Having been in the chip design services business for almost 20 years now, I have noticed a seasonal aspect to the business and tried to make sense of it as of course it is my job to try to manage the level of work to the greatest extent possible. But there is no doubt that there are ups and downs in the level of business through the years that follow a roughly seasonal pattern.
The Spring Season starts around February and extends through June. This has historically been the busiest timeframe for RFQ's and project starts. I believe the underlying cause of this is that customers come back from the Christmas/New Year's holidays, take a few weeks to get started, and then embark on their grandiose plans for the year. You would think this would start earlier in January; I guess it takes a while to get over the hangover from the previous year end. It is quite easy to overload at this time and you have to be quite careful not to over-promise and under-deliver.
The Summer Season starts in June and ends in August. In this time you find all of your customers are either on vacation, getting ready to go on vacation, or just getting back from vacation. As a service provider you better have some longer term projects sewn up in the Spring or this can be a very lonely time. Just try to schedule a design review with a customer during the last week of July.
The Fall Season starts in August and ends in November. This season provides a 'second wind' of activity. I believe this is due to customers coming back from their summer vacation and suddenly realizing they have a ton of work to get done by the end of the year that they have totally neglected through the summer. The key for the service provider to get back from vacation before the customers and be ready to rock.
Finally comes the Winter Season, December and January. Like the summer, it will be quite difficult to find your customers available as they are either working their butts off to meet their own end of the year deadlines, or are out on holiday shutdown. Hopefully you are also working your butt off to meet end of the year deadlines but God help you if you have completed your projects in the Fall and need to find new projects at this time of the year. Better just relax and wait until the Spring.
The cure for the ups and downs of the seasons are 1) longer term projects that span significant timeframes, 2) multiple successive projects from priority customers and 3) internal IP development efforts scheduled for the slow times. In the end it just takes some perspective on the nature of the business to get through the peaks and troughs successfully.
I wonder whether service providers in other fields see a similar pattern. Let me know what you think.
MIE Labs Blog
Tuesday, August 5, 2014
Wednesday, August 14, 2013
Cost-Effective Development of Proprietary Analog IP
The independent development of innovative proprietary analog
IP has always been a challenge for small design firms such as MIE Labs. Such firms are typically self-funded through
the design service revenues that they generate.
The process of taking a circuit concept through the entire design cycle
through prototype validation is very costly and time consuming. Without a paying customer behind this effort,
this scope of effort is rarely justifiable or even feasible. On the other hand, having a growing library
of innovative analog IP is critical for the efficient development of analog IC
products as well as providing a level of comfort to prospective customers that
technical risk has been addressed to the greatest extent possible prior to
undertaking a challenging product design effort. The development of this sort of IP library
can also provide a potential second source of revenue to the firm in the form of royalties
and/or license fees to better support the operations of the design team,
further enabling future IP development.
One compromise approach which addresses this issue of
proprietary analog IP development is to have internal staff undertake to quickly
and effectively develop new IP concepts only to the point that their
performance characteristics can be readily demonstrated. This can be accomplished in a cost-effective manner
through the use of behavioral modeling and simulation. Utilizing this approach, innovative circuit
and system concepts can be relatively quickly evaluated and demonstrated. Potential problem areas and critical
performance limitations can be identified early in the development process. Behavioral simulation models which include
some non-idealities reflective of the real (transistor-level) analog circuits
are utilized and therefore provide a reasonable level of confidence that performance
demonstrated in a behavioral simulation can in fact be realized in a full
transistor-level design moving forward.
In some cases actual transistor-level components and existing IP modules
can be included in a mixed behavioral/transistor simulation (for example,
actual output power FET models and parasitics used in a power switching device)
in order to better represent the expected behavior of the real circuitry.
Through the judicious use of this approach, many analog circuit
and product ideas can be explored quickly to a reasonable level, giving a
better sense of what may be accomplished in a full transistor-level design
implementation. This technique goes a
long way in demonstrating concepts and capabilities to prospective customers
and partners. Rather than simply present a draft data sheet
and/or a block diagram, actual simulation results can be demonstrated under
various operating conditions and specific tradeoffs can be explored ahead of
time with significantly less upfront design effort. MIE Labs is using this approach right now to
flesh out some interesting analog product and IP concepts which we believe will
greatly benefit our customers and partners moving forward. If you would like to find out more, please
feel free to contact me at echalfin@mielabs.com.
Wednesday, February 27, 2013
Leveraging a New Strategic Alliance to Better Serve Customers
It is rare that a technology service provider has all of the
necessary skills and manpower in house to address every potential customer
need. This is particularly the case in small hardware service firms, and MIE Labs is no exception. On the other hand there are many advantages
to customers working directly with small firms, including flexibility, cost
and expertise (not to mention the requirement in some contracts for a minimum
percentage of small business participation).
So how can a customer navigate the identification and engagement of a
number of small firms to ensure that the necessary capabilities and
manpower are brought to bear on their project while at the same time minimizing
the need for added management overhead?
To better address this need, a group of Maryland-based small
technology service providers - including MIE Labs, Sensing Machines, Root3Labs
and NeWo Technologies - has joined together in a new strategic alliance in order to
provide our respective customers with the variety of skills and manpower needed
to address their most challenging hardware development projects, while at the
same time streamlining the entire process for the customer from a program management and
procurement point of view. To our
customers, we provide the benefits of a single-point vendor contact while at
the same time having strong coordination and cooperation between a variety of expert
providers looking more like a much larger firm.
How does this all work?
When one of the alliance members identifies a customer project that requires expertise or manpower beyond their own internal capabilities, they will act as the project lead. They will consult behind the scenes with
other alliance members as needed to provide whatever additional expertise is required to fully meet the requirements of the project. The
project lead will deal directly with their customer as their single-point
contact for the project, but the customer will benefit from the capabilities
brought to bear by the entire alliance team.
As the project moves forward, any subcontracting between the alliance
members will be handled entirely behind the scenes and the project lead will handle all internal project management tasks.
The advantages to the customer are manifest. While working directly with a small firm with whom
they are already comfortable, they will have the benefit of first-class
expertise in a wide range of areas that they would be unlikely to find in any one small firm. For the customer there is no
longer a need to engage and program manage multiple individual small firms to provide
expertise on a given project, while still maintaining the benefits of working
with small company suppliers. The goal
of the alliance is to bring the capabilities of a larger company to bear with the nimbleness
and flexibility inherent in the operation of our small company members.
This new alliance, in combination with other strategic
relationships such as MIE Labs’ recent cooperative agreement with JVD, Inc. in
Silicon Valley to provide backend chip production, enables us and our alliance partners to better serve our
customers now and as we grow in the future.
Wednesday, January 2, 2013
When to Engage an Analog IC Design Consultant
There are many situations in which a product or system
development firm might want to seek out and engage an analog integrated circuit
(IC) design/development expert for consultation. IC design is a small niche of the circuit
design field itself, and analog IC design is in turn a tiny niche within that
niche. Strong, highly experienced analog
IC design experts are relatively rare, in particular ones that are not tied in
exclusively to one company as an employee.
But independent experts do exist and are quite willing and able to
perform consulting services on an ad-hoc basis for those in need.
It may seem at first glance to be more cost effective to
have someone on staff with this type of expertise. In reality, hiring (and keeping) someone on
staff with expertise in analog IC design and development is rarely necessary or
desirable in a typical product or system development company. In fact, unless there is a significant
baseline of analog IC design work being done in a given organization it does
not make any sense whatsoever to try to develop this type of expertise in
house. The only way to justify doing so
would be to envision a steady and growing stream (critical mass) of analog IC
design work – enough to grow a group within the organization - and that is not
typical in most companies that are not themselves focusing on the development
and sale of analog IC devices (chips).
That being said, in most electronic product development
companies there are occasionally projects that come up where the need for an
expert in analog IC design is critical, and this is where obtaining expert
consulting services is the most effective solution. Some examples of these situations are:
- A custom analog IC design is needed for a new product for cost or performance reasons
- An obsolete IC in an existing product needs to be sourced or replicated
- For cost or performance reasons the potential options for integrating some or all of the circuitry in a product must be evaluated
- Low yields, poor performance or other technical concerns with existing IC devices used in a product need to be investigated and rectified
- Assistance/advice is needed in identifying and evaluating potential foundry, assembly and test vendors for an IC
- The possibility of generating a new spin of an existing IC for derivative products needs to be evaluated
The specific tasks and expertise that would justify the use
of an expert analog IC design consultant are similar in all of these
scenarios. Some of the critical areas
of expertise needed include:
- Detailed generation and/or review of technical specifications for an analog IC
- Evaluation of semiconductor processes - not only in technical but in economic terms
- Working successfully with missing or incomplete device modeling information
- Ability to evaluate existing ICs at the transistor level including understanding process and tracing circuitry
- Design and schematic capture of existing and new devices and simulation of critical performance specifications
- Evaluation and recommendation of fabrication, prototyping, assembly and production test options
- Prototype evaluation/characterization and validation
- Development of reference designs and application notes
In any situation, the analog IC design consultant must work
closely with the rest of the product development team in order to come up with
the optimal solution. Excellent
communication skills are paramount.
Independent design consultants are accustomed to this way of working and
are generally very flexible in adapting to a customer’s standard processes and
procedures while executing tasks that are not necessarily spelled out to the
last detail. In the best case, the
analog IC design consultant will manage the IC-related tasks while interfacing
closely with the customer’s Program Manager to insure a close and effective
relationship.
Analog IC design is a highly specialized niche within the
field of engineering, making it a difficult specialty to develop and maintain
in the typical product development organization. At the same time, in many development
projects the need for this expertise is critical. The use of a qualified analog IC design
consultant in these situations can make the difference between success and
failure.
Thursday, December 6, 2012
How Do You Go About Engaging a Design Services Firm?
Once you have decided to explore the possibility of
developing a custom integrated circuit for your new product, how do you move
forward from there? If you do not have
in house IC design/development experience or expertise the most straightforward
choice is to seek out a consultant or design services firm specializing in
custom integrated circuit design and development. In particular when the product is heavy on
analog content (i.e. big ‘A’ little ‘d’) this can be the best approach given
the specialized knowledge and expertise required in the still-arcane field of
analog IC design.
A quick search on Google for ‘custom analog IC design
services’ will yield a number of firms both in the search results as well as
the associated Adwords advertisements on the page. You will need to investigate these once you
have determined and ranked the criteria you intend to base your decision
on. These criteria could include:
- Location/geography
- Demonstrated experience in the given application space
- Capabilities of the firm
- Flexibility of engagement model
- Resources
Once you have identified a number of potential candidate
firms and reviewed the material on their websites, the next step is to contact
them for a preliminary discussion in which you can get a good sense of their
capabilities and focus. If you have a
preliminary spec or datasheet for your product that can be disclosed without an
NDA it would be good to give the firm a chance to review it at this time to
provide you with some initial feedback.
This first interaction (be it by phone or email) will also give you a
gut check on things such as responsiveness, communication style and general
interest level in your project. When
you have identified one or more firms that you feel comfortable with and have
indicated that your project is something they feel comfortable with and have a
strong interest in working on, it is time to move on to the next steps.
At this point it is standard operating procedure to initiate
a mutual NDA with the firm. This will
provide a comfort level on both sides to disclose proprietary details necessary
to move the discussion forward. There
are many standard NDA forms available online, or your attorney can draft one. In general it makes the most sense for you to
provide the NDA since at this point you are the primary discloser. In any event is typical that the larger firm
in the transaction will generally provide the boilerplate NDA form to the
other. Once executed, a deeper dive into
the technical and business related details can ensue. Proprietary documentation can now be
exchanged and discussed freely.
Once the services firm has had a chance for their technical
staff to review your documentation and requirements, a telecon or face to face
meeting between the technical staff of each party is the next step in the
process. In this meeting questions and
clarifications can be exchanged in order to insure the best possible
understanding of the task at hand between the parties. In parallel the program and business managers
on both sides can discuss the framework of the working relationship including
details such as business model, costs, schedule, program management, formal
review process, etc. The end goal is to give the design services firm all the
information required in order to provide you with a detailed technical,
schedule and cost proposal, and at the same time help crystallize your
requirements and priorities.
Now the design services firm will go to work. Developing a detailed technical proposal is
typically quite time consuming and represents a significant investment by the
firm. There may be ongoing discussions
back and forth in order to iron out any remaining questions and details. It is critical given the work involved that
the proposal properly address all of your requirements and concerns adequately
and to that end good communication in this phase is the key. In general a good proposal will include most
or all of the following sections:
- Introduction
- Project Overview
- Development Approach
- Technical Discussion/Tradeoffs
- Detailed Statement of Work
- Schedule Estimate
- Costs
- IP Considerations
- Other Considerations
A strong and detailed proposal will go a long way to help
you make the final decision on whether or not it makes sense to move forward
with your project. Additionally, if you entertain
proposals from more than one design services firm you can take this opportunity
to compare and contrast the proposals and proposed technical approach as well
as costs and schedule. If even after everyone’s
best efforts the proposal does not meet the project requirements often a second
round clarification is called for as it may be that there has been a
miscommunication or misunderstanding of relative project priorities in the
first round.
In the end the proposal and especially the statement of work
will form the guideline and reference for the project once the go-ahead is
given, enabling you and the design services firm to be on the same page.
In summary, properly engaging with a design services firm is
critical to setting up your project to be successfully executed. These initial phases represent a significant
amount of work and communication by both parties but a strong effort in this
phase will be a good indicator of how the project itself will proceed.
Subscribe to:
Posts (Atom)