by pat

Just read an interesting post about designing products with a hardware component as opposed to only software as a way to improve success with high volume consumer products.

Key points were:

  • Hardware products allow for better margin
  • More players can coexist in a market that is hardware-based
  • Readily accessible offshore manufacturing is making it easier to compete on cost
  • Break-even can happen faster that with software-only plays

Patents do allow hardware to be a barrier to entry and as such, bolster this argument. On the other hand if a consumer product is truly successful, clones are sure to emerge.

In working with industrial companies I see a slightly different dynamic, most likely due to the higher cost of products sold to OEMs and Corporations as opposed to consumers.

In this market:

  • Unique solutions that save time, money and improve overall operations sell well
  • Time to market is crucial, late products lose significant market share
  • Manufacturers are will to use commercial off the shelf hardware (COTS) to save time to market
  • Cost reduction becomes more important as volumes increase

Please let me know what you think


Leave a Repl​​​​​y

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}