IoT (Internet of Things) is one of the fastest-growing technology creating impact across multiple sectors such as manufacturing, retail, automotive, infrastructure, logistics, public services, and consumers among others. It is projected to generate billions of dollars in value by research houses (Gartner, McKinsey, IDC), industry bodies, and experts, due to its wide applicability across B2B and B2C. For a layman, IoT can be defined as a data enabler that helps to capture information using sensors to generate meaningful insights and value for the user.
IoT devices market size is predicted to be in the range of $300 — $500 Billion USD by 2025 making it a very attractive value proposition. Connected devices comprise sensors, actuators, connectivity, processors, peripherals, and passive materials. For example, temperature and humidity sensors in a truck carrying perishable goods track the readings and upload them to a cloud/remote server in real time using cellular connectivity (4G). Data is then processed to generate alerts or take corrective actions as needed.
In certain scenarios processing can be done locally in the device processing unit to save time, and bandwidth or generate critical alerts. Such capabilities lead to edge intelligence in the solution also called edge computing as seen in the image. Typically sensors are inside the end devices such as windmills, factory equipment, connected cars, or retail shopping trollies and these sensors communicate with a gateway or smart hub that does more complex processing and enables long-range internet connectivity with the cloud.
The IoT device manufacturing ecosystem comprises participants including but not limited to OEM, ODM, Embedded Designers, Firmware Developers, Hardware Architects, PCB Designers, EMS service providers, Mechanical Designers, Testing & Validation Labs, Certification bodies & so on.
IoT device design needs to be highly reliable, modular, secured & economical with the capability and capacity to both prototype and mass manufacture. Device productization with a scalable first mindset is the key and here are 7 steps to consider:
Detailed requirement analysis of the use case is key to designing an optimal architecture and firmware logic with consideration for price, form factor, security, interfaces, data transfer support, and edge analytics among others. Ideation also helps to analyze if an off-the-shelf or a readymade device may fit the requirement and if matches a minimum of 80% then it is advised to customize the available design.
The next step is to design electronics and mechanical parts. Electronics starts with a block diagram of the PCB with all interfaces, modules, components, and interactions with the application layer for example 4G module + Wi-Fi chip + Battery + Antenna + Memory for a simple 4G based tracker. The hardware designer then creates a detailed architecture diagram with modularity as a key driver to keep the design not tightly coupled with the component make but as much as possible agnostic to the chip or module provider. It is best to keep the design flexible enough to make changes and design for an 80% match as 20% customization is always expected in IoT. For example, a customer needs WiFi + BLE so instead of choosing a Wi-Fi-only chip if the price permits then select ESP32 that supports both but maybe keep architecture flexible to support ESP12 (Wi-Fi only)and ESP32 both. Mechanical designer works with electronic designers closely to ensure the enclosures and other mechanical design considerations meets product requirements such as IP67 rating.
The selection of programming logic to support the use case goes hand in hand with the hardware design hence the consideration should be for a reliable low-power embedded architecture that can run on the hardware and fits memory and power requirement. Data security and encryption (ex: AES 256) is a crucial design driver to protect data stored on the device or transported from the device to the network. Choosing hardware with a good developer community and resources will help to develop firmware in time.
Building MVP prototype with the electronics and firmware to test functionality and performance requirements with possibly off-the-shelf or 3D printed enclosures without investing in tooling/molding cost upfront will reduce sunk cost. A prototype can be created at a lower cost and given to customers for testing and validation. However, DFM (Design For Manufacturing) processes should be adopted to ensure the final design is manufacturing-friendly and can help to keep the cost per unit low.
Post sample approval you can optimize the BOM (bill of material) to ensure we do not compromise on the quality of electronics or mechanical components but bring the price down to stay competitive. Volume, component type, and power of negotiation all help to add value i.e. value engineering or analysis can lead to customer satisfaction and repeat business.
Post-finalization of the BOM and samples, we move to the final UAT and validation to ensure the product in its close-to-final form supports all functional and non-functional parameters and KPIs. If any certifications, which could be costly and time-consuming such as FCC, CE, BIS, ATEX, IATA, FAA, etc. should be taken up at this step.
Finally, when it comes to mass manufacturing it is key to optimize lead time and process cost in order to reduce production price per unit assuming a reasonable volume. The driver of an uninterrupted product is the availability of raw materials and hence strong supply chain management of all input materials (electronic, mechanical, consumables, etc.) with proper inventory management must be in place. Processes & machine settings on the SMT and assembly lines need to be well-defined and must be in line with traceability solutions to capture the raw material information. Additionally testing details, packaging, documentation for quality assurance and shipping information should be handy and ready.
Building a modular device is easier said than done hence approach adopted should be with a clear understanding of the market needs, product use cases, and variability in the customer requirements. At times it is fine to have 80% close to the final product ready with one or two variants available for demo and flexibility to customize the design.
Napino Digital Solutions, one of the leading electronic component manufacturer in India with a strong design team use world-class equipment and standards with state-of-the-art facilities. It leverages MES, SMT, SAP, and Siemens to adopt Industry 4.0 standards and applications to ensure low lead time with high-quality output at a competitive price. You can connect with us at info@napinotech.com or
Vinay Solanki has 16+ years of experience in business development, sales, strategy, partner management, marketing, and engineering within domains such as manufacturing, telecommunication, computing, and investment banking. He is currently GM & Head of Digital Solutions at Napino and has worked at Lenovo, Bharti Airtel, Goldman Sachs, and TCS. Vinay holds an MBA from IIM Ahmedabad and is the founder of the world’s 3rd largest IoT community IoT NCR with 8000+ members. He is recognized as a global top 20 thought leader in IoT and analytics by Thinkers 360. He is a TEDx speaker and member of NASSCOM, and DoT TEC as well author on Your-Story, EFY, IoT Central, and international media.
LinkedIn: https://www.linkedin.com/in/vinaysolanki/
Twitter: @vsolank1
