Module: Technology & Innovation Strategy

3D Printing
Technology

Instructor: Alessio Cozzolino

Group 5:
Claire Greene
Hafeez Khan
Kexin Zhang
Table of Contents

1 What is 3D printing? 5 Teece’s model

2 Evolution of 3D Printing 6 Challenges of 3D Printing

3 3D Printing Business Model 7 3D Printing & Supply Chain

4 Creating Value & Capturing Value

What is 3D Printing?

(My3Dconcepts, 2017)
Traditional Manufacturing vs 3D Printing

Nature – Subtractive Nature – Layer adding

More waste Less waste

Complex geometries
Complex geometries are
can be created easily
difficult

Not move closer to end

Manufacturing locally
users
Ideal for customisation
Less room for customisation

(Warburg, n.d.)
 The Evolution of 3D Printing

1990s 2010s
More Technologies The Maker Movement Future
And More Adoption

1980s 2000s 2020

Setting the Foundations 3D Printing Explodes 3D Printing Responds
of 3D Printing To COVID-19

(Team, 2021)
 Is 3D printing
a disruptive innovation?
Phase 0 Trigger Conditions
Phase 3
P • 3D Printing attributes > Traditional methods
e (complexity, flexibility, customizability and speed to
r
f market)
o
r
m
a Phase 2
n
c
Phase 1 Niche Markets
e Phase 1
Phase 0 • Attributes are not relevant for all mainstream customers
• The technology currently underperforms
(cost/item on a large scale, manufacturing speed, materials
Time and quality)
Disruptive Innovation Framework • 3D Printing gained ground in high-tech, niche markets
Source: Christensen et. al (2013)

(Balázs, 2015)
 Is 3D printing
a disruptive innovation? Phase 2 Development Phase
• Speed doubles every 24 months
Phase 3 • Desktop 3D printers has initiated disruption on the
P
e
low-end consumer market
r • Industrial systems are applied in manufacturing
f processes
o
r
m
a Phase 2
n
c
Phase 3 Disruptive Innovation
e Phase 1 • Will disrupt manufacturing, creating new markets and
Phase 0
driving the transition from mass production to mass
customization
Time • Will lower the barriers to manufacturing, benefiting
Disruptive Innovation Framework entrepreneurship and bringing customers closer to
Source: Christensen et. al (2013) product creation

(Balázs, 2015)
 Business Model Disruption

Mass Segmentation Mass Modularization

Offering a few dozen Instead of offering different
versions of a product to 03 04 versions of a product, you offer one
customers with more body with multiple different
predictable needs interchangeable components

Mass Variety 02 05 Mass Complexity

Targets customers who don’t With 3D printing, extremely
need products customized complex shapes and
but have varying & specific designs can be produced
preferences for much lower cost

Mass Customization 01 06 Mass Standardization

One-off products that
Biggest threat to traditional
cater to the individuals
wants/needs manufacturing. High volume
of products being produced
at low cost

(D’Aveni, 2018)
Mass Customization
Traditional business models in the orthodontics, hearing
aid and prosthetics industries are all being disrupted by
mass customization as a result of 3D printing.

In the case of hearing aids, a laser is used to scan the

patient’s ear, this is then converted into a production file
and then printed.

More than 10,000,000 million 3D printed hearing aids

are in circulation worldwide.

The earlier process to manufacture hearing aids

consisted of approximately nine steps. Now it only takes
three steps.

US hearing aid companies converted to 100% 3D

printing in less than 500 days

(D’Aveni, 2018; Sharma, 2013)

Mass Customization in Other Industries

Footwear
Both Adidas and Nike are making 3D
printed trainers that are customized to suit
your feet

Orthodontics
Invisilign are making custom-
made clear braces

Prosthetics
3D printers are being used to create
personalized prosthetics

(D’Aveni, 2018; Sharma, 2013)

 Inventors of 3D printing technology
Stereolithography Selective Laser Fused Deposition
(SLA) Sintering (SLS) Modelling (FDM)
Dr. Carl Deckard and
Inventor Charles W. Hull S Scott Crump
Dr. Joe Beaman
Patent issued 1986 1990 1992
Stratasys acquired
Desk Top
and
Company (Year) 3D System (1986) Manufacturing (DTM)
commercialised in
Corp (1987)
1989
Current assignee
University of Texas
of the 3d printing 3D System Stratasys
system
technology
3D System 3D System acquired Stratasys
Alliances
in 2001
Patent expiration
2006 2007 2009
(Year)
(Patent, 1984; Patent, n.d)
 Innovation (Creating Value)

SLA 3D Printing process FDM 3D Printing process

technology technology

Had weak
All had patent’s imitability due to
registered by the its legal
inventors protection

SLS 3D Printing process technology

(Emre, n.d.; Palermo, 2013; Sukindar et al., 2016)

 Acquisition - Capturing value
3D Systems acquiring small,
3D Systems acquiring DTM Corp medium and large enterprises
• Acquired 41 companies to date
• 14 acquisition from 2011 to end of 2012
• Exploitation alliance is observed
• which were software, materials, printers and
• Complete control over complementary
printable content
assets
• Largest acquisition was simbionix who creates 3D
• Complete control over new technology
virtual reality surgical simulators and medical
(SLS) education resources, used by medical students to
learn how to perform medical procedures and
surgeries.

(Doval, 2019; Pfeifle, 2012)

Teece’s model: who profits from the innovation?

3D Systems acquiring DTM Corp

Imitability: low
1 DTM Corp protected their invention from the
legal mechanism back in1990

Complementary assets: Tightly held

2 DTM had its own manufacturing unit, sales and
marketing unit

(Teece, 1986)
Teece’s model: who
profits from the
innovation?

According to Teece’s model

DTM Corp had highest
bargaining power.

3D System acquired DTM Corp

for $45 million

(Berardi, 2001; Teece, 1986)

 (Minshall, 2016; Howlegg, 2015)

The
Barriers to
Wide Scale
Adoption of
3D Printing

Materials & Processes Design Skills and Education Cost/ Investment/ Standards/ Regulations IP/ Protection/
Financing Security
Some printers Need for People overlook Standards or lack 3D printing gives
Although
can only be used educational the labor thereof is an area hackers a new
decreasing, 3D
with specified programs on associated with of concern way to wreck
printers are
materials design for 3D files 3D printing havoc
expensive to buy
 (DeRossett, 2021)

Jupiter Saturn
Jupiter is the biggest It’s a gas giant and has
planet of them all several rings

Mars Neptune
Despite being red, Mars It’s the farthest planet
is actually cold from the Sun
How 3D printing will impact supply chain management

Improve time-to-
market
Number of
Decentralize components greatly Rationalize
Production reduced with 3D inventory and
Product printing meaning Improved resource
Companies will have
complexity will be logistics
the ability to produce Customization decreased efficiency Reduced need
components closer to 3D printing is more for transport &
More agile supply
home rather than environmentally
chains which can storage of goods
relying on imports
adapt rapidly to friendly as it
market changes creates zero waste

(Knowles, 2019)
Thanks for listening!

Welcome any questions!

 Reference List
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