This would be my workflow:
1/ List the use cases, only the must haves, anything else is a waste of time especially for the first version.
2/ Define the specs required to support the use cases. Think of all operational items such as how to power the device, durability, size of the case/box, portability, test leads, data exchange with the external world, long term support/warranty, software/firmware licenses, etc... Do not overspec it will only bring cost and difficulty.
3/ Check for existing open source projects that can meet the requirements, often something already exists or can be used as inspiration. Ideally you can reuse or contribute to that other project.
4/ Start the design. You might want to define multiple versions like basic and advanced.
Use case example: Monitor the voltage of a lead-acid vehicle battery (12V or 24V). Perform an action (send alert, close contact/relais) in case of rapid voltage drop or low state of charge. Device is powered from the lead-acid battery under test.