Hardtech has limitless potential to solve significant problems. By embracing collaboration and breaking down sector silos, we can push the envelope of innovation. Christopher “Toph†Day, CEO of Elevate Ventures, makes the case for collaboration.Â
Software sparked a technological revolution. Hardtech will spawn a new wave of innovation, allowing companies to tackle more significant challenges than possible using software alone. OpenAI and Chat GPT just changed everything yet again – overnight. To capitalize on these opportunities, we must break down sector silos to enhance collaboration and innovation.
Hardtech bridges the gap between hardware and software. While hardware refers to physical components like computer chips and circuit boards, hardtech encompasses a wide range of tech, including hardware, advanced software, robotics, compounds and artificial intelligence. The Apple Watch, GoPro cameras, Tesla cars, Oculus VR headsets and Peloton bikes are just a few hardtech products.Â
As someone passionate about the tech start-up and scale-up ecosystem, I believe we can unlock incredible possibilities with hardtech, but companies can’t work in isolation. For example, hardtech is pushing food processing and production to new heights.Â
Hardtech Is Harder Than Software
Launching a hardtech product presents significantly more difficulties and expenses than software, including:
- Material requirements: While software is ephemeral, hardtech requires physical materials, equipment and manufacturing facilities. Physical constraints such as size, weight, and power consumption limit the design options, affect product performance and increase the manufacturing and integration complexity. Hardtech creators must build multiple versions of form factors, a complex supply chain and develop an efficient distribution system. Scaling requires more materials and more manufacturing capacity, generating significantly more costs. Supply chain issues and workforce, equipment and facility availability can limit production. Technology reliant on cutting-edge materials like new battery types may face additional sourcing challenges.
- Long development cycles: Hardtech is technically complex, requiring extensive R&D, prototyping and large teams with a variety of specialized skills. While software developers can easily add new features during customer beta testing, hardtech must contain everything from the beginning. The long cycle means hardtech can take years to hit the market.Â
- Capital expenditures: Materials and the extended R&D process demand extensive capital expenditures, which take longer for investors to recoup. The upfront costs create additional risks for product failures.
- Regulatory risks: Governments and other entities impose more regulations on hardtech than software. Products must meet safety requirements before hitting the market, and standards often vary by region. Due to hardtech’s physical nature, environmental and trade regulations are also more impactful due to the need for material sourcing and electronic waste disposal. Violations result in fines, recalls or even discontinued or banned products, and hardtech fixes cost significantly more than software. Â
Despite these challenges, hardtech creates significant market value by introducing new capabilities, efficiencies and cost savings.Â
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Hardtech Success Stories
While the hurdles to hardtech profitability seem daunting, we’ve seen countless successes — many of which impact our daily lives.Â
Take your smartwatch. You wear it everywhere and rely on it for more than telling time. It tracks your physical activity, measures your heart rate, analyzes sleeping patterns and delivers messages, among many other capabilities. How about smart home devices? You can turn your lights on and off remotely, set thermostat schedules, play music in speakers throughout your house and even preheat a Wi-Fi-connected oven. How did we ever live without these features?
In the business realm, hardtech devices automate manufacturing processes for increased efficiency. IoT devices and sensors collect real-time data to help city planners and public utilities. Drones are used for military surveillance, delivery and land surveying, making many tasks safer, simpler and more productive.Â
The list of innovations and their benefits continues. So how can we push the envelope of innovation while reducing hardtech risks? By embracing collaboration.Â
The Case for Cross-sector Collaboration
Human nature encourages us to stay in our comfort zones. If I’m really into country music, I’ll choose country playlists over pop playlists. But imagine how many great songs I will never hear. This trivial example illustrates how much we miss by not venturing outside our silos.Â
The tendency to live in our own ecosystems extends to tech and startup companies, too. Breaking down these silos invites collaboration and increases opportunities for groundbreaking ideas to flourish and teams to enhance existing technology.Â
Software, agrotech, health tech, food tech, sports tech and hardtech are symbiotic — we could accomplish so much more by working together. Let’s explore a few benefits of cross-sector conversations.Â
Stress testing
When working within your company or field, you recognize the power and utility of your hardtech innovation. But that’s only part of the equation. Cross-sector collaborators challenge you to answer questions like:
- Does it actually solve a customer’s problem?Â
- Will they be able to use it effectively?Â
- Does it have all the necessary features?
These collaborators’ different perspectives can illuminate flaws or shortcomings in your product or strategy. No one wants to hear criticism (myself included), but would you rather hear negative feedback from a collaborator or from the market? Cross-sector discussions help make a market-ready device, saving time, money and reputation.Â
New uses
The best hardtech has many real-world applications. But sometimes, you get caught up in building it for its original purpose, to the exclusion of considering alternative uses. Partners and stakeholders from other sectors can illuminate cross-functional opportunities.Â
Consider the success of the Apple Watch. This hardtech innovation functions great as a watch, but the product really took off when designers embraced sports and health. The watch now tracks exercise and measures heart rates — functions important to several new audiences. Fitness enthusiasts rely on it for their workouts, and healthcare professionals are exploring new ways to use it for monitoring and improving patient health. This example demonstrates the power of getting outside your circle.Â
CollaborationÂ
Collaboration unlocks incredible hardtech potential. Maybe I have this cool capability, but I’m unsure how to leverage it. Meanwhile, you’ve been trying to create a new product with that feature and haven’t been able to perfect it. We can work together to create an innovative device that makes an impact. And who knows — our conversations may attract a new investor eager to support your effort or a partner who thinks you’re the perfect choice to build their idea.
Here’s another scenario, which involves sharing space, tools and materials. Early startups often have great ideas but need more capital for manufacturing processes. Two companies could invest together to generate the capacity they both need. We even have companies launching just to help entrepreneurs iterate faster and more cost effectively without having to build manufacturing prototypes on their own.
So, how does collaboration look in practice? Take the story of True Essence, a food tech company unlocking freshness and taste in shelf-stable raw foods. They worked with people across sectors — mechanical engineers, chemical engineers, marketers and agriculture experts — to innovate a new, more effective way to create authentic flavors and so much more.Â
Enabling Creative CollisionsÂ
I experienced cross-sector collaboration’s impact in a leadership course. The group included entrepreneurs, lawyers, accountants, marketers, artists and others. The diversity was intentional because a vibrant community requires all these roles. Even though I’m in a different field, I learned countless things from others applicable to my own life and business.Â
Fast forward a bit because now those people have become decision-makers in their sectors. When I need to get something done, I can call them and ask, “Hey, can you help me?†We share resources, connections and ideas. I’ve seen cross-sector relationship benefits in my own life and in the lives of founders and entrepreneurs I’ve worked with. Â
Inspired by the course experience, I strive to experience and create “creative collisions†— opportunities to get feedback and ideas from sources outside your ecosystem. I helped develop the Rally innovation conference to encourage people to step out of their usual circles. Most conferences cater to specific industries. This one invites everyone, regardless of industry.
Hardtech will change the world, but reaching its full potential requires input and cooperation from every sector. We should all smash our silos and seek feedback and assistance from disparate stakeholders to build better, more impactful, market-ready products.Â
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