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Workshop 7- Lean Hardware
This project has received funding from the European Union’s Horizon2020 research and innovation programme under grantagreement No 780460
Trainers
Location
Date
Helping today’s researchers
create tomorrow’s enterprises

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H2020 GA #780460
Rules for the workshop
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No question is a silly question
What is said in the room stays
in the room
Support and
challenge each
other

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H2020 GA #780460
General information
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o Workshop length – 4 hours o Coffee break – 20 minutes o Slide availability

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H2020 GA #780460
Agenda
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Intro – Lean Hardware methodology
Waterfall vs lean when building hardware
Risks and challenges in Lean Hardware
Lifecycle for a hardware startup
Lean Hardware startups and funding
Playing a game
Discussion
Conclusion

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Learning objectives
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Understand the differences
between Waterfall and Lean
and/or Agile methods for
building hardware
Test the knowledge about how
to build a hardware minimum
viable prototype for
manufacturing
Discuss if Lean methodology is
suitable for building hardware
products in hardware startups:
Risks and challenges

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H2020 GA #780460
Target audience
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ICT researchers and
professors
Makers Roboticists, electronic,
computer science and
automation systems
engineers, among others

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Intro – Lean Hardware methodology
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o Lean main purpose: Reducing waste and delivering superior value to customers.
When creating a startup: Using Lean Canvas
instead of Business Model Canvas.

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Intro – Lean Hardware methodology
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Not only defining potential target customers is essential
but also defining who the early adopters are.
Lean Canvas Business Model Canvas

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Intro – Lean Hardware methodology
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If your startup is being born, you do not define key
partners yet, but you need to identify the main problems
(pains) that your potential customers have.
Lean Canvas Business Model Canvas

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Intro – Lean Hardware methodology
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Define why you are different from other proposition.
What value are you adding?
Lean Canvas Business Model Canvas

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H2020 GA #780460
Intro – Lean Hardware methodology
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If your startup is being born, you do not define key
activities yet, but you need to define the solution as pills
for potential customers pains.
Lean Canvas Business Model Canvas

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H2020 GA #780460
Intro – Lean Hardware methodology
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If your startup is being born, you do not define key
resources yet, but you need to define the which key
activities is necessary to measure: Use metrics for
measuring such activities.
Lean Canvas Business Model Canvas

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Intro – Lean Hardware methodology
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What feature in your productcould not currently
easily copied or bought?
Lean Canvas Business Model Canvas

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H2020 GA #780460
Waterfall vs lean when building hardware
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o Product development of any kind is plagued by numerous unknown unknowns.
o Product concept, business needs, and market drivers may shift dramatically after
development starts.
o Agile methodology in software development has brought many advantages.
o Minimum time to market. High value requests developed and delivered faster and
higher probability of meeting customer needs.

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H2020 GA #780460
Waterfall vs lean when building hardware
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Comparison between Agile and Waterfall (traditional) methods
Sprint concept in Agile methods
Iterations, or short
development
cycles of uniform length (two to
four weeks), on a just-in-time
basis

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AGILE PARADIGM IN SOFTWARE DEVELOPMENT
o Many testable components: Agile processes encourage division of product scope
into fine-grained pieces for developing and validating as fast as possible.
o An Agile process is one that incorporates the principles of the Agile Manifesto.
Individuals and interactions
Working software
Customer collaboration
Responding to change
Processes and tools
Comprehensive documentation
Contract negotiation
Following a plan
over
Agile Traditional
Waterfall vs lean when building hardware

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Software development Hardware development
Rewriting
software is easy
Risks and challenges in Lean Hardware

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AGILE PARADIGM IN HARDWARE DEVELOPMENT
Risks and challenges in Lean Hardware
o Agile methods: Is it possible to apply them to hardware development?
IN
SOFTWARE
IN
HARDWARE
Product owners are
not developers
First prototypes
focused on users
Two or three weeks
sprints
Change is
cheap
Product owners
are developers
Focused on what the product does
instead of the user experience
Test in the
middle is difficult
Strict process models
meeting specific
compliance standards
Change is
expensive
Testing is
easy

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AGILE PARADIGM IN HARDWARE DEVELOPMENT
Risks and challenges in Lean Hardware
o Agile methods: It is possible to apply them to hardware development:
o Adapting Agile paradigm for considering hardware special features.
o Focusing on functionality instead of external design.
o Modular design with connected standard independent components makes developing
and testing easier.
o Finding suitable early adopters is a key issue.

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Risks and challenges in Lean Hardware
o Lean Hardware methodology (Agile paradigm inspiration):
ü Answer the question: What people expects. Put the users in the centre of the process.
ü Fast iterations of LEARN->BUILD->MEASURE.
Stage 1: Ask potential customers.
Stage 2: Build a hardware minimum viable product (HMVP).
Stage 3: Getting an alpha version.
Stage 5: Improving the product.
Stage 4: Getting a beta version.
Stage 6: Final product.

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Risks and challenges in Lean Hardware
o Risks when applying Lean Hardware paradigm
o When “asking potential customers”: More difficult to get early adopters because a hardware
startup is proposing a physical device as idea.
o When “building a hardware minimum viable product”: Difficulties to obtain a prototype for
early adopters and test them.
o When repeating the alpha-beta cycles: Minimize economic cost.
o When improving the product and getting the final product: Bureaucratic aspects and
regulation should be considered.

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Lifecycle for a Hardware startup

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Lean Hardware startups and funding
o Costs for developing hardware is higher than for developing software.
o Minimum viable prototype needs components that it is necessary to buy.
o A provider is needed even in the very firsts steps of development.
o A development kit is needed for integration of components and testing.
o Software design is also often needed: Firmware.
o Provisional external design is made by a third-party or by developers themselves: 3D
printing technology is often needed.

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Lean Hardware startups and funding
o When to get funding and who could finance in each stage.
Stage Main funding sources
Concept Difficult. Investors needs to see something.
Minimum Viable Product (MVP)
Moderately difficult. Investors could see the product as the final
version. Crowdfunding is risky (competitors could copy). Family and
friends. Awards. Grants.
Complete Functional Product (CFP)
Easier. Investors could see a product that looks well. Angels investors.
Family and friends. Crowdfunding. Grants. Awards.
Design for Manufacture (DFM) Easier. Crowdfunding. Suitable if you have very early adopters.
First Factory Run (FFR)
Easier. Crowdfunding. Pre-orders. Angel investors. Accelerators.
Venture capitalists.
Retail Easier. Investors. Venture capital.

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Solving doubts!
A little rest for asking
questions and solving
doubts about theoretical
aspects!
20 minutes

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Playing a game
For testing your knowledge!

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Playing a game
Telling the story…
“You are a group of ICT researchers and
makers that have some wonderful ideas in
your mind about how to create an
intelligent device for helping people to
take care of pets…”

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Playing a game
Telling the story…
“You have thought about a smart electronic pet feeder
with multiple features for dogs’ owners”
“Maybe the device could also include a
water tank and a ball launcher for playing”

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Playing a game
Telling the story…
A device that integrates several components used by owners…

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Playing a game
Telling the story…
A device that integrates several components used by owners…
…Remotely controlled

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Playing a game
Creating teams…
5 or 6 people as maximum

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Playing a game
Creating teams…
Each team represents the
group of makers that want to
create a hardware startup for
manufacturing the “wonderful
pet feeder”.

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Playing a game
During the game…
Each team will “make a story” or “track a path” from
the idea to the manufactured product by taking
decisions during the game, with the purpose of
successfully ending the process.

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Playing a game
Materials
o A moderator leads the game for teams to create their stories.
o At the beginning, teams have a calendar, fake money and tools for annotation.
o Teams get cards during the game that describe the story or path followed.
o Teams also win points and funding, and spend money during the game,
according to the decisions taken.
o Luck also plays a role during the game.

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Playing a game
Cards X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
Z
…
X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
… V
F
X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
…
a b c
Three types:

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Playing a game
Cards X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
…
c
o Each card defines a stage in the game, that is, a part of the
story (or the path), followedby each team.
o The card always shows a number and the title and the
description of the stage. Moreover, the team can annotate the
spent money and time consumed until that moment.
o The card optionally shows the tools that could be used during
the stage and if it is possible to get funding in that moment.

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Playing a game
Cards X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
…
c
o Type c cards define the current stage and the moderator will
ask each team to select a new card from a set of them that
define the following stage. As teams select specific cards, a
particular path towards the end of the process is built.

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Playing a game
Cards X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
… V
F
b
o Type b cards also define the current stage. Every time a team
gets this kind of card, the moderator should throw a pair of dices
to decide which stage (represented by a card with number F or
by a card with number V), will be the next for the team.

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Playing a game
Cards X
TITLE OF THE STAGE
Description of the
stage.
x y
Team info
Spent money:
Time consumed:
Z
…
a
o Type a cards define the current stage but, in this case, the
following stage (represented by a card with number Z), is
already defined.

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Playing a game
Rules
o The game starts when the moderator gives the first card to each team. Such card defines the
stage 0, and it is the same for all the teams.
o Moderator allows teams to get one card in each round.
o During a round, teams should decide if tools are used (this consumes money and time), and if
funding is got. Moderator will explain which tools and funding means are available.
o When a team has a card of type c, the moderator will offer several possible cards and the team
should select one of them. The spokesman of each team should explain the decision to the rest of
participants.

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Playing a game
Rules
o When a team has a card of type b, the moderator will throw a pair of dices and, according to
the obtained result, a new card (defining the following stage), will be given to the team.
o When a team has a card of type a, the following stage is already defined in the card. Therefore,
the moderator will give the corresponding card to the team.
o When all the teams have received a new card defining a new stage, another round starts and a
punctuation is assigned by the moderator according the received card.
o At the end of the game and according to the obtained punctuation the moderator will
determine if the startup is or not successful.

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Playing a game
Now, let’s play!

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Coffee break
After playing, take a rest!

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Discussion
Now, it is time for discussion.
All the participants are invited to
actively participate!!
Please, feel free to concisely express your opinion!!

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Discussion
o Time to describe your own hardware products…

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Discussion
o Time to describe your own hardware products…
o Are you satisfied with the result of the game?

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Discussion
o Time to describe your own hardware products…
o Have you applied or would you apply Lean Hardware for
your product development?
o Are you satisfied with the result of the game?

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Discussion
o Time to describe your own hardware products…
o Have you applied or would you apply Lean Hardware for
your product development?
o What is your opinion about Lean Hardware methodology?
o Are you satisfied with the result of the game?

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Discussion
o Do you think it is easy to apply Lean Hardware to the
development of your product?

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Discussion
o Do you think it is easy to apply Lean Hardware to the
development of your product?
o What do you know about third-parties for factoring and
manufacturing?

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Discussion
o Do you think it is easy to apply Lean Hardware to the
development of your product?
o What do you know about third-parties for factoring and
manufacturing?
o What’s about crowdfunding and avoiding to be copied?

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Discussion
o What do you know about bureaucracy and CE Marking?

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Discussion
o What do you know about bureaucracy and CE Marking?
o What do you know about existing hardware startups, and
their success or failure?

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Discussion
Some notes about CE Marking
o Why is CE Marking important? Because it offers a sense of safety when your product is
acquired.
o Competitors with CE marked products could be a disadvantage for your company if
you are not CE marked.
o You can more easily overcome your competitors with not CE marked products if your
products are CE marked.
o The drawback: CE marking consumes time and money.

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Discussion
Some notes about CE Marking
Stages that should be carried out for obtaining the CE Marking:
ü Identify applicable directives.
ü Check requirements according to European Regulation and standards.
ü Identify if you need Notified organization.
ü Test product and verify compliance.
ü Establish technical documentation.
ü Put CE marking issue by an EU Declaration of Conformity.

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Discussion
Example of successful hardware company
o PrimeSense was a fabless semiconductor company and provided
products in the area of sensory inputs for consumer and
commercial markets.
o Best known for licensing the hardware design and chip used in
Microsoft's Kinect motion-sensing system for the Xbox 360 in 2010.
o Selected by MIT Technology Review magazine as one of world's
50 most innovative companies for 2011.
o On November 24, 2013, Apple Inc. confirmed the purchase of
PrimeSense for $360 million.

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Discussion
Example of successful hardware company
o Oculus VR is an American technology company specialized in
virtual reality hardware and software products.
o April 2012, Rift, a virtual reality headset designed for video
gaming, is announced and launched a Kickstarter campaign in
August to make virtual reality headsets available to developers.
o March 2014, Facebook CEO Mark Zuckerberg agreed to acquire
Oculus VR for US$2.3 billion in cash and stock.
o Partnered with Samsung to develop the Samsung Gear VR in
November 2015.

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Discussion
Example of successful hardware company
o STAYmyway is a smartphone activated keyless access control
system for residents, guests, visitors and rental hosts. It is possible to
manage access rights for your doors remotely in the cloud.
o Its novelty for innovation is that guests are able to access their
rooms using only their smartphones.
o It is not necessary to change the hotel locks, it is just needed to
update them. In 5 minutes, a Bluetooth device is installed inside
the lock.
o Spanish startup from Cloud Incubator Hub.

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Discussion
Example of failed hardware company
o Pebble is a discontinued smartwatch developed by Pebble
Technology Corporation.
o It was the most funded project in Kickstarter history.
o On December 7, 2016, Pebble Technology filed for insolvency with
Fitbit acquiring much of the company's assets and employees.
o An unofficial developer group called Rebble was created to
extend support for the Pebble watches' online services that were
discontinued on June 30, 2018.

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Discussion

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Discussion
Example of evolution of a hardware device.

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Discussion
Example of evolution of a young hardware startup.

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List of resources
o http://tech.eu/features/385/lean-hardware-startups-europe/ (The 50 most exciting lean
hardware startups in Europe)
o https://hax.co/lean-hardware/financing-lean-hardware/
o https://www.researchgate.net/profile/Laanti_Maarit/publication/308869388_Piloting_Lean-
Agile_Hardware_Development/links/5a79d8e3aca2722e4df4e521/Piloting-Lean-Agile-
Hardware-Development.pdf?origin=publication_detail (Paper: Piloting Lean-Agile
Hardware Development)
o https://dspace.mit.edu/bitstream/handle/1721.1/1661/95_01.pdf?sequence=1 REPORT --
LEAN 95-01 Toward Lean Hardware/Software System Development: Evaluation of Selected
Complex Electronic System Development Methodologies. 1995.

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List of resources
o https://es.slideshare.net/haxco/building-leanhardwarestartups
o http://www.berkeleysg.com/3-best-practices-for-lean-hardware-development/
o https://www.agilealliance.org/resources/sessions/experiences-from-lean-agile-hardware-
development/
o https://www.quora.com/What-is-the-best-way-to-apply-Lean-Startup-principles-to-
hardware-development

65.
Workshop 7- Lean Hardware
This project has received funding from the European Union’s Horizon2020 research and innovation programme under grantagreement No 780460
Trainers
Location
Date
Helping today’s researchers
create tomorrow’s enterprises