How offset-cost design is reshaping electronics manufacturing

It's a story as old as innovation itself: great idea meets harsh reality of development costs. But what if we could change that story? That's where offset-cost design services come in, and I believe they're set to revolutionise electronics manufacturing.

If you take a moment to imagine you’ve got a corker of an idea for a new gadget. It could be a device that can measure heartbeats from 1,000 feet away – I've seen a proposal for something like this. The inventor is beyond excited and their passion to get started is all-consuming.

But then reality hits. You need a prototype. That costs money. You need circuit designs, PCB layouts, enclosures. More money. By the time you're ready to think about manufacturing, you've either remortgaged your house or given away so much equity that you barely own your own idea anymore.

I've seen this scenario play out time and again. It's not just frustrating; it's a genuine barrier to innovation. And in an industry that thrives on new ideas, that's a problem we can't afford to ignore.

How offset-cost design is rewriting the rules of innovation

So, what's the alternative? That's where offset-cost design services come in. It's a model we've been developing at Programify, and I'm genuinely excited about its potential.

Here's how it works in practice:

1. An inventor or company comes to us with an idea that has clear potential
2. We will undoubtedly add our own ideas and experience to get the device ready for production
3. Instead of charging upfront for design and prototyping, we take on those transformation costs ourselves
4. In return, we receive the manufacturing rights for a set period – usually three to five years. It depends on how much we have invested
5. During that time, we recoup our investment through manufacturing and possibly sales
6. After an agreed period, full rights to our ideas can be assigned to the original inventor or company

It's a simple concept, but the implications are profound.

Now, you might be wondering why a company like ours would take on that kind of risk. It's a fair question. The answer lies in the instinct we have developed honed by our years of experience in electronics design and manufacturing.

When you've been in this industry as long as we have, you develop a sense for what will work and what won't. It's like how an experienced pilot can read the weather. We're not just taking shots in the dark; we're making calculated decisions based on decades of collective experience.

Moreover, by taking on the entire process from design to manufacturing, we cut out a lot of the inefficiencies that plague traditional development cycles. There is no more miscommunication between design teams and manufacturing units – or at least it is much reduced! It is much less likely that you will reach the production stage and find that a crucial part is impractical or perhaps supremely costly to manufacture.

Real-world impact

This isn't just theoretical. We're seeing real-world results. Take the medical device we're currently working on for measuring limb swelling. It's a project that might never have seen the light of day under the traditional model. The inventor had the necessary medical knowledge to know it could transform medical care for those with serious heart conditions but lacked the resources or technological knowledge to bring his idea to life through design and manufacturing solutions.

Under our offset-cost model, we were able to take their concept and run with it. We handled the electronics and firmware design and we're now moving into the manufacturing phase. The original inventor gets to see their idea become reality, and we get to bring an innovative new product to market. It's a win-win.

Now, I'm not suggesting this model is without its challenges. Intellectual property rights, for instance, need careful management. You keep your IP, but we know it is incomplete without developing our own IP. But in my experience, these concerns are outweighed by the benefits. The alternative, for many, is seeing their idea gather dust. And let's be clear: we're not in the business of stealing ideas, we have too many of our own. Our success depends on building long-term relationships and a reputation for fairness.

Looking ahead, I see offset-cost design becoming increasingly prevalent. As AI and machine learning continue to advance, we are likely to see a further streamlining of the design and manufacturing process, making this model even more efficient.

What excites me most about offset-cost design is its potential to unleash a new wave of innovation in electronics. It's about democratising the development process, giving more ideas a shot at success.

In an industry that thrives on innovation, that's not just good business – it's crucial for progress. And personally, I can't wait to see what new ideas this model will help bring to life in the years to come.

By Clive Hudson, CEO of Programify