Hardware
Hardware is the physical components that make up the project. Mostly, the base consists of a printed circuit board, which connects all components through layers of copper.
There is a large variety of components, from passive (resistors, capacitors, inductors,..) to active (semiconductors,..) components. At it's core, this is the most important part of the electronic design process.
Today, an entire branch of electronics is made up of digital components. In most cases, these can be programmed to obtain a variety of possiblities with the same hardware, which clearly poses an advantage, as the design can be easily upgraded. Digital programmable electronics are found in everyday devices, the car being a prime example. Even the refrigerator contains microcontrollers, which are like small computers.
On the other end of the spectrum, analog electronics are equally important, as the everyday world is not a digital one, there is not simply black and white, but millions of colours. This is where analog electronics come in. Amplifying signals, for example in a radio, is a task well suited for analog electronics, to provide a gradual increase in the sound level.