What’s the difference between software and hardware development?
The Agile Manifesto was created in 2001 by 17 software developers at a ski lodge in Utah. It sounds like the customary vacation that somehow turned into a work trip. But thank goodness it did because Agile provides the framework for teams to efficiently bring software products to market. It advocates adaptive planning, evolutionary development, early delivery, continual improvement, and encourages rapid and flexible response to change. Building software products is inherently unpredictable, and the Agile methodology is meant to help teams avoid costly blunders as a result.
But what if you actually have to make a product with machines, materials, and those things called your hands? Some of you may have forgotten that was possible, just like those random kids from Back to the Future II. My guess is both those kids majored in mechanical engineering in college after their stint in Hollywood. I dare you to google it!
In 2015, Elaine Chen, founder of ConceptSpring and Senior Lecturer at the MIT School of Management, published a book on how to bring a hardware product to market. Elaine highlights why the hardware development process is so different than software, and the common pitfalls to avoid. The representation of her staged, product and manufacturing development approach, is shown below.
If we compare the two images above, it’s clear how different the Agile methodology and Elaine’s hardware development model are. The Agile framework allows for a constant build, test, adjust mindset, wherein Elaine’s model, there is a clear divide between when to focus on product development and when to start working towards manufacturing. So what are some of the more specific differences?
MVPs/Prototypes
Software
Teams can build wireframes and MVPs for curated audiences within an initial target market in days. Useful feedback about key features and customer experience is more valuable than the risk of early users uncovering issues with the product. If adjustments need to be made to the product, changes can be pushed to current users regardless of location.
Hardware
To acquire the same amount of user feedback, teams need enough materials and manufacturing capabilities to create multiple ‘duct tape’ prototypes for a customer trial. Feedback needs to be gathered in person and cannot be sourced through online testing platforms. This typically takes months instead of days or weeks.
Skills
Software
If the core technology is accepted practice, highly skilled developers can be sourced from individuals or development firms to design and build the product. A development firm will usually have every skill set needed to support the entrepreneur from MVP to launch.
Hardware
A hardware team could potentially need a whole host of partners and talent. These could range from research organizations, supply chain, manufacturing, warehouse space, shipping, inspection, on-site customer service, and the list goes on. Each one of these comes with their own set of risks to navigate.
Costs
Software
The significant costs associated with software development are the hours needed to code and design the product. The more complex the software is, the more time it takes for the developer to complete the project, and the price goes up. This technical labor can be utilized to build everything from an MVP to a full-scale product launch.
Hardware
Depending on the needs of the product, fixed and variable costs required to reach a mass production level similar to software are endless. At the most basic level, the materials to build each product could be cost-prohibitive for an entrepreneur looking to bootstrap early on. Specialized tooling and manufacturing partnerships are needed for an initial beta run and based on location, there may not be any options available close by.
Building something into physical existence is remarkably hard. Heck, why do you think it feels so good to fix that old lawnmower or make a coffee table? Of course, you could argue the same feeling of accomplishment is obtainable through building a software product. But I’ll contest there is just something different about willing a physical product to life. You might not be able to put your finger on it, but that’s the way it is. So the next time you crack a beer to celebrate the installation of that new door handle, make sure to ask yourself what’s next.