = subpar product design & engineering Inadequate expertise = subpar product design & engineering Combine the two, and you’re in trouble. Allocation of resources – mid project movement results in development gaps that, if not carefully annotated, become lost during process Make it work and make it beautiful at the same time vs separate flows?
- #13: If nothing else, this is your takeaway for the day. Hardware is only hard if you underestimate the process. And make no mistake, with the wrong people scoping your project, hardware development becomes an absolute nightmare to deal with at each step of the development lifecycle. With the right teams and the right level of preparation across the right ecosystem, hardware can be a successful venture.