Peter Semmelhack on open source hardware innovation

Peter Semmelhack, founder of BugLabs, spoke about his company's goal to make hardware as malleable as software, freeing people to create the devices that meet their needs and improve quality of life.

While the Open Source movement has enabled rapid progress in the field of software in recent years, hardware innovation lags behind. The way that hardware products come to market is time consuming and expensive for all.  A number of factors mean that only big multinational players tend to be able to survive in this space:

  • Research and development and distribution of mass market products is an extremely expensive process
  • The upfront investment required to develop a new product is very high: typically it takes one year and a million dollars to produce just one prototype
  • To get a high enough price point you have to produce at a very large scale
  • Average returns tend to diminish significantly after about two years

However, there are big opportunities outside of mass market products, Peter argues. In the areas of healthcare and energy management, for example, there are niche markets for products with very specific uses. If an efficient platform could be used to develop these niche products, there are potentially as many gains in the ‘long tail' of the electronics market as in the mass market products such as DVD players and mobile phones.

Bug Labs provides an open source, modular system for hardware that enables businesses and individuals to innovate in a way that is affordable. Bugmodules, which include GPS, 3G, speakers and motion sensors, are designed to be clicked together to build new products with unique combinations of functionality. This approach frees individuals to start creating the specific gadgets they need in a low cost, efficient way.  Users can then add to their device any number of online applications created and shared by the BUG Community.

The BUG system can also be used to create products with specific social uses. For example, BUG4good is a handheld device designed to enable human rights workers to capture material (video, photograph etc) in such a way that it can be used as official evidence in the courts in Geneva. With total demand of just a few hundred units, this is not a market a large technology company would be likely to serve.