Learn how to use a product roadmap to plan, optimize, and execute your hardware product development and launch while managing your manufacturing costs.

After all the assumptions are done one must realise that ‘what you don’t know, you don’t know !’ Build in a 25-30% upside in costs and downside in revenues after all elements have been assumptions have been factored … and see if the model works. If it does then you are good to go!

How can you use a product roadmap to manage manufacturing costs for a hardware startup?

Manufacturing costs can make or break a hardware startup. You need to plan ahead, optimize your design, and negotiate with suppliers to avoid overspending or underdelivering. A product roadmap can help you manage your manufacturing costs by aligning your vision, goals, and resources. Here are some tips on how to use a product roadmap to manage manufacturing costs for a hardware startup.

1 Define your value proposition

Your value proposition is the core benefit that your product offers to your customers. It should be clear, concise, and compelling. Your value proposition should guide your product roadmap and help you prioritize the features and functions that matter most to your target market. By focusing on your value proposition, you can avoid adding unnecessary complexity or cost to your product.

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SALMAN ENVER

Consultant for Hydraulics , Automation and Robotic systems (reviewing solutions, designs and roadmaps),
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My value proposition lies in delivering advanced natural language understanding and generation capabilities, offering a seamless and intuitive experience for users. I excel in tasks ranging from comprehending and interpreting the nuances of human language to efficiently processing and generating large volumes of text. My versatility extends to various use cases, including information retrieval, language translation, creative content generation, and problem-solving. With continuous learning informed by a diverse range of sources up until my last training cut-off in January 2022, I ensure up-to-date knowledge across a broad spectrum of topics. Businesses and developers can benefit from my scalability.

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Leong Kiat Tay

Back to Digital Transformation segment.
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One important thing I gained from Experience is about collaboration with Developers first understanding their passions and abilities, followed by going to the target audience and match the Product Roadmap. This insight was about 15 years ago when I was in Kodak Eastman as a APR product specialist. However now and currently some marketing experts or gurus are calling it “User Experience”! Just marketing lingo. Fundamentally the concept is the same. even for current AI and in future. Input = Output. With agile project management, a projected Product Roadmap need to have a lot of room for fine tuning along the way.

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2 Estimate your costs and revenues

Your product roadmap should include realistic estimates of your costs and revenues for each stage of development and launch. You should consider the costs of materials, labor, equipment, packaging, shipping, marketing, and other expenses. You should also project your revenues based on your pricing strategy, market size, and customer demand. By estimating your costs and revenues, you can set realistic goals and budgets for your product roadmap.

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Alok Kohli

Founder & CEO @ 40perbeat | Scaling offline presence for FMCG brands | ex. Pepsico, Marico, Coca-Cola
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After all the assumptions are done one must realise that ‘what you don’t know, you don’t know !’ Build in a 25-30% upside in costs and downside in revenues after all elements have been assumptions have been factored … and see if the model works. If it does then you are good to go!

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Leong Kiat Tay

Back to Digital Transformation segment.
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Speaking from a person who specialises in niche market product, one very interesting point is to get insight from the target market including regional culture for buy in. Every cluster need to be taken in perfect consideration of their needs and don’t. Totally up will give you a perfect idea of “sell and dump”. No product that currently produced in this Big Economy cannot be sold. Is always about the right pricing in the right market. After all assumptions, to roll out you need expertise to test the right value proposition in the right market. Value proposition is always the key to better returns of your products, hardware and software the same.

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3 Validate your assumptions

Your product roadmap is based on assumptions about your customers, competitors, and market conditions. You need to validate these assumptions with data and feedback. You can use various methods, such as surveys, interviews, prototypes, beta testing, and analytics, to test your product idea and features with your target audience. By validating your assumptions, you can reduce the risk of wasting time and money on building something that nobody wants or needs.

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4 Optimize your design

Your product design can have a significant impact on your manufacturing costs. You need to optimize your design for functionality, usability, and aesthetics, but also for manufacturability, scalability, and sustainability. You can use design tools, such as CAD, 3D printing, and simulation, to create and refine your product design. You can also apply design principles, such as modularity, standardization, and simplification, to reduce the number of parts, materials, and processes involved in making your product.

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5 Negotiate with suppliers

Your suppliers are key partners in your product roadmap. You need to negotiate with them to get the best quality, price, and delivery terms for your product components and materials. You should research and compare different suppliers, evaluate their capabilities and reputation, and establish long-term relationships with them. You should also communicate your expectations and requirements clearly and monitor their performance regularly. By negotiating with suppliers, you can secure your supply chain and optimize your manufacturing costs.

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6 Review and update your roadmap

Your product roadmap is not a static document. It is a dynamic tool that reflects your learning and adaptation. You need to review and update your roadmap regularly to account for changes in your internal and external environment. You should track your progress, measure your results, and collect feedback from your stakeholders. You should also identify and address any issues, risks, or opportunities that arise along the way. By reviewing and updating your roadmap, you can keep your product development on track and on budget.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you use a product roadmap to manage manufacturing costs for a hardware startup?

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1 Define your value proposition

2 Estimate your costs and revenues

3 Validate your assumptions

4 Optimize your design

5 Negotiate with suppliers

6 Review and update your roadmap

7 Here’s what else to consider

Startup Development

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How can you use a product roadmap to manage manufacturing costs for a hardware startup?

1

2

3

4

5

6

7

1 Define your value proposition

2 Estimate your costs and revenues

3 Validate your assumptions

4 Optimize your design

5 Negotiate with suppliers

6 Review and update your roadmap

7 Here’s what else to consider

Startup Development

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