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MakerBot Industries


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MakerBot Industries

  1. 1. Trends in Manufacturing• Robots and information systems replace workers in the more mundane, repetitive task areas• Demand for information and automation systems in manufacturing is soaring ▫ Systems need to deliver high-quality, reliable and repeatable solutions, improving their processes• From Traditional Engineering and Construction to Architecture and Medical industries are looking for these types of efficient and cost-effective solutions
  2. 2. Industry Transformation• Transforming raw materials into finished goods, efficiently and cost-effectively, does not have to be on a large scale• The ability for the masses to copy and reproduce physical objects individually is the next important transformation of the manufacturing industry• Significantly reduces shipping costs
  3. 3. Radical TransformationCore Assets CORE ASSETS1) Subtractive vs Additive Manufacturing technq.2) Knowledge Changes Threatened Not ThreatenedCore Activities Threatened Radical Change1) Replicable on Smaller CORE ACTIVITIES - “Additive” vs “Subtractive” (and Local) Scale manufacturing techniques Creative Change2) Customer relations - Activities replicable on change smaller scale Threatened Progressive Not Intermediating Change Change
  4. 4. Critical Success Factors• User involvement ▫ Ability to retain and develop a large user base regardless of peripheral industry served• Acquiring New Customers ▫ Through branding and being a pioneer in the industry• Innovation ▫ Continually improving upon design and capabilities of product
  5. 5. 3D Printing Industry Analysis Barriers to Entry (Medium) Government (High) • High technology turnover • Copyright Laws • High focus on quality • Idea of Ownership changing • Requires significant education • Intellectual Property changing • Requires high capital investmentSupplier Power (Medium) Consumer Power (High)• Few materials absolutely needed that Competition (Medium) • Wealth of free information designers can’t create themselves • Many niche players • Make many technological changes to (whole idea around open source) • Differentiation Strategy end product• Specific materials can present • Interest of consumers drives demand • Consolidation in the industry barriers (high cost, high lead (not Need), so highly unstable time, but only for end consumer) Substitutes (Low) • Very specialized products • Relatively low switching costs (as new tech increases, prices drop) • But you only need one device
  6. 6. Rate of Innovation DiffusionRogers 5 Factors Relative Advantage Observability Compatability Trialability Complexity
  7. 7. 3D Printing Value Chain • R&D, Testing • Designers, Builders • Printing Devices • Distribution Channels • Tech Community (Forums)
  8. 8. 3D Printing Value Chain • R&D, Testing • Designers, Builders • Printing Devices • Distribution Channels • Tech Community (Forums)
  9. 9. MakerBot Industries• WHO ▫ Adam Mayer , Zach "Hoeken" Smith, Bre Pettis• WHAT ▫ Brooklyn-based company founded in January 2009 ▫ Producing open source hardware, specifically 3D printers• WHY ▫ Goal to bring desktop 3D printing into the home at an affordable price. ▫ Democratizing Manufacturing• HOW ▫ Smith was a founding member of the RepRap Research Foundation ▫ Demand for the kits was so great in 2009 that the company solicited MakerBot owners to provide parts for future MakerBots from their own MakerBots. ▫ Seed funding + Venture capital
  10. 10. Evolution of MakerBot • The RepRap ProjectOpen Source • End goal of Self ReplicationFabrication • MakerBot Industries • “As complicated as assemblingDo-It-Yourself Kits IKEA furniture” • Thingiverse Hyper- • “Peer-to-Peer” exchangeCustomization
  11. 11. MakerBot Industries• Resources ▫ Knowledge and Expertise from RepRap project ▫ Significant Funding (has increased the press coverage)• Competencies ▫ Engingeering/Robotics expertise ▫ Dedication to Open Source fabrication• Competitive Advantages ▫ First Mover with Thingiverse ▫ Knowledge and Data aggregator (Experts) ▫ Is the company to replicate (see Ultimaker)
  12. 12. MakerBot EvolutionRepRap Project MakerBot MakerBot MakerBot “Darwin” “CupCake” “Thing-o-Matic” “The Replicator”
  13. 13. Competitors – Desktop + Kits $19,900 $1,499+ $1,299+9.21 x 7.58 x 5.85 5.5 x 5.5 x 5.25 5.5 x 5.5 x 5. 5
  14. 14. Open Source Complexities €1,194+ ($1,584) 8.3 x 8.3 x 8.6 $1,749 8.9 x 5.7 x 5.9
  15. 15. Competitors – Commercial ServicesOffice Printers $24,999+
  16. 16. MakerBot Fit in the Industry Small Build Volume Ultimaker MakerBot Hypothetical: Stratasys? New: 3D SystemsCommercial Individual Objet Use Use 24 Stratasys Choke Points: - Scale of Product Concept 3D - Supplier Prices - New distribution channels Systems - Retaining Ownership of Userbase Platform Large Build Volume (Thingiverse)
  17. 17. How Well is the Firm Doing?• Speed, Size, Scope 2009 2010 2011 2012Founded and $10M invested byReceived Seed Foundry GroupFunding $75,000 and joins boardCupcake Model Thing-O-Matic The Replicatorreleased Model released Model released750 Units Sold 2300 Units Solds 3500 Units Sold Distributed in 19= $562,500 = $5,520,000 = $8,400,000 Countries5 Employees 25 Employees 54+ Employees
  18. 18. Current Challenges Presented• Intellectual Property Issues• Nature of Open Source Fabrication - To share, or not to share?• Smaller Players leading the charge ▫ Open to large organization resistance to this movement claiming loss of tangible assets (loss of sales, lower profits, etc.) ▫ Policy makers will have to weigh on these tangible losses to the future potential benefits• Economic Implications ▫ If anyone can print what they need in-home, what happens to those goods manufactured in China?• Potential White Spaces ▫ Large build volume for personal use ▫ Span small scale commercial and personal need
  19. 19. How is Firm Navigating Challenges• Vulnerable to Open Source complications ▫ New Competitors “stealing” work ▫ However, first-mover with Thingiverse gives advantage• Completely replicable Business Model ▫ Including all “proprietary” technology and knowledge – but this is their mission• Has yet to be seen how involved MB is in Legal Copyright battles• No growth strategy ▫ Simply putting out newer and newer models ▫ Is there a limit to perfection from the mass? ▫ As demand increases, need to adjust distribution process
  20. 20. Trajectory of Firm + Industry Emergence Convergence Coexistence Dominance Sales Volume Traditional Manufacturing Additive Manufacturing Potential MB Trajectory Time
  21. 21. Trajectory of the Industry• 3D printing will not be used by “everyone to make anything” but rather be used by some to make the things they care about most.• This path will slow down mass production and give options to overseas manufacturers, but not significantly.• Goal: enable the manufacturing of ideas ▫ The 3D printing industry could anticipate on and respond to demand for any type of specific goods.
  22. 22. Trajectory of the Firm• Dependent on Strategic Choices: ▫ Be a key player in legal complications to the copyright of ideas. ▫ Position itself as a leader in the movement to push 3D printing into individual use ▫ Continue to innovate, Move towards bigger platform, Acquire New Customers