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[hwtrek]

2013: The year of the hardware makers

It has been a busy year for the hardware startup industry, with a range of interesting new products and emerging trends largely overshadowing innovations from technology giants, such as Samsung and Apple.

The key point to take away from this year is that groundbreaking hardware developments have become less important and the focus of the industry seen shifting toward value that can be sourced from new, creative software-hardware applications, noted Jeffrey Cheng, Program Director at Logistica Asia.

This trend, spurred on by a growing abundance of cheap sensors, has seen many startups taking existing hardware technology and teaming it with software to serve innovative applications - as demonstrated with the emergence of quantified self and smart home devices. Quantified self is a concept that helps a person to understand one’s own body through the recording of dynamic data from a range of health sensors enabled by the smartphone.

Tracking every aspect of yourself

The quantified self movement has seen a range of devices being developed to measure and analyze aspects of consumers’ daily lives, mainly orientated toward fitness and well being. These have included monitoring aspects such as posture, attention span, blood pressure and heart rate.

A major driver behind the emergence of these devices lies behind the cloud network which has developed to support them, Lucas Wang, CEO at TMI, explained. Previously hardware developers had to design gadgets which could perform three main functions - reading a data point, analyzing this data, and then displaying the information back to the user. The need to perform all these functions on one device brought limitations on functionality, size and affordability.

With the cloud network however, connected devices are liberated from having to perform all of these functions. Instead, the device simply has to perform the data reading and to send this via a user's smartphone to a cloud server.

The analysis is performed in the Cloud, and then returned to the users phone for display. By outsourcing these tasks, hardware makers have been able to produce a variety of devices with greater functionality, lower power consumption, smaller size, and at a lower price.

Such gadgets have been well received by the crowdfunding community, with notable success stories coming from the Scanadu Scout, the Misfit Shine and the uBiome which have raised nearly $3 million from Indiegogo this year.

These devices also fall under the biggest technology buzzword of the year - wearable technology, commented Amanda Wu, Senior Program Manager at Logistica Asia.

While the smartphone industry has further consolidated over the past year with the decline of Blackberry and Nokia, wearable technology has since exploded with an array of potentially disruptive innovations. In this rapidly emerging sector, startups and giants had developed a wide range of devices and even went head-to-head with competing products, such as the Pebble and Galaxy Gear smartwatches.

Miss Wu also noted that another hot trend of 2013 has been the emergence of the smart home, which has seen a host of startups introducing gadgets that aim to bring our homes into the 21st century. Rather than devising new, groundbreaking products for the home, this trend has largely manifest in greater functionality or efficiency being brought to existing lighting, heating, power and security appliances.

Such examples include the LIFX lightbulb, NEST thermostat and the Neurio power monitor – all of which pair with smartphones or tablets over WiFi to bring notifications, remote functionality and in some cases, can even be automated based on your location or daily habits.

One major development which has benefited both product designers and technology enthusiasts alike has been the emergence of faster and more affordable 3D printers. Over the past 12 months, an incredible range of printers, including the Buccaneer and the Form 1 have entered the market to serve a variety of printing needs.

While enthusiasts and hobbyists have been quick to show their support on crowdfunding platforms, small and medium-sized businesses have seen the most benefit from their development.

Previously such firms have had to rely on the costly and often timely process of sending designs to specialists and waiting for prototypes to be returned. However, as of this year, the emergence of affordable printers has allowed such firms to rapidly iterate their own prototypes in-house, saving on time and money.

Surprisingly, this liberation of firms to fulfill their own prototyping needs has not killed off the 3D printing service sector. Instead, the growing public awareness of 3D printed products has enabled companies such as Shapeways to capitalize on this interest and provide art, design, and novelty printing services for consumers, which would previously have been reserved for businesses.

Drones take to the skies

Another massive development this year has been the progression with drones, not only in terms of technology and design, but also from an overhaul of their public perception. While the same word this time last year would have brought up mostly military connotations, reading this today is likely to trigger thoughts of more civilian uses.

Mr Cheng noted that this is a key example of the filtration of military technology through to public hands. Such advancements have been driven by a number of key groups, including startups, technology and retail giants – such as Amazon, educational and research institutions and the open-source community.

The developments led by these groups have been in several areas including stability, reliability, and cost which have enabled a huge range of uses for a variety of consumers. From photographing festivals, monitoring wildlife, filming videos and spraying crops, drones have provided an affordable way to perform tasks which until now, would have relied upon the use of large and expensive aerial equipment such as helicopters and lightplanes.

Aside from this, drones have also brought all-new possibilities as seen with Amazon’s announcements of its Prime Air service and also through hobbyists’ pursuit of First Person Viewing (FPV) experience.

While the drone trend has seen great benefit come to consumers, it has also raised security concerns. For obvious security concerns, the filtration of drone technology into public hands has caused somewhat of a headache for the U.S. Federal Aviation Administration (FAA) and their respective bodies around the world, which have been struggling to keep legislation up-to-date with this year’s rapidly developing technology.

The year of the startup

With much of this year’s most exciting developments coming from new small-scale teams working on specific projects, 2013 has certainly been the year of the startup.

Much of the new innovation reaching consumers have come from startups, while major industry players like Sony, Apple and Samsung have been somewhat predictable with this year’s iteration of last year’s product.

A key part to the success of these companies has been the crowdfunding platforms that have enabled talented and creative teams to fund the development of their projects. Consequently, we have seen a year with a variety of interesting new connected devices being released.

Alex Parr.

[hwtrek]

Entering the EU market: CE certification explained

A wide range of products sold in the European Economic Area, including electronics, are subject to meeting requirements allowing them to bear the mandatory CE marking, which is an abbreviation of Conformité Européenne, meaning "European Conformity".

Companies that obtain this proof of compliance - recognized worldwide to symbolize safety and product conformity to world class standards - will find it easier to sell their products anywhere in the European Union (EU).

In this instalment of our certification series, we will look at how to apply for the CE marking and what the process entails.

Consisting of the CE-logo and, in some instances, a four-digit number identifying a notified body which evaluated the product, the CE marking signifies that a product has met relevant conformity, safety and environmental requirements, permitting sale in the European Economic Area (EEA). The EEA comprises of the 28 nations of the EU and the European Free Trade Association (EFTA) states of Norway, Iceland and Lichtenstein.

The CE marking has also been adopted by non-EU countries Switzerland and Turkey as a mandatory label through bilateral agreements.

Compliance with EU legislation

It is the responsibility of manufacturers within and outside the EU to ensure their products comply with the requirements of the relevant directives before affixing the CE marking on the products and placing them on the EU market. Importers and distributors are also legally obligated to ensure that the products they place on the market comply with the applicable requirements and do not pose a risk to the European public.

Importers are required to verify that satisfactory testing has been conducted on goods produced by manufacturers outside of the EU to ensure they meet the necessary CE requirements and that documentation is available upon request. Distributors also must demonstrate due diligence and have affirmation from the manufacturers or importers that the goods comply with EU legislation.

Importers or distributors marketing the products under their name will assume the manufacturer's responsibilities, and in turn, the legal responsibility when affixing the CE marking. As such, they must have sufficient information on the design and production of the product.

Failure to do so can result in immediate withdrawal of product from the market, a fine and/or imprisonment in circumstances involving serious violations.

Application process

The application process for the CE mark comprises of six main steps.

1. Identify the directives

The first stage of this process involves checking which of the New Approach Directives apply to your product. These directives outline specific requirements which products of different fields must meet, ranging from electromagnetic compatibility to the safety of toys and pyrotechnics. 

Your product may be subject to multiple requirements. For example, if you are manufacturing a toy which consists of electrical components, you will have to adhere to the 2006/95/EC Low Voltage Directive (LVD), the 2004/108/EC Electromagnetic Compatibility (EC) Directive, and the 2009/48/EC Toy Safety Directive.

For a full list of directives, refer to the EC New Approach Directives Guide.

2. Check the requirements

Once you identify all the directives that apply to your product, you should ensure to understand the requirements listed in them. In the case of the electronic toy, we will have to check for the EC and Low Voltage specifications, as well as the Toy Safety requirements as listed in the directives. 

For example, as outlined under Annex II of the 2009/48/EC toy safety directive, we can see a range of requirements, including:

I. Physical and mechanical properties

1. Toys and their parts and, in the case of fixed toys, their anchorages, must have the requisite mechanical strength and, where appropriate, stability to withstand the stresses to which they are subjected during use without breaking or becoming liable to distortion at the risk of causing physical injury.

IV. Electrical properties

1. Toys shall not be powered by electricity of a nominal voltage exceeding 24 volts direct current (DC) or the equivalent alternating current (AC) voltage, and their accessible parts shall not exceed 24 volts DC or the equivalent AC voltage.

Often such requirements can refer to other directives or legislation which you may not have originally listed. This is where it can be a good idea to create a map of your directives, their requirements and the legislation which they may refer to.

3. Check whether a testing body is needed

After gathering together all the information from the previous two steps, you should check whether your product will need to be examined by an approved testing facility. This will depend on your specific product, and how it conforms to the relevant directives.

Unlike the FCC application process, which requires sample products to pass testing at an authorized facility, the CE process relies more heavily on self-certification. Not all products have to pass through such external testing facilities, so you should check whether such a step is required or not.

For electromagnetic compatibility (EMC) testing, you often will not need to send samples to an external body. Instead, sending technical documentation to a testing facility to check for conformity may be satisfactory for CE marking.

To check whether your product needs to pass through an external testing facility, you should refer to the annexed information in the directive. If it appears you do need their verification, you can view a list of authorized New Approach Notified and Designated Organizations (NANDO) test facilities at the NANDO database.

In the case of the electronic toy example, none of the directives insist upon sending samples to an external testing facility, so long as the product complies with the relevant European Harmonized Standards. 

4. Test your product

After establishing the standards that your product should meet, you can begin testing for conformity. This testing will take one of two routes; sending your product to an external facility, or self-testing - with both routes ending in the manufacturer signing a Declaration of Conformity (DoC).

For self-testing, you should refer to the directive documentation where it outlines the Internal Production Control procedure, which explains the expected process. It generally involves ensuring your product operates in its intended environment without breaking, causing a hazard or interfering with other equipment.

If you are unsure about whether your product complies with a particular requirement, you can submit technical data to a notified body for checking.

If you are expecting to sell your product in other markets such as the US, you will likely have to book time at a testing facility for FCC certification and other relevant compliance testing. This is a good opportunity to check whether your chosen testing facility can check for compliance to the CE specifications and produce test results which can be used for both certifications.

5. Draw-up essential documentation

Once testing has been completed, by either yourself or the external body, you will have to draw up a Declaration of Conformity. This declares on the manufacturer's sole responsibility that the product conforms to all the relevant directives.

For the toy example, we would have to create a DoC which states the product meets all the provisions listed under the Low Voltage, EC, and Toy Safety Directives. An example of a DoC and template can be found here.

Along with drawing-up the DoC, the manufacturer must also maintain technical documentation on file for a period of 10 years after the product enters the market. This technical documentation must include the following:

Description of the product, including name, serial number and relevant designs

A list of standards which have been applied to the product.

Evidence of compliance, which can include reports from an external facility

Description and results of the testing which the product underwent

Address of the locations used for manufacture and storage of the product

This documentation is intended to ensure product traceability and must be made available to EU authorities upon request.

6. Affixing the CE marking

The final stage involves affixing the CE marking to your product. The marking should be visible on the product and have a vertical dimension no smaller than 5 mm. It is important to ensure that the dimensions of the CE marking are maintained when being affixed to the product.

If it is not possible to affix the marking directly to the product, the marking can instead be affixed to the packaging and documentation. Examples of such products include contact lenses or spectacles.

Confusion with other markings

The CE marking is sometimes confused with the alleged China Export marking, which is barely distinguishable from the EU compliance logo, as seen below.

From the perspective of manufacturers and importers, this seemingly negligible difference in the symbols can mean a great difference in product performance. Importers and distributors should ensure that their product bears the correct CE marking, and that it is backed up by documentation from the manufacturer.

Alex Parr.

[hwtrek]

Selling hardware in the US Market: UL certification explained

In this installment of our Selling Hardware to the US Market series, we will look at another important certification which you should be aware of if you plan to sell your hardware in the US - the Underwriters Laboratories (UL) safety certification.

Underwriters Laboratories (UL):

UL is a global company which has been concerned with safety regulations since 1894, and currently serves customers in over 100 countries. They perform a range of services, including safety testing, factory auditing, and issuing safety certifications governing plastics, wiring, industrial equipment, and electronics.

While gaining the UL certification might not be mandatory to permit sale of your product in the US market, acquiring it can still be of advantage.

Many municipalities in the US, and many nationwide retailers, require electronics to be certified by a Nationally Recognized Testing Laboratory (NRTL) to guarantee product safety. UL is one of the main NRTL’s, as approved by the federal Occupational Safety and Health Administration (OSHA). Choosing not to acquire certification can narrow the size of your potential market and also your sales channels - inside the US and across the world.

Certification process, time and cost:

The UL certification process breaks down into three separate stages:

Step 1: Complete a Request for Information form

First of all, you need to submit a request for information (previously named the UL Request for Quotation form. At this stage, you will select your product industry, your location, and provide a description of your product.

To ensure your product is listed correctly and that you are given an accurate quotation, you should also attach any diagrams or plans which may be of use.

Upon receiving your request, it will be assessed and UL will reply with the necessary information. This should include a price quotation and description of the service.

After accepting the quote, an UL engineer will contact you to progress to the next stage.

Step 2: Product evaluation

The engineer will discuss details of your product, outline necessary preparations prior to testing, and inform you of the sample requirements for your specific product. This is also a good opportunity to discuss any questions you have and outline any time constraints you might be working towards.

Once you have prepared according to the engineers discussion, have returned essential paperwork such as the signed application forms, Follow-Up Services form, and deposit, your product can undergo testing at an accredited UL test site.

You can send your sample products either to one of UL’s laboratories, or if you are part of a company fortunate to have your own certified test facilities, you can perform tests yourself as part of the Data Acceptance Program.

Step 3: Test results and follow-up services procedure

Depending on the results of your test, your product will either receive UL safety certification, and be permitted to bear the UL seal, or it will be referred back to you for changes. 

If it fails to meet the required standards, UL will inform you of the areas where your product fell short, and can help to further advise you as to what changes you should make in order to pass testing. 

For successful products, you will be given a detailed test report which will be used for your Follow-Up Services program. This is a mandatory program for all products bearing the UL mark, and is intended to ensure quality withholds over time.

These programs typically involve periodic factory inspections where UL products are being produced, and sampling products from the factory or open market to test for continued compliance.

To ensure you are prepared for this ongoing commitment, check their official Follow-Up Services resource.

The time and monetary cost of acquiring the UL certification can vary, just as with the FCC. The main influences on this are the type of product you plan to submit, the category it falls under, and whether or not it passes the first time.

You should leave at least 24 weeks from start to finish, and expect to pay at least $20,000 - 30,000, with costs rising further depending on the complexity of your hardware.

While it might not be mandatory to acquire UL certification, and there are other NRTL companies which you can turn to for similar safety certifications, the UL mark can help to ensure your hardware has the potential to reach as many customers as possible in the US and worldwide. Aside from this, it is also a good benefit for customers, retailers and investors to know that your product meets some of the worlds most stringent safety standards.

Alex Parr.

[hwtrek]

Selling hardware in the US market: FCC certification explained

Editor’s note: This post kicks off a new series on hardware certifications in the US and EU markets. In this series, we take a look at the major certifications hardware makers should consider obtaining before selling their products to the US and EU.

In order to sell your hardware in the US market there are several certifications you might need to acquire. These certifications ensure that the hardware aspects of your product complies to US regulations such as Electromagnetic Compliance (EMC) and Safety standards. Acquiring them can often be costly, time consuming, and a major delay for startups which have not planned for them in advance. 

In this post we will cover one of the major certifications which you should be aware of - the FCC, the process involved in acquiring it, as well as the time-scale and cost involved.

The Federal Communications Commission (FCC)

Even without knowledge of the Federal Communications Commission (FCC), you will probably recognize this symbol. No matter what country you are in right now, there is sure to be several devices around you which all bear this mark - turnover your laptop/keyboard and see. The FCC is a US government agency which governs limits for Electromagnetic Radiation (EMR) to ensure the amount of radiation emitted from a device is not harmful to people, or disruptive to other devices. 

EMR can be emitted naturally - from lightning, static electricity, and the sun, or it can be emitted from electronic devices. Depending on the field strength of the radiation emitted, other devices can be disrupted and lose functionality. An example is when your TV signal has been disrupted by some other appliances in your house such as a vacuum cleaner. 

Depending on its classification, hardware entering the US market will most likely require FCC certification, or verification. The FCC breaks devices down into two main categories, depending on the amount of radio frequency pollution they emit - Intentional Radiators and Unintentional Radiators:

Intentional Radiators emit radio waves to serve their function, and commonly include devices such as bluetooth modules, wireless routers and radios. In order to sell a device which comes under this category, you will almost certainly need to attain FCC certification.

Unintentional Radiators emit radio waves as a side effect of their primary purpose, and may include televisions, cameras, clocks. These devices commonly require FCC verification, or a Declaration of Conformity (if they connect to a PC or a TV), but in some cases they may be exempt.

Exemptions

There are certain cases where products may be exempt from FCC authorization. However, unless you have a great deal of experience here, it is best not to presume your device qualifies. You can contact a test facility with enquiries if you think your device fits one of the following exemption rules:

Emits below 1.705 MHz and does not connect to the mains grid even for charging, e.g. some sports watches.

Is an Appliance (p7, Section 15.103 d) e.g. vacuum cleaners and white goods.

Certain medical devices which are not for general sale to the public.

Devices used solely in vehicles - cars, boats, planes etc.

Low voltage devices which consume less than 6 nW.

While it might be tempting to avoid the test lab, if you believe your product qualifies for FCC exemption, you should beware that competitors might look for the opportunity to challenge this.

If a competitor challenges your position and your product is found to violate any of the regulations, you could be faced with an expensive recall and fines. You might think it is only inexperienced and smaller companies that get caught out here, but firms including Intel, Sennheiser and Motorola have all faced enforcement from the FCC.

Process, Time and Cost for FCC Certification

The FCC Verification process typically involves sending designs and several samples to an accredited test facility, which will determine whether it complies with Part 15 of the FCC regulations. If it does, they will produce the results of the test along with a Declaration of Conformity. This is a slightly simpler process than for FCC Certification, and can expect to take six to eight weeks and cost several thousand dollars.

The FCC Certification process involves sending a sample to an accredited lab for testing. Each round of testing normally takes one to two days, and a report will be sent to the FCC for review after the testing has been successfully completed. This normally takes between eight to 12 weeks, and - depending on how many rounds of testing your device undergoes - can cost from $3,000 - $5,000 right up to $10,000 - $20,000.

Despite being a certification for the US market, you will also likely see the FCC seal on a great deal of other devices which have no intention of entering the US, and may never have passed testing at a licensed lab. If you are manufacturing your device overseas, or plan to import a product you have found abroad, make sure your original design manufacturer (ODM) has acquired certification at an FCC approved institute.

Alex Parr.

[hwtrek]

Premium vs. mass market: Product strategy learned from the iPhone 5c

  As usual, the build up to this year's iPhone release was full of rumors and speculation, with the hot topic this year being the release of a new mid-ranged, $300 iPhone. Consumers were expecting to get a cheap iPhone, and Investors were hoping for a handset with potential to dominate emerging Asian markets which are currently flooded with cheap Android devices. However, after hearing about the iPhone 5c, both sides were left somewhat confused.

The iPhone 5c essentially contains the same components as the iPhone 5, but with a plastic casing. Coming in at $99 with a two-year contract or $549 without contract, the phone will replace the iPhone 5, leaving only the 5c and 5s on sale from this generation.

Many have been quick to criticize Apple for missing the mark by charging so much for their supposed mass-market phone. Aside from being too expensive, reports of Apple reducing their order quota for the phone have been hailed as a signal that Apple's strategy has already failed.

However, these critics seem to either be holding unrealistic expectations, or are overlooking the real strategy by highlighting issues such as reducing order quantity and price discounts from third-party sellers. Focusing on such details are trivial when examining Apple's strategy; third-party suppliers always run price promotions, and firms are always looking to ensure their production links to demand – which can be tricky when releasing a new product.

While there is no doubt that the iPhone 5c did not meet expectations as a disruptive innovation or a market changing budget iPhone, it seems that was not the point. Instead, in the coming months we can expect to see Apple’s move with the iPhone 5c materialize as a lesson about surfing the gap between premium versus mass product strategy.

The base of this strategy seems to be clearly re-defining last year's product in a way which creates value while also enhancing the Premium image of the latest model. This strategy acts on three levels – targeting customers, influencing swing buyers and shaping perceptions.

Market segmentation

When the iPhone 4s was first released, many customers were still buying iPhone 4 despite the strong marketing push behind the new flagship phone. The customers who purchased the iPhone 4 were doing so because they did not value the new phone enough, or their budgets would not allow it.

These customers, often known as the Late Majority, is the market segment that Apple is targeting the iPhone 5c at, without detracting value from the latest model. This strategy has been lauded by some and derided by others, and what is interesting to note is that the sales figures of the plastic handset have been widely used by both backers and critics alike to support their views.

Critics say Apple's strategy is a failure, citing the iPhone 5c's weak sales figures as evidence that people are not buying it. However, they are missing the point here. While Apple’s reduced order quantities might hint they were anticipating to sell slightly more units, the overall intention of the product is to be a late-bloomer.

Similar to the iPhone 4s, which saw the Early Adopters surging to purchase the latest model and the Late Majority coming through with orders later in the year as prices dropped and contracts expired, the iPhone 5c is likely to go a similar route, and sales of the handset is expected to flourish in mid-2014.

Product differentiation

Apple has built a reputation for selling luxury devices with strong build quality and sleek design, and this has become a boon and a bane. Apple's premium brand has restricted its ability to sell cheaper mass market products, and the closest they can come to doing this without damaging its own image is by reducing the price of last year's model.

However, with negligible physical differences between handset models, such as the iPhone 4 and iPhone 4s which only visible difference was the writing on the back of the case, many consumers in the Late Majority segment have begun questioning the need to pay more for the latest model that is indistinguishable from the previous model.

By repackaging the old phone inside a new body with a different appearance, Apple hopes to influence borderline customers to purchase the more expensive model. This helps to provide a mass-market product, while also bolstering sales of the premium product.

Shaping perceptions

By creating a visible difference between models, Apple can enhance the luxurious perception of the flagship phone. While the mass-market iPhone 5c is covered in bright, colorful plastic, Apple have introduced Gold, Silver and Space Grey backplates to the latest model. This contrast has been carefully carried through in video and print advertisements.

The iPhone 5c has been marketed as a fun product for colorful people, while the iPhone 5s pushes a luxurious perception supported by liquid gold imagery. This can be seen clearly through the different promotional videos for each product on the Apple website:

Compared with the 5s:

From this, we can see that Apple was not intending to release a cheap, $300 handset - and rightly so. To release such a product would have pleased consumers and investors hoping to flood emerging markets. However, it would have damaged the premium brand identity which Apple depends on for the long-term.

By redefining last year's technology, Apple now has greater marketing potential to target the Late Majority, a strong profit margin through cheaper materials, can influence those sitting on the fence, and can use the diversity of their product range to enhance the premium image of the more profitable flagship phone.

Alex Parr.

[hwtrek]

Putting users at the center of the product design process

Editor's note: This post kicks off a new blog series called Hardware Lessons Learnt and New Perspective. In this series, our community of makers and experts will share some of the not-so-pleasant lessons that they have gone through - so you don't have to.

This week, Amanda Wu, Senior Program Manager at Logistica Asia, shares lessons learnt from developing a 7 inch in-car monitor and explains why it is important to place the end-user at the center of the product design process.

A well-designed product is one that adds value to the user experience, instead of frustrating the consumer. Design flaws not only cause great inconvenience to the consumer, they may even lead to serious safety and health consequences.

I once led an automotive monitor project to develop a 7 inch touch panel display with fairly simple functions and featuring a Bluetooth connection. After the device sample completed the DVT (Design Verification Test) stage, the engineering team began field testing the device in the car.

"Houston, we've got a problem."

When one of the engineers sat in the driver’s seat, he discovered that the image on the monitor could not be seen clearly due to reflection on the display. The engineers, who had no previous experience with this kind of automotive product, found that the viewing angle from the perspective of the driver yielded poor image clarity as a result.

If the driver could not see the image that might be displaying critical information such as navigation, this may cause serious safety concerns. At that moment, this became a critical issue.

The design for the car was at a stage where it was too far advanced to make changes to it at that point. Thus, we could only coordinate with the LCM (LCD Module) supplier to determine the root cause of the reflection that caused the diminished viewing angle to fine tune the display visibility.

The Fix.

The supplier experimented with several different kinds of OCA (optically clear adhesive) to find the best contrast, brightness, and reflective qualities for the monitor to be used in an automotive application.

Finally, the supplier changed the touch panel OCA to bonding technology, resulting in improved clarity, less reflectivity and polarization from the driver’s viewing angle. The driver could now clearly see the information displayed on the screen.

The lack of experience with this kind of project and poor display visibility due to reflection caused a schedule delay of about two months due to the need to prepare materials and produce new DVT samples. The original lot of 100 DVT samples that were produced could not be used, and we wasted about $5,000 on this mistake.

My lesson.

From this experience, I learned that when we design a product, we need to put ourselves into the mindset and environment of the end-user to understand how they will use the device. We also need to ask ourselves what kind of situations end-users will encounter while using the product on the road. Simply using general thinking about the product design will only result in costly and time-consuming errors.

  Rough Specifications:

[hwtrek]

Which smartwatch is right for you?

This week at HWTrek we've been looking at some of the latest smartwatches which are hitting the market. Check out our comparison below to find the right watch for you：

[hwtrek]

Hardware Acceleration Programs (HAPs). What are they, and why you should enter one.

What are HAPs?

Many entrepreneurs are unaware, or underestimate the scale and sheer variety of difficulties which can arise when trying to bring a piece of hardware to market. With quality issues, manufacturing approaches, testing, certification, hidden component sourcing dangers, customs regulations, the process can be a nightmare.

This is where Hardware Acceleration Programs (HAPs) step in. By managing and offering guidance of this process, HAPs aim to streamline the journey from prototype designs to functioning mass market products. In return for this service they may either charge one-time fee, take an equity stake, or charge a small percentage of the final FOB price once the product reaches shipment.

The recent trend of crowdfunding has seen a growing demand for such programs. Despite having ingenious concepts and receiving funding, many projects struggle to navigate the next stage - leading to long or indefinite delays, waste of funds, disappointing product quality, or a total failure to materialize. Examples here can be seen with The Robot Dragonfly project which still hasn't entered the market despite received funding nearly a year ago, and OpenVisla which failed to materialize, which one of the project founders explained they “underestimated the expense and difficulty of assembling the device.“

While failing to deliver on your campaign might seem like missing your opportunity, there's some more serious concerns. Take the example of Erik Chevalier's campaign for his board-game “The Doom That Came to Atlantic City”. Despite reaching his funding target, after several delays the project eventually collapsed. Angry backers have responded by chasing their money, demanding records of where the money was spent, and reporting him to various fraud and consumer protection authorities. Just to reiterate, this project was a board-game, not a complex, innovative piece of hardware...

So, you're probably wondering what HAPs can do to help you avoid a similar situation?

Why Should You Enter A HAP

These programs offer plenty of ways to incubate and accelerate your business through the hardware stage and beyond.

Funding. Startups can often struggle to raise funds, and while many of those looking to join these programs have already sourced capital, whether crowdsourced or from selling equity stakes, HAPs often have the ability to provide a cash injection themselves, or are linked with other sources of investment.

Technical Guidance. They link entrepreneurs to seasoned professionals who can provide guidance regarding technical aspects of the products. These mentors will have tried and tested experience with hardware innovation, design for manufacturing (DFM) and design for assembly (DFA). Having access to such know-how can help deliver a better product, while also reducing wasted funds.

Connections. Industry knowledge also comes hand in hand with having strong industry connections. HAPs use these connections to bring startups together with reliable factories which fit the needs of their specific product. To understand the difficulties of finding and managing a suitable factory check out our guide of 10 Things You Should Know About Manufacturing in China.

Certifications. This experience can also come in handy when applying for certifications. Many products need certifications regarding safety or environmental purposes. Creating a fully functioning product which fails to meet meet certification standards in your target market can be a dire waste of time and funds.

Quality Control. Equally as frustrating is quality management and testing to ensure that your product is reliable before it enters the market. Unlike developing software, you can't just make an edit and hit compile to check for bug fixes, nor can you release a simple upgrade to patch any issues once it's entered the market. Hardware can be much more difficult to develop. HAPs can facilitate this, not only through quality control at the factory, but also by using relevant and sizable test groups to provide feedback regarding functionality and reliability.

Shipping. Once you've developed a viable mass market product, your customers are going to want to ensure there are no customs and shipping issues. Your shipment needs to have all the necessary paperwork to leave it's country of origin, and to enter the destination country(ies). Problems with paperwork can result in fines, and lengthy delays which threaten future business from your customers.

Go-to-market Strategy. Finally, these HAPs have all the experience and know-how to help develop strong marketing and business strategies. They can advise on appropriate revenue models, help to identify customer bases and devise effective ways to target them. A good strategy is essential to maximize and sustain the value that can be achieved from a product.

What can we take from this?

Despite many entrepreneurs assumptions that there is little distance between prototype and final mass production item, the reality is much the opposite. Asian ODMs may have come a long way over the last decade, but receiving a product from them is not as a simple as sending your prototype designs and waiting for the delivery. If you don't have the experience and thorough knowledge required, a HAP could be the perfect solution to actualize your hardware dream and avoid disaster.

Have you had any experiences with failed projects as a backer or a founder? If so we'd love to hear what went wrong, and at what point you realized you were in trouble.

Alex Parr.

[hwtrek]

Learn from the best - How to set up a killer campaign on a crowdfunding site. [part 2]

[Con't from Part 1]

  Have a Killer Video.

Undoubtedly the most important part on your campaign page is the video. On most crowd-funding sites the video is placed to be the first thing you see when opening a project. If you don't nail the video, you're going to struggle.

There's several key points that contribute to a killer video.

If you're doing a creative or artistic project, let that shine. It will help share some of your vision, display your talent and potential, and capture your viewers attention. An example which personifies this was the Star Citizen campaign video. Launched both as a private campaign on RSI and on Kickstarter – the video shows the visionary Chris Robbins immersed within his creation:

“I've never been accused of having a small vision, so I thought it was best if shared my ambition with you visually” -Chris Robbins., Kickstarter.

This unique video captured attention of the viewers and showed off the potential of the game and its designers – raising over $20,000,000 through RSI and Kickstarter.

On the other hand, if you're making a professional product, you might want to scale back the effects a little, and keep it cleaner- but not sterile.

People are cautious of pledging for projects which they think might not come to fruition – especially with KiA funding models. A grainy, shaky home-video is a perfect way to put off potential pledger’s. So be sure to set some budget aside for filming something which looks somewhat professional.

Finally, pledger's are trusting you with their money and helping realise your dreams. As such, you need to appear likeable. It can be a challenging feat to balance knowledge, modesty, and charm. Take a look at how the Buccaneer team balanced pulled this off perfectly, presenting a professional product which has mass appeal:

Social Network

Although there's been recent debate as to the extent which a successful campaign relies upon social media, it still remains a tool with great potential for campaigns – especially those hoping to reach larger funding targets.

Reaching out to your network on Facebook and Twitter is a good place to start. If you have any links to people with large followings then see if they are interested in sharing your project. Equally important can be tapping into groups which could be potentially interested in your project – if you're making a gadget which benefits car enthusiasts then reach out to them with custom posts to capture their interest. If you know anyone influential in the industry then reach out to them as well.

Social media can be an excellent way to rapidly spread the word of your project, so long as you do it right and avoid these top social media crowdfunding mistakes.

Reward Pledgers.

A standard feature across such platforms are a series of 'rewards' which encourage people to pledge. For every set amount you pledge, you become eligible for a certain, relevant reward. These can be crucial not only to entice people to pledge, but also to encourage them to pledge more money than they might have been planning on. Here's some tips:

Keep your rewards relevant. People pledging for a new gadget probably won't be interested in a picnic hamper. Instead keep them relevant, or better yet, use it as a platform to pre-sell your product. This allows you to not only receive funds, but also plot the demand and control the supply of your product. For example- $100 early-bird pledgers receive one of first shipment, $90 pledgers receive 2nd batch later in the year.

Utilise price breaks. Everyone has a different budget, so tailor your rewards accordingly. Start with low priced rewards, and build up to expensive, highly desirable ones.

See what sells. Look at others projects and see what rewards were most enticing. The same goes for re-stocking new rewards mid-campaign.

Offer a personal touch. This can be a great way to sell the higher-value rewards. Look at Zach Braff's campaign for his new film Wish I Was Here – he sold $67,500 worth of rewards just for allowing 9 people to become extras in the film, and $20,000 in rewards to allow 4 people to accompany him to the premier. The personal touch pays off as backers enjoy to be part of the projects journey. While such rewards can be difficult to think of for a physical product, think along the lines of personal engraving, meeting the team or a personal lesson on using the product.

Stretching and the 20-30% rule.

Finally you should take note of two fast emerging practices – stretching and the 20-30% rule, used to gain momentum and then keep it rolling.

The 30% Rule. People are more likely to back a project which already has some buzz about it. According to a report by Seedrs, projects which receive 30% of investment have a 90% chance of success. So utilise your network and try your hardest to reach that golden mark as early as possible.

Stretching. If your campaign is a success and you reach you funding target, you'll need to look at keeping that ball rolling. This can be done through stretching your target even further. If you were asking for $100,000, raise your target to $175,000 and introduce some new rewards. This gives new backers incentive to join as they won't feel they've arrived too late to join the party.

Overall, by taking inspiration from the best and most successful crowdfunding campaigns, these tips should help you ensure your campaign has a fighting chance. HWTrek wishes you the best of luck with your campaign!

Had any luck using any of these tips? Let us know of your experience.

Alex Parr.

[hwtrek]

Learn from the best - How to set up a killer campaign on a crowd-funding site [part 1].

Whether you're wanting to launch a new hi-tech gadget, develop a video game, release a new album or have a solution to an every-day problem, crowdfunding can be an excellent solution to raising the capital you need. The only problem is how to set up a killer campaign on a crowd-funding site? With over 90% fail rate across popular crowd-funding platforms, there's some key points you should learn from the best, most successful campaigns before starting your journey.

Use the right platform:

With all their media attention, your instincts might lead you to the likes of Kickstarter, or Indigogo if you're not a US citizen. While it's true they produce some of the highest grossing campaigns, there's actually a wide variety of different platforms to choose from. Many of these platforms are tailored towards different niches, geographical locations, funding models, or have different services.

For Musicians looking to launch a new album, or fund a new tour, there's several platforms which offer great advantages over the two giants. Pledgemusic and Sellaband have strong, interested communities which may be more useful.

If you're making a mobile app and need money for development costs and publicity, you might have more luck with Appbackr. Aside from cornering a niche community, there's great incentive schemes available here to encourage people to pledge money.

Or if your project is an innovative piece of hardware, HWTrek could be a strong option - of course, we could be biased. =) At HWTrek we realise that while many hardware start-ups are fuelled by ingenious designs, they may lack industry capabilities to put their hardware into mass production or into the market. With a careful pool of industry experts, our platform has the ability to provide successful campaigns with the tools and services needed to reach the next stage – becoming a successful product.

Aside from finding a suitable platform, you should also take into account the funding model that will be most beneficial. The two main models are as follow:

All or Nothing (AoN) – You only receive the funding if your goal has been reached. This is useful if your project actually needs a minimum amount of cash to be viable, however it can be frustrating if you you miss your target by a little amount and receive no funding.

Keep it All (KiA) – You receive the pledged amount even if you fail to reach your target. Some platforms offer this option as an alternative to AoN, but usually with a higher commission. This can be useful for more flexible projects, and especially for charity campaigns.

By considering these aspects you can try to launch your campaign on the right foot. Keep in mind that a successful campaign is relative to your needs - while everyone wants a multi-million dollar funding phenomenon, consider which platform has the realistic potential to achieve the amount of money your project needs.

Know your audience, and capture their attention.

Ensure to thoroughly research your target audience and potential consumers, then develop your campaign accordingly. The material used on your campaign page should not only relate to them, but engage and motivate them on a personal level.

You can get a head-start on this by looking at existing campaigns which share similarities with your product, or which target the same consumers. Take inspiration from the successful projects, and take warnings from the campaigns which crashed and burned.

It can be especially useful to tap into active groups or niches which your product might serve. For example, the Pebble smart watch was a $10million success story. Through their campaign video they made to sure target several key groups which their product could serve – initially reaching out to their main audiences of Android and Iphone users, they then reinforced this by targeting customers on a second level – sports enthusiasts, and finally detailing the gadgets general daily uses. The similarly successful Tiktok/LunaTik campaign followed a similar approach with their device that targets a shared customer base.

Equally as important is telling users why you are creating this product/service. 'Why' gives people a reason to buy it.

Get to the point.

People need to understand your product at soon as possible. They need to get a taste for your product while browsing, before they even open the campaign page. So get straight to the point with your project name and it's description.

Would you be interested enough to open a project simply named “Form 1” or “Canary”? Probably not. That's why these highly successful projects named their campaigns “Form 1: An affordable, professional 3D printer” & “Canary: The first smart home security device for everyone”. By reinforcing this clarity with a brief description, they inform and entice viewers, as seen below:

source:Kickstarter, Indigogo.

This helps to draw attention from the crowd-funding site itself, and also through social media platforms by including vital information in shared thumbnails:

After enticing people to the campaign page with your description, you need to explain your product. Vital information here includes explaining exactly what the product is, who its for, what stage of development its at, why you've made it, and why you are turning to crowd funding. Think back to your market research and ensure to tie this in to your target consumers/pledgers.

However, keep it concise to avoid boring viewers. To help you do this you can utilise images or...

[cont. in part 2]

[hwtrek]

10 Things You Should Know About: Manufacturing In China. [Part 2]

[cont' from Part 1]

Here are the last 5 points in our run-down of things you should know about manufacturing in China.

6. Get Samples!

Getting samples of your product is crucial. While it might cost to have samples sent over to your office from china, or to have someone based in China to inspect the samples as they come through production, it pales in comparison to the cost of receiving a whole batch of flawed, sub-standard goods. There are three main times to order samples-

First, you should get several samples made by the factory to confirm that they are capable of manufacturing the product, and to what quality they can produce it. You should bear in mind that the samples produced here will likely be made by sampling rooms with the purpose of winning an order from you. To put this into context, when ordering a sample of clothing, the factory will likely spend greater time and care on producing several sample items away from the mass production line. Generally speaking, several skilled tailors will produce the item with an overall understanding of it's construction. Use this sample as confirmation that the factory understands the product and it's specifications, don't just accept this as an exact representation of your finished item.

Second, once you are satisfied and the factory has been given the go-ahead to start the process of production, you should insist upon a second Top of Production (TOP) sample. A TOP sample will be run off the mass-production line following the process which the rest of the goods will go through, and using the exact same materials. With the clothing example, the samples here would likely be produced with many workers each performing a single stage of production. This will give you a more accurate idea of how the goods will be, and will allow you to spot any issues prior to mass production. It's important to receive such a sample as if there is a mistake at one stage in the production line, each subsequent worker might have little or no ability to recognise and correct this. Furthermore, if the workers are paid on a piece basis, they might not see any obligation to spot an error which has been made at a previous stage as they are still performing their job. Receiving, and thoroughly inspecting samples at this stage is essential.

Third, after each batch is competed, you should require samples prior to agreeing shipment of the goods. If there has been alterations during the process you can avoid costs and delays associated with returning a shipment once it has reached the export market.

7. Protect yourself against counterfeiting

China is notorious for infringing trademarks and counterfeiting goods for domestic and export purposes. While many see this as a losing battle, there are two basic precautions as advised by Dan Harris from Chinalawblog.com which you should take to protect yourself from this.

  First you should register your trademark, and do it as soon as possible. China has a first to file system, meaning the first person to register a name within China has full rights over that trademark. If someone registers your name first, your goods might be considered to infringe upon their trademark. The importance of this can be seen with Apple's $60m lesson after discovering a company named Proview Technology had already registered the iPad trademark in 2000.

  Second, once you've registered the trademark, you should then register it with customs. Dan Harris comments on the importance of this, stating that “though China Customs officials have discretion to check every outgoing shipment for trademark infringement against the Trademark Office database, in reality they only check against the Customs database. No separate registration with Customs means no enforcement by Customs.” Clearly if you want to protect yourself against counterfeit goods leaving china, you should make sure you're on the right database!

  While there are still many issues regarding courts failing to act upon infringements, or siding with Chinese firms in disputes over IP, the above steps should be considered as essential when manufacturing in China.

  8. Have a backup factory just in case.

Having a backup factory to switch production over to can be extremely useful. If your chosen factory starts to significantly under-perform, has sourcing issues or some other emergency threatening your production, a backup factory can help to save you. By switching production to a backup factory which you've already ascertained has the ability to produce goods at a rival quality, you have a safety net which could potentially save you a lot of money.

  Having an alternative supplier can also serve as a form of encouragement for your primary factory, and improve your stance in the buyer-supplier relationship. If they are aware that you are able to move your production away from them with ease, they may be more likely to perform towards the agreed standard – so long as they value your custom. 

  9. Quality control.

In order to run a successful outsourcing operation in China, you will have to strive to control the quality of the products leaving the factory. While writing damage liquidation provisions into the contract and requesting samples prior to mass production can help to defend against paying for poor quality products, a more regular and continuous approach should still be taken to avoid quality fade. Quality fade is the term given to the gradual degradation in quality as time goes back. While early batches of products might be satisfactory, over time this often falls if left unchecked. This can happen for numerous reasons:

The factory may cut corners if given the opportunity.

Skilled workers might be moved to other production lines.

Peak seasons might stretch human resources thin.

Corruption can lead managers to swapping inferior materials into the line production in order to earn money from the savings.

Running out of one component due to inefficient purchasing practices and replacing it with another substandard one.

Failing to communicate expected standards.

  A costly example of such an occurrence can be seen with the 2007 recall of over 1 million Mattel toys after their paint was found to contain dangerous levels of lead. Despite initial training and selection of appropriate materials, a toxic paint found it's way into the production line.

  In order to counter such occurrences in your factory there are a number of things you should be doing:

First, you should ensure that you and your manufacture have a clear understanding of the quality requirements for your product. If your factory's internal quality control doesn’t know what to look out for, especially if there are any unique aspects to your product, then they have no means to prevent related issues.

Second, you should also make sure that you don't rely on the factory's internal quality control as a sole means of defence against quality fade.  You should hire a third party to perform regular quality inspections regarding all aspects of production, storage, and the materials being used.

Third, you should arrange a pre-shipment inspection of the goods and the condition of their packaging. This can be performed yourself if you have the human resources and expertise to do so, or a reputable third party can be hired to do this for you. The pre-shipment check is especially important step towards damage limitation. If quality issues aren’t identified prior to shipment, it can waste a lot of time and money returning goods and waiting for a replacement.

10. Plan Your Costs Against the Rising RMB.

It's common sense to plan the costs of any new operation or activity within your business. However, when looking to set-up manufacturing in China there are many costs you must consider, both immediate and future costs. Some of the standard, expected costs are:

Initial locating, visiting and inspecting your chosen factory.

Translation services, for communication with the factory and for legal paperwork.

Materials, manufacturing and shipping costs.

3rd Party quality control, pre-shipping inspection.

Contingency, for poor factory performance or emergency – while your contract might ensure you don't pay for defective goods, you still need to ensure you can cope with any delays that might come from remaking a batch.

  While these cover the initial and routine costs that are involved with manufacturing in China, to ensure your business operation is sustainable, you should be well aware of the rising costs due to Chinas current economic climate:

  Since 2005, after criticism of artificially undervaluing its currency in order to draw foreign business, China has gradually allowed more natural appreciation of the RMB. From a rate of 1USD-8.3RMB in 2005, foreign buying power has since fallen to around 1USD-6.1RMB in the present day. This reduced purchasing power parity (PPP) essentially gives you less bang for your buck, and reduces Chinas competitiveness as a cheap manufacturing hub. With the continual growth of the Chinese economy, and with experts such as Joshua Klein Lipman suggesting in his paper – 'Law of Yuan Price: Estimating Equilibrium of the Renminbi' that the currency is still undervalued by around by around 37.5%, we can be sure that this trend is set to continue.

Aside from knowing the current cost of the materials required for your product, you should be aware of how these costs are likely to rise in the near future. The current trend has seen material costs across numerous industries rising by roughly 7% per year.

As the Chinese economy rises, so are the workers wages. The Wallstreet Journal recently reported that private-sector wages rose 14% in 2012 alone. This can have significant cost increases for your factory each year.

The main point here is that if you are looking for a sustainable manufacturing operation in China, you need to be aware of how the costs are going to change in the near future. If manufacturing your product is only just economically viable now, you're going to struggle within a few years time.

  Overall.

While there's no sure-fire way to ensure a smooth overseas operation, by following the above 10 things you should know about manufacturing in China, you should avoid some of the most common issues, and at least be prepared for the rest.

Do you have any shared experiences, are there any other important things that you would recommend people should know about manufacturing in China?

Alex Parr.

[hwtrek]

10 Things You Should Know About: Manufacturing In China. [Part 1]

  As famous as it is notorious; manufacturing in China can be a great way to minimise your production costs, however it can also be the cause of a major headache. But fear not, this 10-point run down will cover the key issues and procedures which you should prepare for in order to improve your outsourcing experience.

1. Check availability of your materials.

Before beginning the process of manufacturing your product in China, you should ensure that any materials or chemicals contained within the final product pass the concerned regulations of your export market – e.g. U.S. EPA approval. Producing a product which fails to meet the standards of your export market can be costly, but the PR damage and recall costs can be even worse if the product enters the market first. Know your product inside-and-out, and be clear on what the factory plans to use.

Equally important is checking the availability of your materials in China. You should be clear that any chemicals or materials that you need are available in China, at what cost, and the associated lead times and peak seasons of these materials.

While most materials are available in China, you should ensure that any specific chemicals needed during production are available, just because it's passed regulation in your export market doesn't mean it's been approved in China. Check to be sure.

Furthermore, aside from being able to purchase your materials, you should be aware of the peak seasons which occur – commonly around August and in the run-up to Chinese New Year. Giving your factory plenty of notice can aid smarter purchasing which can reduce your costs and ensure production can be arranged through peak times.

2. Find a factory which fits.

It might seem obvious that its important to find a good factory, but there are some key questions you need to ask in order to find the right factory. You might have found a factory with an excellent reputation for producing quality goods on time, but if they're tailored towards low-unit high-cost production, they're not going to be the best factory to complete your order of 10,000 circuit-boards. Before placing an order you should first find out:

What is their average order quantity.

Average order time scale.

Specialization – are they used to producing similar products.

Do they have graphic design abilities to aid with any packaging you might need.

Do they manufacture themselves or outsource production elsewhere.

When can you visit them – you should never purchase without inspecting the factory.

By asking these questions you can save a lot of trouble down the road. It can be especially beneficial to find a factory which has experience with producing similar goods, as they will be more likely to already conform to any audit requirements from your industry/customers. While these initial questions are key to getting your first shipments out on time and on budget, you should also be aware of the marketing and life-cycle of your product and it's compatibility to the factory, asking further questions regarding:

Social responsibility – if your USP is attached to an ethical, sustainable, environmentally friendly product, how does the factory align with this?

R&D abilities of the factory – will the factory be able to assist with, or cope with the future developments of your product line or will you outgrow them as you build more functionality or diversity into your products.

By ensuring you know the answers to all these points, you have a much better chance to find a suitable factory which you can build a strong and sustainable relationship with.

 3. Getting an accurate quotation.

When contacting potential factories with your Request for Quotation (RFQ) it is important to clearly communicate the specifications of the items. As such, you should make sure to detail the unit quantity, dimensions, material specs, preferred production method, and the packaging requirements. Aside from these physical aspects, it can also be advised to detail any tax issues, required certification, or foreign trade regulations regarding the product. By ensuring clear communication of these aspects you have a better chance of receiving an accurate quotation – you don't want to get further down the line and discover the actual costs are much higher than expected.

4.Make your contract tight!

Often firms will fail to write enough detail into their contract, instead assuming that in the event of an issue the courts will be able to read into the contract and extract what was intended or implied. While that might be the case back home, it's not the same in China. If you're manufacturing watering-cans, don't just assume that the containers are to be made waterproof – write into the contract that they have to be able to hold x-amount of water – in English and Chinese! The need for detail can not be stressed enough.

To reinforce the terms of the contract you should also ensure to carefully detail provisions  for liquidated damages. This term describes the compensation for specific breaches of the contract, often governing agreements of quality and shipping. Referring back to the watering-can example, a liquidated damages provision here would include the clause that if the cans are unable to hold x-amount of water then the manufacturer bears the cost to refund and re-make them. For items with a less critical quality requirement, a stipulation can be made to outline varying grades of quality, and a price-penalty for every grade below the target. Such terms are looked upon favourably by Chinese courts and can be an effective way to help ensure a standard of quality.

5. Keep your end of the deal once it's been made

Just as important as ensuring your manufacturer abides by the terms of the contract, is sticking to them yourself. Terms of payment and supplying IP such as designs should be outlined clearly and from the start.

If you've arranged to supply designs/details by a certain date then ensure you meet the deadline. If the factory has assigned resources to begin production at a set date but you are causing a delay with late specifications or designs, the factory may be incurring costs. The same goes for payment, if you've agreed to pay the factory within x-days of receiving the goods, then ensure your payment is within these terms.

Also, keep in mind if you make a mistake, for example an error with the specifications you've submitted and have to restart production mid-way, own up to the error. While the concept of 'losing face' is prominent in Chinese business culture, and you might often face reluctance to admit error or covering up mistakes, such practices only serve to weaken your relationship. A poor relationship often results in poor factory performance.

[... more in Part 2]

[hwtrek]

From Idea to Execution: Why Do We Need a Crowdfunding Platform for Hardware? Why HWTrek?

You have a product idea that you believe will change the world. It’s Hard.

Here and again, the oft spoken notion with regard to hardware is that is it hard. Keller Rinaudo of Romotive, the maker of Romo, told VentureBeat’s Dylan Tweney:

“It is so hard to produce stuff at scale,” Rinaudo said. “You don’t appreciate Apple or Samsung making millions of new devices every six months until you’ve tried to do it yourself.” (“Making hardware is hard – just ask Apple or Samsung,” VentureBeat, June 28, 2013)

Ben Rooney of the WSJ wrote:

“Tony Fadell, father of the iPod, was right. “There is a reason they call it hardware—it is hard,” he said at the LeWeb conference in Paris last year. But that hasn’t stopped many tech entrepreneurs from eschewing software for physical products.” (“Hardware is Hard, That’s Why They Call It Hardware,” WSJ, June 17, 2013)

Sascha Segan has this to say in PCMag:

Hardware development isn't something that can be done easily in a Silicon Valley garage or a DUMBO loft. Hardware concepts can be done, and Pebble and Ouya are both great concepts. But actually building a reliable, functional product requires expertise in supply chain management, mass hardware QA, and negotiations with component makers and assemblers that these companies by and large entirely lack.” (“Why Kickstarter’s Ouya Looks Like a Scam”, PCMag, July 12, 2012)

  Community matters.

Funding alone is not the answer to building and delivering exciting, innovative products. Community, a robust support network of peers, is necessary. The problems of manufacturing your idea to scale, at high quality standards, and delivering it on time require much more. The process to bring dreams to life in the hardware sphere can be an arduous process for Creators.

You might be asking yourself, “What distinguishes HWTrek from other crowdfunding platforms?” We’re a matching platform and online community for Creators, Experts, and Smart Customers, where disruption and innovation happens every day.

The HWTrek platform was inspired by an observation we made on other crowdfunding platforms that many hardware startups failed to get on the platform or attain their target funding, not because of their lack of creativity or feasibility but due to their inability to provide a proof of concept or failure to scale to mass production. It is through the resource of the network of design and manufacturing experts that we can facilitate and actualize the innovative hardware projects of Creators that seek to launch their product on HWTrek.

Together, we are building a community of design and manufacturing Experts at HWTrek (Hardware Trek) for Creators to take their ideas from dreams to delivery to Smart Consumers who fund the projects. The platform leverages a network of leading OEM/ODMs in Asia including some of the world’s largest such as Pegatron and Wistron. Just in case you didn’t know, Pegatron built successful hardware crowdfunding products like NEST and Ouya. In fact, HWTrek has confirmed the partnership of more than 30 individuals and companies to join our expert community.

HWTrek Experts share their knowledge of materials, design, pricing, production costs, and manufacturing with the community of Creators that seek to bring their ideas to life. Creator project teams are paired with Experts who help to ensure that their project ideas are designed and delivered at the highest quality available, on time and on budget to hardware enthusiasts excited to back promising product innovations. Experts guide the projects from concept to production, and finally delivery to hardware enthusiasts excited to back promising product innovations. These are the frequently cited risks for the hardware Creators that cause projects to fail or result in late delivery or underwhelming products for which HWTrek aims to provide a solution.

The personal interaction between Creator and Smart Consumer provides both validation of the product concept for the market, but the process of innovation by giving support to the Creators visions. The HWTrek community channels the crowd wisdom of funders and hardware enthusiasts.

This ultimately builds collective trust between Creators, Experts, and Smart Consumers within the HWTrek community. Trust in community leads to continued support of innovative ideas that we hope will change the world.

  It’s the Journey.

To begin, HWtrek is a place for Creators to set out on the journey of manufacturing their dreams with the help of highly knowledgeable Experts. It's a space for Experts to look for new products, innovators, and business opportunities. Finally, it is a site for Smart Customers, the early adopters, who are continually on the lookout for interesting gadgets that point the way to innovation.

Welcome to the Hardware Trek!

The HWTrek Team