iNSIGHT

Design Recalls: when it goes wrong & Nest’s 440,000 recall

With 440K Nest smoke detectors recalled at $160ea assuming a 1/10 manuf. cost = $7M loss for a 1st run launch. What if this happens to your firms flagship design? Here’s what.

As reported by every magazine from Tech Crunch Silicon Valley, the Guardian in the UK to Corriere Della Sera in Milan Google’s flagship entry into the home “maintenance” market with the Next Thermostat was a success but not with the recall of their smoke detector with a massive 440,000 product recall. In Inc Magazine’s How to survive a recall and CIO Magazine’s 5 Best Practices we see the necessary steps for full produtc recall and strangely very similar to the Heartbleed virus:
1. Plan ahead – for interactions between manufacturing partners, logistics, and facing call centers, websites, etc. so that customers are not let out in the dark as to next steps as well as the legal teams and ramifications from possible legal actions.
2. Respond quickly – assembling the necessary team as fast as possible and directly addressing customer, manufacturer and media allows for engineering to begin the process of fixing, retrofitting and of removal of the product from the market
3. Acknowledge it – by working directly with consumers, the media and internal champions to solve issues before they spiral beyond repair.
4. Turn the corner – by getting product back into the hands of key customers, media,and merchants who can keep the flow of the newly adjusted product in the hands of those who product champions.

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