Group 2 3D Printing

Entrepreneurship Assignment 4

BMC

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Group 2 3D Printing

Entrepreneurship Assignment 4

BMC

Introduction:
When analysing the BMC, it is important to look for finer details, specifically the opportunities and
potential solutions that are available when developing the canvas. In relation to Invana 3D printing,
there is a significant potential for opportunities especially within the value proposition and revenue
channels of the BMC. As indicated in further detail in Section 1 of the document, the company is able
to maintain a healthy profit by using economically cheap materials and cater to consumer needs
through revolutionary technology. However, if the company adjusts its current model, Invana 3D
would be able to generate an even stronger profit and consumer intake through new channels such as
focusing on exposure and expanding its customised orders for consumers.

Section 1.0: Original Business Model Canvas

The original BMC detailed specifics about Invana 3D (as seen in appendices 1) and its current
standing for its business model within the marketplace on the Gold Coast. Firstly, the key partners are
detailed as individual with very little to no staff members. It is assumed that the company could
introduce new staff members and perhaps a more interactive format with other businesses to generate
new potential clients and delve into even more profit. Alongside this, Invana specifically personalises
its services by engaging consumers on a 1 to 1 basis with its key activities. They promote impulse
purchasing through bundles and discounts with their currently promoted CS: GO knives and custom
orders. This also ties in with both the value proposition and the revenue stream. By using promotional
content and purchase bundles, Invana is able to generate a significant amount of profit from each
order of 3D product.

As an example, their current cost structure is around $0.18c per meter of ABS / PLA. If the company
is able to develop a 200mm3 filament print, it would cost around $20 - $30 to make, and to sell for a
custom order it would generate $400+ (not including texturing, colouring and rendering). The
revenue, cost structure and value proposition currently is extremely well thought out and is easily
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determined based on consumer demand (which can be easily catered too). Finally, the customer
segments are aimed at 19 25-year-old females and males as majority of the companys intake is
based on young adults to adults who want business or personalised orders (gaming, engineering,
educational based orders). By utilising this age group and dictating unique orders to improve customer
relationships, the business currently is prospering albeit at a slow pace. This leads into the last
element of the current BMC which is channels, where Invana 3D is currently lacking. The marketing
is primarily DSMM oriented (digital social media marketing) with some aspects of social / services
marketing for consumers. Very little is being done to personalise promotions is focused on website
and Facebook based orders. If the company re-arranged this in their BMC to focus on a multitude of
aspects such as e-mails, Instagram, bundles and analysis competitors using SWOT and PESTLE,
Invana can maximise the profitability within their segmented target market.
Ultimately there are a multitude of elements which do and dont work for Invana 3Ds BMC analysis.
Currently, they support a very strong resource, key activities, customer relationships, value
proposition, cost structure, revenue stream and customer segments. By utilising cheap materials and
catering to each consumers needs based on quoted materials and products, the company is able to
generate a large sum of profit. However, on the negative aspect, having no key partners to share in
material / product support and very little marketing channels, the company is lacking a fundamental
element that all marketers and entrepreneurs need, which is exposure. If they remodelled the BMC to
focus primarily on exposure, Invana would be able to boom within the Gold Coast district within the
next 5 to 10 years when 3D printing inevitability revolutionises the market place.

Section 2.0: Mapping the Environment

According to 3Dprint.com, the idea of 3D printing can be mapped out to as early as 1986. This is
when the first patent was distributed for the idea of printing in 3D. Since then, the market for 3D
printing has taken off globally. Presently, 3-D printers can not only handle materials ranging from
titanium to human cartilage but also produce fully functional components, including complex

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mechanisms, batteries, transistors, and LEDs (Cohen 2014). Invana 3D printing in the Gold Coast
and Robina area currently uses different forms of plastic, nylon, and different plastic colouring
utensils as far as materials go. The abilities for this new technology are quickly progressing which in
turn is making the speed of production quicker and lowering the costs. As this happens, the
opportunity for advancements into the manufacturing industry is broadening. Currently 3D printing is
making the economy rethink the way the manufacturing business operates, and the ability to use this
technology in the future for any type of manufacturing is very possible. The technique of using 3D
printing instead of normal manufacturing processes could reduce the production costs as a whole for a
business. Research shows that it could have an impact of up to $550 billion a year by 2025 (Cohen
2014). As far as competitors go, Invana has many competitors on the Gold Coast alone. There are
over fifteen other 3D printing businesses that this company has to compete with. However, judging by
the rise of 3D printing, Invana still receives plenty of customers because of the need and want for this
new technology. People of all ages from all over Australia submit orders to Invana for their printing
services. The demand for this service is on the rise and will most likely continue to rise as time goes
on. The demand for this product should encourage the manufacturing industries to embrace 3D
printing because it will have an even bigger impact on economies and society than the internet
according to an Australian technology specialist (Sedghi 2015). Most people think that this
technology will be like some other forms of new technology that are a hit the first few years and then
fizzle out and eventually fall out of popularity. However, studies are showing that 3D printing will be
far more than a niche tool and will likely transform everything about the way we live within a
matter of years (Sedghi 2015). It would be extremely beneficial for companies to embrace the new
technology rather than avoid it. Once the ball gets rolling on this new way of manufacturing, it might
be too late for companies that have not yet conformed to the updated technology.

Section 3.0: Other Research Tools

Invana 3D printing currently has a primary consumer market of males and females aged 18-28,
however the market as a whole consists of a wide range of people of all ages. As of right now, 3-D
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printing has become one of the most talked-about technologies. Stock prices of the four publicly
traded makers have soared, and shipments of desktop printers used by hobbyists and small businesses
have increased dramatically (DiChristopher 2013). While current sales are great for Invana, that
might change over time. Research from both CNBC and 3Dprint.com shows that desktop sized 3D
printers could put Invana and other 3D printing businesses out of business. The fact that 3D printers
are now being made small enough to fit on a regular sized desktop might become a huge threat.
Invana currently relies on the fact that the majority of the population does not own their own 3D
printer and therefore have the need for the service that Invana provides. Invana might have to conform
in the future to meet the need of consumers such as bigger manufacturing companies that require
larger products to be printed. This would be an equitable transition though, because theres growing
use in the aerospace and automotive and other industrial markets who will require this service
(DiChristopher 2013). Other than the worry of smaller sized printers overtaking the industry, there are
some other concerns such as the boundaries of what can and cannot be printed in 3D. While 3D
printing is an exciting and cost efficient new opportunity for this world, there are some definite
concerns as to the limits of 3D printing expanding. If printing in 3D were to grow into a possibility of
people having their own printer in their homes, there is risk of 3D printed guns and there being no
safety concerns in the manufacturing process (Sedghi 2015). Although these are some minor
setbacks in the draw of this amazing new technology, the future equity of 3D printing might be vastly
underestimated. The possibilities of 3D printing are endless and could go so far as to benefit nations
across the globe. With the technology of 3D printing and the possibilities of what it can create, we
could be talking about materials and printers valued at over $50 billion sold each year (Krassenstein
2014).

Section 4.0: Original Business Model Canvas Analysis

The original business model canvas completed for Invana 3D printing composed of the standard
factors that would be found in a simple Business Model Canvas structure. Referring to the figure
(Appendices 1: Sourced from assessment piece #3, 2043MKT Entrepreneurship and New Business
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Ventures, Semester 1 2016) below the BMC sections include key partners, key activities, value
propositions, customer relationships, key resources, channels, cost structure, revenue streams and
customer segments. Combining these factors and listing sources for each section within the business
of Invana 3D printing, a detailed breakdown of each segment and what part of the business connect
with each sections has been provided.
The company, Invana 3D, works in the field of 3D printing and is based on the Gold Coast, though the
customer base stretches across south coast of Queensland. Currently, Invana 3D has no key partners
within the business and is operated by 3-4 staff members on a week to week basis. This system is
effective for staff, although benefits of permanent roles within the business, either through full time or
part time employment, as well as an increased number of new employees in the company on a casual
basis, could increase effectiveness by spreading the work load and hours amongst new and existing
staff. This could save wages in the company and increase the engagement between the staff members
and the expanding customer group. The value propositions of the business are about offering a
solution for cheap, simple and extremely effective materialistic printing services, reaching out to
consumers who wish to have personalised 3D objects printed to their wants and needs (Invana 3D
Online, 2016). Items that are printed through the company include cosplaying materials and
accessories and household appliances and currently Invana 3D are quite successful in this market, as
due to consumer profits, the business have been able to purchase 5 3D printing machines.
Key activities and key resources feature the basic operations made by the business. Invana 3D offer
personalised prints and products for each and every individual customer. This benefits the business in
the way of making the customer feel unique and special as they are being engaged on a face to face
basis. The resources for the business are the standard for whats expected of a 3D printing company,
including a 3D printer and two standard types of printing materials, ABS and the more fragile
material, PLA. The cost structure for the products is broken down to 18c per meter of materials,
whether it be ABS or PLA and the costs of running the machinery to print such products. Cost
structure relates directly to revenue streams, which are earnt through the sales of the prints. The price
of the materials is added with the extra costs to the print the products including machinery running
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costs, colours and fillings for the prints. The end result of a print could equal to $200-$500 even
though the materials may only add to $50 in total.
Customer segments of the niche market for the company include young adults aged 19 25 years old,
both male and females. Generally, the main products that the company produce are cosplaying
material as well as collectible figurines and accessories and model hunting gear, which can also be
collectibles (Invana 3D Online, 2016).
Due to the expensive amount of these products, customers understand and can guarantee that they are
getting their moneys worth, as the products are high quality and long lasting being a result of high
duty of care taken by Invana 3D during the printing process. As long as the customers product needs
are able to be formatted correctly, then the product is achievable. Customer relationships are a major
part of the business, considering the cost of their products are heavy. Personalising and showing
empathy during the purchase process are vital parts into creating frequent and satisfied customers. As
staff members of the business are the same age group of the main customer base, personal and high
quality service is provided. Staff members contact each customer through email or, as a more
customised approach, through social media platforms such as instant messaging and even calls or
texts, as Malthouse, et al., quotes (2013, p. 270) The emergence of social media also offers
companies opportunities to listen to and engage with their customers, and potentially to encourage
them to become advocates for their products. Social media communication channels give Invana 3D
an unexpected advantage against competitors as the only channel for the business are enquires and
orders which are filtered through the company s website. Invana 3D are linked to Instagram and
Facebook, enabling customers to engage with business after the purchase process. Invana 3D are
becoming a well-known company and the business model is an effective and highly affordable model.

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Section 5.0: Issue Identification and Prioritisation

Issues within the transport faction of Invana 3D printing compromises of a breakdown of various
factors, including traffic and delivery driver conditions as well as product disfigure and breakage
during delivery.
A delivery for a customer can be effected by the either the traffic conditions, which is subject to where
the delivery is being made, and the state of the driving conditions, which also affects the factor of
product stabilisation. Due to the wide customer base, though the company is based on the Gold Coast,
orders can be delivery to the customer, according to the order instructions. For example, a print that
has been ordered through the company by a customer based in Brisbane needs to be delivered at a
time and place, most likely the customers home address, that is most convenient for the customer.
Traffic conditions from the Gold Coast to Brisbane changes depending on the time of day, i.e. peak
hours and off peak hours. Other factors such as unexpected car accidents or road works can also affect
the travel and delivery times.
Breakage and disfigure of the products occurring during travel time of the delivery process is another
issue for the company. This can also relate and depend on the drivers experience and skills as well as
the conditions of the road and weather during the delivery process. Ensuring disfigurement and/or
breakage does not occur during delivery is the highest priority of the two main delivery issues because
if a product is broken during the delivery, it results in loss of materials that were used in the making of
the print and will result in customer loss, due to the extra wait times of remaking and re-delivery of
the product. In the case of disfigure of products, the same outcome can occur with customer loss, as
the result of disfigure means the company has to return to the business to repair and extend delivery
times will ensue.
These two delivery issues are the sectioned with the last part of the product life cycle, and link
directly to customer relationships. If a customer is unsatisfied with a product, whether the reason is
because of print disfigure or breakage during delivery, or the product is not what the order specified,
the business risks losing that customer. The issues of delivery reflect the importance of keeping and

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maintaining customer relationships as well as business delivery systems and efficiently, so it is a vital
factor for the companys sales.

The majority of issues that occur when 3D printing is usually resulted from the original print itself.
When providing a printing service for a client there is a lot of complications and errors that will
negatively impact printing. Some of the issues identified below and minimal risk, and some have
catastrophic implications if left unattended.
When printing on a bed that has not reached the optimal temperature the print will instantly fail when
attempting to construct a support bed. This is because when the heated filament attempts to hold onto
the heating bed it rips and tears, resulting in a deformed and unusable print. To rectify this ever
potential problem, a strong adhesive must be applied to a glass heating bed before extrusion begins.
Overheating is a major concern for elongated prints. Overheating typically becomes a problem for
high-quality prints with a predicted printing time of 10+ hours. With long printing times like this, it is
difficult to track the progress of the print and also observe vigorously for imperfections and flaws that
the consumer will notice. The only real proper defence against the ever-looming threat of over
exposed heating is to invest in a higher tier / brand of printer. Typically speaking the higher quality
brand of printers make smaller problems (such as knowledge of filament printing heads) significantly
less common, while also producing finer value prints. Finally, warping is the most likely problem to
witness when printing a design. Warping occurs when the temperature outside the 3D printing
environment is significantly different to the temperature inside the printer. Warping disfigures the
plastic and causes it to harden or soften much faster than intended and causes the printing spout to
scrap over previous layers and print incorrectly. This issue can be mitigated by 3D printing in a
controlled environment where the internal and external temperatures and be monitored and changed
according to the design process.

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Section 6.0: Revised Business Model Canvas 2

The original business model canvas focused primary on many aspects of business growth and
development, however fails to provide resources towards key partners and channels section.
McQuaid (2012) states that, partnership within a business is crucial towards its growth and
development within its marketplace. With this information in mind Invana 3D should attempt to
attune its business model canvas towards partnering with another external business that will enhance
or positively impact the value proposition of the consumer. Not only are key partners a section that is
neglected within the current BMC, channels are too.
Having online exclusive channels forces the consumer to only use that method of contact for exposure
and can have a detrimental impact on how the business is perceived and operated within a
marketplace. As the extended 7 Ps of marketing tell us, processes and promotion are a fundamental
building block for any business, online, offline global or local. Neglecting these basic principles will
guarantee a loss in revenue and penetration of the marketplace. To counter-act this catastrophic
problem, Invana 3D should heavily invest in offline, physical locations where consumers can interact
more directly with the interactive 3D printing processes. This would also in turn positively impact the
physical evidence aspect of Invana as well. The other 7 sections of the BMC are operating at an
optimal level for business development and growth, there are minor modifications than can be made,
however the pay off and implementation time would not outweigh the benefit.

Section 7.0 Anticipated Effects

Ultimately when comparing the original BMC and the revised BMC, Invana was clearly lacking in the
channel and key partners area. As detailed in section 1 and 6, the theory of partnership specifically
details the importance as to why these two elements of the BMC should be focused upon. Alongside
an analysis of the current marketplace, issues plaguing the companys procedures and identifications
of said issues, Invana has a lot of work cut out for them to improve upon their profitability and
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sustainability. If the company can evaluate its current model into the new one utilising Ronald
McQuiads Theory of Partnerships, evidently it will be able to prosper in the future to its fullest
potential by exemplifying all aspects of the BMC.

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Appendix:
Appendices 1: Original BMC for Invana 3D

Figure 1 Invana 3D Business Model Canvas. Sourced: Assessment Piece #3, 2043MKT
Entrepreneurship and New Business Ventures, Semester 1, 2016

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Appendices 2:

Figure 2 Invana 3D New Business Model Canvas. Sourced: Assessment Piece #4, 2043MKT
Entrepreneurship and New Business Ventures, Semester 1, 2016

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References
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2016, from http://www.academia.edu/738799/1_The_theory_of_partnership.
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from https://all3Dp.com/common-3D-printing-problems-and-their-solutions/.
3. Cohen, D., Sargeant, M., & Somers, K. (2014, January). 3-D printing takes shape. Retrieved
May 30, 2016, from http://www.mckinsey.com/business-functions/operations/our-insights/3d-printing-takes-shape
4. DiChristopher, T. (2013, November 15). What investors need to know about 3-D printing.
Retrieved May 30, 2016, from http://www.cnbc.com/2013/11/15/what-investors-need-toknow-about-3-d-printing.html
5. Grunewald, S. J. (2016, April 07). Global 3D Printer Market Up 19% in 2015 as Industrial
and Commercial 3D Printer Sales Drop, XYZprinting Remains on Top. Retrieved May 30,
2016, from https://3Dprint.com/128648/global-3D-printer-market-up/
6. Krassenstein, Brian. "Why The Future Growth of The 3D Printing Market Is Being
Underestimated." 02 Apr. 2014. Web. 30 May 2016, from https://3Dprint.com/1925/why-thefuture-growth-of-the-3D-printing-market-is-being-underestimated/
7. (2016). layering issue - Topics - Wanhao Duplicator I3 Owners - Groups ... Retrieved June 1,
2016, from https://www.thingiverse.com/groups/i3/topic:6501.
8. Malthouse, E. C., Haenlein, M., Skiera, B., Wege, E., & Zhang, M. (2013). Managing
Customer Relationships in the Social Media Era: Introducing the Social CRM House. Journal
of Interactive Marketing, 27(4), 270-280. doi:10.1016/j.intmar.2013.09.008

9. (2015). Marketing Theories The Marketing Mix - Professional Academy. Retrieved June 1,
2016, from http://www.professionalacademy.com/blogs-and-advice/marketing-theories---themarketing-mix---from-4-p-s-to-7-p-s.
10. Sedghi, S. (2015, April 01). 3D printing will have a bigger economic impact than the internet:
Expert. Retrieved May 30, 2016, from http://www.abc.net.au/news/2015-04-01/3D-printingimpact-bigger-than-internet-expert-says/6365296

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