8 Product Development Myths to Know…..Part 2

Part one of this blog series outlined hardware product development myths, basically it was four misconceptions that many entrepreneurs believe are true and hence prevent them from starting down the product development path. To recap, the myths were (1) Hardware development is prohibitively expensive, (2) Service providers and suppliers do not want to work with small companies or Entrepreneurs, (3) My idea will be stolen by my suppliers, and (4) I need to manufacture in China to be successful.  We know you’re eager to read the last four on our list. Also, if you have some of you’re own, don’t hesitate to include them in our comment section below.

(5) Hardware development takes too long
All types of new product development, including software and hardware, require considerable amounts of time for innovation and invention. Hardware development is different than software development in that tangible tools, fixtures, and automation are required but that doesn’t always mean that hardware development takes longer than software development. To minimize the amount of wasted time in any new product development project, it is best to follow a product development life cycle. With the proper deliverables in each phase and checkpoints prior to exiting and entering phases, the overall process will be streamlined using less time and less money.

(6) I need to buy a large quantity of products from my supplier
The misconception is that all suppliers require that the entrepreneur buy tens of thousands or even hundreds of thousands of products on their first order. For a custom product, we recommend that the entrepreneur only buy as many products as needed to fulfill the immediate customer demand of the product. There is a high chance that changes will be required as sales begin so keeping the inventory low will minimize the financial pain of any design changes, reworks or repairs.

There are many entrepreneurs who are “up-sold” to higher quantity orders for a lower product price. There are other entrepreneurs who are shocked to learn that a supplier is unwilling to take a low quantity order and will not to work with the customer unless a large order is placed. It is important to know the prices at all order quantities early in the relationship with the supplier. If the supplier is unwilling to fulfill low quantities in the range of 1,000 products, it might be best to switch to another supplier. Chances are high that there are hundreds of other suppliers that are capable of supplying the product and willing to work with entrepreneurs.

(7) I can’t afford to hire all the individuals on a product development team
A hardware product development team consists of development engineers, tool makers, process engineers, software engineers, technicians, fabricators, procurement engineers, buyers, program managers, among others. Many entrepreneurs try to piece together the product development team with service provides or suppliers that perform only one aspect of the product development life cycle. Since these service providers and suppliers do not provide an end-to-end product development solution from product conceptualization to manufacturing, it forces the entrepreneur to take on the burden of managing all the suppliers and the work performed. If the entrepreneur is unfamiliar with the product development life cycle, this creates an inefficient team without accountability or visibility to the tradeoffs between cost, schedule, and scope.

To create an efficient system with full accountability of the work performed, an entrepreneur should minimize the number of hand-offs throughout the cycle by hiring an end-to-end engineering, prototype, and manufacturing firm that internally handles all the hands-offs without dropping or losing any of the knowledge gained throughout phase.

(8) Hardware development isn’t as cool as software development
Without hardware, there would be no use for software. Without software, most hardware would be boring. Both hardware and software development are challenging and fun so go ahead and pursue your product idea!

Need more information? Please contact us with any questions or contact me directly at joseph.donoghue ( at ) leardon.com