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Selecting appropriate sensors and actuators is a pivotal aspect of design and engineering, particularly in projects involving interactive systems. This article introduces the design thinking-based iterative sensor and actuator selection flow, a structured decision-making approach aimed at streamlining this essential, yet often complex task. Created to accommodate individuals with diverse levels of technical expertise, our approach is uniquely suited for interdisciplinary teams of designers and engineers. Through the application of the flow to four real-world case studies, we highlight its broad applicability and demonstrate its efficacy in expediting project timelines and enhancing resource utilization. Our work lays a foundation for a more streamlined and user-centered process in selecting sensors and actuators, significantly benefiting the practice of interactive system design. This contribution serves as a seminal foundation for future research, offering significant contributions to both academic inquiry and practical applications across various industries. While the focus of the flow is on streamlining the selection process rather than on in-depth technical considerations, which are beyond the scope of this study, it provides a comprehensive guide for efficient and informed decision-making in the realm of interactive system design.