Advise on product development

[Methanolic]

G'day,

I have a product idea and it is well received by target clients. I have been asked by these clients who are interested in funding it to come back with approximate development and piece costing for a initial proposal.

Unfortunately I do not possess experience or skills. I am hoping to get answers and guidance about how to go about it.

The product has the following components

A integrated cellular Chip
A integrated GPS chip for coordinates
A Passive IR presence sensor
Temperature sensor
Air Quality Sensor
Air pressure sensor
Impact detection
Solar cell
Extended life battery pack
LED lights
Audio alarm and Chime
Casing

We expect 10,000 units per production run and possibly as high as 1 million units over lifecycle.

We are not constrained by size but would like to keep the unit around 8 inches long by 6 inches wide and upto 4 inches thick.

+ logic programming isn't exactly complicated but it is a mission critical app so it needs to be robust.

I realize that this is very vague but I am hoping to get a ball park figure and guidance that will help me.

Thank you in advance

 

[Comcokid]

Cellular modules with GPS are available from companies like Sierra Wireless, Telit, Multi-tech, and many others. You then need a data aggregator service (you really don't want to negotiate with all of the different cellular companies yourself). I assume that you've already thought about your own central data collector service for whatever data you are trying to collect (i.e. servers, software, high-bandwidth connection, etc). Then come the approvals - PTCRB for GSM cellular in North America, individual large phone carriers in Europe, etc. Remember, those towers are owned by cellular companies, and they want to only have tested modules and software applications connecting with their towers and not jamming their system, so PTCRB is the industry verification gatekeeper.

You are getting into the kind of application large companies setup. The Automatic Meter Reading (AMR) companies build their own networks, and use some cellular. Large home alarm burglar/fire companies do the same. Other M2M cellular companies are out there that monitor semi trucks, railroad cars, shipping containers, soda machines, fuel tanks, oil wells, irrigation systems, traffic lights, construction equipment, dogs, horses, felons, etc. It's a big industry.

I would check with some of the companies already out there. Some also engineer products for others (to earn extra money from their engineering design staff, and to provide the data collection side of the system). Check with companies like Amsted, Itron, Sensus, Centeron, etc to see what you can find out.

 

[Methanolic]

Thank you for the quick response. I should have mentioned that the application is to call emergency services only (911)

I would like to communicate location details to 911 operator (audio) I understand that any cellular phone can call 911 (even if it is not subscribed to a network)

I would however like to maximize compatibility and coverage. I have therefore assumed no ongoing costs.

 

[LiteYear]

Unfortunately I don't know if you'll get anything useful without engaging a consultancy to do a quotation.

The design of the electronics and mechanical enclosure might be around 4 weeks work (160x$200 = $32k) but that could work out to be a relatively minor cost. Compliance testing can easily run to more than that depending on your target market, and I suspect you'll need some specification development to begin with, otherwise the design phase will be much longer. Mission critical software cannot be done on a whim - it starts with excellent requirement specification and ends with thorough verification and validation. Then you have prototyping and a design revision or two. Maybe manuals, packaging, marketing materials?

Piece costing is straight-forward based on quantities after the initial specification phase, though naturally the earlier you make the estimate the greater the error bounds. Development costs might appear significant upfront, but in these sorts of projects it's better to be realistic about the scope than to constantly be begging for more money for "one last thing".

 

[itsmoked]

Around $70k.

Keith Cress
kcress -

http://www.flaminsystems.com

 

[MacGyverS2000]

$100k-$500k. Since the info is vague, so is my quote.

Dan - Owner

http://www.Hi-TecDesigns.com

 

[VEBill]

You didn't mention the uC that you'll obviously need to manage the functions. You did mention "logic programming", possibly a significant cost driver (shouldn't be, but often simply *is*).

Your assumption that you can set up alarm networks that will automatically phone into 911 for free (no network subscription) smells like a bad assumption. Perhaps it varies by jurisdiction. Most 911 systems don't want to be in the Alarm System Monitoring business, except for free instead of $20/month.

As mentioned, a better business plan has you teamed up with a service provider that will share monthly revenue with you.

Also, the 911 rule might apply to *phones*. But you'd better check that it also generously applies to data modems. I suppose you could try to embed an actual phone... ...and interface to it via Bluetooth?

Also, calling 911 gets you a human. They'll not be amused if you start emitting modem tones or a robot voice read out a long boring list of latitude and longitude values.

If your solar cell is limited to the size of the box, not more than 48 square inches, then the circuit / system designer will have to pay strict attention to power consumption in every detail. It would be very easy to design a box of tricks that would require too much power.

A better concept would be that the box could also call for service when the solar cell is covered by snow or a bird's nest, and the battery is getting low.

 

[Desrod2]

I worked with a small start up company that developed a product a lot less complex than yours. When we started, we had a working prototype and firm commitment from customers who had financed the research. From prototyping to commercial operation (industrial design and manufacturing, commercial distribution network, certification etc.) and positive cash flow,we spent ~$5 millions and worked hard for close to 7 years.
If you have serious clients ready to invest, let them finance a feasibility study and build a business plan. What you described look like some systems in cars. If there is a market, you are likely to see someone who has something similar cut you short, add a risk assessment section to your business plan.