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BUSINESS MODEL
INNOVATION WITH 3D
PRINTING
Prof. Thierry Rayna
ESG Management School
PROF. THIERRY RAYNA
•

Professor of Economics

•

Department of Economics &
Finance

•

Chair of Digital Business

•

ESG ...
OUTLINE

• Business
• How

Model Innovation

3D Printing is changing Business Model Innovation

• Learning

from the past
PARADOXES
•

Technological innovation = Pinnacle of competitiveness

• Yet
• Less

technologically advanced firms have wipe...
BUSINESS MODEL
INNOVATION
• Is

a means to sustain competitive advantage, especially in a
highly competitive environment

...
BUT…
•

strong inertia associated with business models (especially when they
are successful)

•

harder to see the rationa...
BUSINESS MODEL
INNOVATION
BUSINESS MODEL COMPONENTS
Value Proposition
Product offering
Service offering
Pricing model

Value
Communication
Communica...
EFFECT OF BMI
Radical

Many components, major changes

Disruptive

New industry
New markets

New market
A few components, ...
3D PRINTING AND BUSINESS
MODEL INNOVATION
THE TWO EFFECTS OF 3D
PRINTING ON BMI

• Innovation

in business model components

• Innovation

in business model innovat...
INNOVATION IN BUSINESS
MODEL COMPONENTS
VALUE PROPOSITION

• Technological

innovation = Changes in value proposition

• New

products

• New

services

• But

th...
VALUE CREATION

• Main
• In

impact of 3D Printing technologies

particular:

• value

network

• complementary

assets
MASS CUSTOMISATION AND
VALUE CREATION
• Large

scale mass customisation

• Co-creation
• Customers
• much

leads to higher...
CROWDSOURCING AND
VALUE CREATION
• Crowdsourcing

already led to significant business model
innovation, even to entirely ne...
VALUE DELIVERY

• 3D

Printing increases Value Delivery

• Distribution
• Target

Channels

Market Segments
DISTRIBUTION CHANNELS
• Creates

new Distribution Channels

• Online

services (Cubify Cloud, i.Materialise, Ponoko,
Sculp...
TARGET MARKET SEGMENTS
• So

far, niche market segment neglected because of high fixed
costs

• 3D

printing enables to ser...
HELPER FOR SQUARE

• Sold

over 1,000 units

• Home
• $8

manufactured

a piece
‘KICKSTARTER 2.0’?
• Success
• Lack

of Kickstarter and the likes, but

of scalability

• (Relatively)

production

signifi...
POSITIVE FEEDBACK LOOP
3D printers

Value
delivery

Contribution
Service
Equipment

Crowdsourcing

Value
proposition

Mass...
VALUE CAPTURE
• Positive

impact:

• Reduced
• Negative
• Far

costs & costs passed on to consumers

impact:

more difficul...
+
+

+
+
INNOVATION IN BUSINESS
MODEL INNOVATION
3D PRINTING CHANGES
BUSINESS MODEL INNOVATION
• Beside

changes in components, 3D Printing radically changes
the way to co...
ADAPTIVE AND ‘MOBILE’
BUSINESS MODELS
•

Ability to move business model horizontally to existing or new
markets is a key a...
RAPID PROTOTYPING FOR
BUSINESS MODEL
•

Business Model Innovation by trial & error
•

•

3D printing technologies enable t...
ADAPTIVE BUSINESS MODEL
RAPID PROTOTYPING
Own market

New market

Upstream

Design

Sideways

Downstream

Related market

...
3D Printing = Pay As You Go!
LEARNING FROM PAST EXPERIENCE:
VALUE CAPTURE IN DIGITAL
INDUSTRIES
THE DIGITAL ECONOMY:
A LAND OF OPPORTUNITIES
THE DIGITAL ECONOMY:
WHAT MOST COMPANIES ARE TRYING TO DO
THE MUSIC INDUSTRY
C. 2010
THE DIGITAL ECONOMY:
WHAT GOOGLE IS DOING
THE DIGITAL ECONOMY:
WHAT GOOGLE IS DOING
THE DIGITAL ECONOMY:
WHAT WE ARE DOING
DIGITAL ECONOMICS AIKIDO
• Stop

fighting against nature

• Channel

the strength of
digital economy to your
advantage...

...
{

}

+
+

+
+
{

}

+
+

+
+
WHAT ROLE FOR
CORPORATIONS?
CORPORATIONS =
GATEKEEPERS
TAPPING THE FLOW
TAPPING THE FLOW
TAPPING THE FLOW

Micropayment

Certification service
THANK YOU
trayna@esg.fr
@ThierryRayna
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[London 3D PrintShow 2013] Business Model Innovation with 3D Printing

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Business model innovation is a critical aspect of corporate success, so much in fact that more technologically advanced companies have been wiped out by competitors whose sole advantage was an innovative business model. There is no doubt that 3D printing will lead to countless product and service innovations, but its impact on business model innovation is just as important.
3D printing technologies enable us to reconfigure critical elements of a business model, but more than that, they have the power to completely change the way business model innovation is done. Indeed, they bring the ‘rapid prototyping’ paradigm to business model innovation. Business models can become fully adaptive and ‘mobile’, enabling firms to rapidly move across markets and within their own markets, responding instantly to changes in their environment. This session will focus on these new forms of business model innovation and demonstrate how any firm, even those not involved in manufacturing and 3D printing, can benefit from this new way to innovate.

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Transcript of "[London 3D PrintShow 2013] Business Model Innovation with 3D Printing"

  1. 1. BUSINESS MODEL INNOVATION WITH 3D PRINTING Prof. Thierry Rayna ESG Management School
  2. 2. PROF. THIERRY RAYNA • Professor of Economics • Department of Economics & Finance • Chair of Digital Business • ESG Management School, Paris • Email: trayna@esg.fr • Twitter: @ThierryRayna
  3. 3. OUTLINE • Business • How Model Innovation 3D Printing is changing Business Model Innovation • Learning from the past
  4. 4. PARADOXES • Technological innovation = Pinnacle of competitiveness • Yet • Less technologically advanced firms have wiped out more advanced firms because of a better business model • Technological innovation endangers firms as it renders business model obsolete • Critical importance of Business Model Innovation
  5. 5. BUSINESS MODEL INNOVATION • Is a means to sustain competitive advantage, especially in a highly competitive environment • Among the most sustainable forms of innovation • Continuous business model innovation is an important capability for every firm seeking success in the long term • Firms that put business model innovation at the heart of their strategies have a higher profitable growth than those that do not
  6. 6. BUT… • strong inertia associated with business models (especially when they are successful) • harder to see the rationale for business model innovation and predict its impact • requires a change of mindset: often means abandoning the paradigms that made the firm successful and which are embedded in the firm’s existing business model • business model innovation requires developing new skills and rejecting what made previous success
  7. 7. BUSINESS MODEL INNOVATION
  8. 8. BUSINESS MODEL COMPONENTS Value Proposition Product offering Service offering Pricing model Value Communication Communication channels Ethos and story Value Capture Revenue model Cost structure Profit allocation Value Creation Core competencies Key resources Governance Complementary assets Value networks Value Delivery Distribution Channels Target market segments
  9. 9. EFFECT OF BMI Radical Many components, major changes Disruptive New industry New markets New market A few components, major changes Many components, minor changes Non-consumers Same market, new customers One component, minor change Incremental Inside Same customers Sustaining Outside
  10. 10. 3D PRINTING AND BUSINESS MODEL INNOVATION
  11. 11. THE TWO EFFECTS OF 3D PRINTING ON BMI • Innovation in business model components • Innovation in business model innovation
  12. 12. INNOVATION IN BUSINESS MODEL COMPONENTS
  13. 13. VALUE PROPOSITION • Technological innovation = Changes in value proposition • New products • New services • But that is not all. Oh, no, That is not all…
  14. 14. VALUE CREATION • Main • In impact of 3D Printing technologies particular: • value network • complementary assets
  15. 15. MASS CUSTOMISATION AND VALUE CREATION • Large scale mass customisation • Co-creation • Customers • much leads to higher value than mass production become a key component of value network larger!
  16. 16. CROWDSOURCING AND VALUE CREATION • Crowdsourcing already led to significant business model innovation, even to entirely new form of business models (Kickstarter, Threadless) • 3D Printing takes crowdsourcing a whole step further • Crowdsourcing manufacturing (Additer, Kraftwürz and MakeXYZ) = wider Value Network • Existing 3D Printers become Complementary Assets
  17. 17. VALUE DELIVERY • 3D Printing increases Value Delivery • Distribution • Target Channels Market Segments
  18. 18. DISTRIBUTION CHANNELS • Creates new Distribution Channels • Online services (Cubify Cloud, i.Materialise, Ponoko, Sculpteo, Shapeways) • Printshops (iMakr, MakeBot) • Customers themselves • Can complement/replace mass-manufacturing
  19. 19. TARGET MARKET SEGMENTS • So far, niche market segment neglected because of high fixed costs • 3D printing enables to serve niche markets regardless of how small they are • monetize the ‘long tail’!
  20. 20. HELPER FOR SQUARE • Sold over 1,000 units • Home • $8 manufactured a piece
  21. 21. ‘KICKSTARTER 2.0’? • Success • Lack of Kickstarter and the likes, but of scalability • (Relatively) production significant demand needed to initiate • May be complicated to produce more batches (irregular demand) • 3D Printing removes these constraints and is fully scalable
  22. 22. POSITIVE FEEDBACK LOOP 3D printers Value delivery Contribution Service Equipment Crowdsourcing Value proposition Masscustomisation Value creation
  23. 23. VALUE CAPTURE • Positive impact: • Reduced • Negative • Far costs & costs passed on to consumers impact: more difficult to capture value • Innovative Revenue Model and new Profit Allocation
  24. 24. + + + +
  25. 25. INNOVATION IN BUSINESS MODEL INNOVATION
  26. 26. 3D PRINTING CHANGES BUSINESS MODEL INNOVATION • Beside changes in components, 3D Printing radically changes the way to conduct Business Model Innovation • ‘Mobile’ Business • Rapid Models Prototyping for Business Models
  27. 27. ADAPTIVE AND ‘MOBILE’ BUSINESS MODELS • Ability to move business model horizontally to existing or new markets is a key aspect of business model innovation • • • Often risky, because significant investments have to be made before even entering the market. 3D Printing reduces costs: products manufactured on demand with minimal costs 3D printing technologies can enable firm to rapidly move upstream or downstream and change the length and width of business model
  28. 28. RAPID PROTOTYPING FOR BUSINESS MODEL • Business Model Innovation by trial & error • • 3D printing technologies enable trying out various business models at a much lower cost • • Significant risk and costs size of the testbed actually increases with the adoption of 3D printing technologies Ability to rapidly try and test ideas to significantly increase the speed of business model innovation
  29. 29. ADAPTIVE BUSINESS MODEL RAPID PROTOTYPING Own market New market Upstream Design Sideways Downstream Related market Manufacturing Distribution
  30. 30. 3D Printing = Pay As You Go!
  31. 31. LEARNING FROM PAST EXPERIENCE: VALUE CAPTURE IN DIGITAL INDUSTRIES
  32. 32. THE DIGITAL ECONOMY: A LAND OF OPPORTUNITIES
  33. 33. THE DIGITAL ECONOMY: WHAT MOST COMPANIES ARE TRYING TO DO
  34. 34. THE MUSIC INDUSTRY C. 2010
  35. 35. THE DIGITAL ECONOMY: WHAT GOOGLE IS DOING
  36. 36. THE DIGITAL ECONOMY: WHAT GOOGLE IS DOING
  37. 37. THE DIGITAL ECONOMY: WHAT WE ARE DOING
  38. 38. DIGITAL ECONOMICS AIKIDO • Stop fighting against nature • Channel the strength of digital economy to your advantage... • ... without harming your customers
  39. 39. { } + + + +
  40. 40. { } + + + +
  41. 41. WHAT ROLE FOR CORPORATIONS?
  42. 42. CORPORATIONS = GATEKEEPERS
  43. 43. TAPPING THE FLOW
  44. 44. TAPPING THE FLOW
  45. 45. TAPPING THE FLOW Micropayment Certification service
  46. 46. THANK YOU
  47. 47. trayna@esg.fr @ThierryRayna
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