Product concept based on 3D-printing technology: product lifecycle analysis and business case.

1. Team members
Vincent Breton – Francesco Castiglione
Linda D´Amario – Sam Yakah – Luca Zatta
Technology Management
1

2. What is our product ?

A customizable, fancy and safe 3D printed
watch bracelet for children.

A GPS tracking chip is sealed in the bracelet and
we provide (in a partnership) an application to
locate the clock

Toy-like robust accessory that appeals to
parents and children alike.
2

3. 3

4. How do we create a
competitive advantage ?

We do not bring radical innovation but
incremental.

Instead, our products benefits from well-
established technologies:
o 3D printing
o GPS tracking

Low technology risks, improved costs, quality
and variety performance. 4

5. Product lifecycle concept
 We have established a strategy for each of the
cycles.
 3D printing allows for an easy transition towards
new products when maturity is reached.
5

6. Project portfolio

Bread and Butter: low-risk and low-return.

Through low added-value and low technical
risks, we gather multiple functions to our
product that make it a niche.
6

7. Technology Readiness Level
7

8. Technology Readiness Level
 Technology Readiness Level (TRL 4)
 Basic technological components are integrated
to establish that they will work together.
 This is relatively “low fidelity” compared with
the eventual system.
8

9. Benefiting from 3D printing

30 years of innovation: 3D printing is technologically
mature.

Consumer commodity: efforts are now centered on
relability and cost.

Our product fits in this stage: solid, reliable and low-
cost.

3D printing for enterprise applications is not a fluke:
 Slope of enlightenment;
 Similar business exist for inspiration. 9

10. Competing with the state of the
art

Traditional manufacturing processes are
dominant.

Our use of 3D printing is in the leading edge
category:
o 3D printed accessories already exist in niche
marketplaces;
o Still needs to prove its worth as an
alternative to traditional ways. 10

11. Defining our innovation
•
Our use of 3D printing can be considered a
process innovation.
•
We aim to get lower marginal costs and
better flexibility.
•
Incremental innovation with the use of
new processes for existing systems and
also linking with an online tracking app.
11

12. Target customers:
 Parents with children from 3 to 7/8 years old
(after they will have their own phone)
 In NORDIC COUNTRIES: FINLAND, SWEDEN &
NORWAY.
WHY?:
Because in this countries people and children are
more INDEPENDENT and the territory is wide
(e.g. Sweden density is 20 inh/KM2 so the
children grow up in nature)
12

13. Population Infograph in Norway
Source:Link to this graph: http://populationpyramid.net/norway/2015/
13

14. Source: Link to this graph: http://populationpyramid.net/finland/2015/
Population Infograph in Finland
14

15. Population Infograph in Sweden
Source: Link to this graph: http://populationpyramid.net/sweden/2015/
15

16. TAM (Total Addressable Market)
Children 3 to 7:
•
In Finland: 350.000 (3% of total pop.)
•
In Sweden: 270.000 ( 3% of total pop.)
•
In Norway: 250.000 (4% of total pop.)
TOTAL addressable customers: 920.000 people
supposing 1/400 (0,25% market) = 2300 clocks
16

17. Estimated Revenues
•
2300 CLOCKS = estimated revenues with
60$=55€ clock= 126.500 €
(so there is a margin of improvement of about
20% (but up to 50% if we sell CUSTOMIZED
ones)
17

18. Production Calculation
•
Estimated production time = (8hrs per clock)
•
2 per day x 3 printers (x26 working days
monthly) = 156 (clocks x month production)
•
Necessary time to fullfill the market estimated
demand (2300) = 14,7 months
•
VARIABLE RAW MATERIALS x month = 10 nylon
wraps per month 400€ (10 bracelets per wrap)
---) annual price 4800€ (but can be lowered)
18

19. SALES & REVENUES
•
1st year REVENUES= 63.360€ ( - 48.000 fixed
costs* -4500 (3) printers– 4800 materials) = 6.060€
ANNUAL PROFITS
•
*FIXED COSTS:
Labour (1 person 2200€ per month) Renting
office 1800€ per month (including bills) Raw
materials 1500€ 3D PRINTER
•
BREAK EVEN point = 11 months 19

20. Future Development Plans
(3-5 years)
1. Increasing our market share (from
0.25%)
2. Expanding in new markets (UK,
Germany,…)
3. Switching to the production of pet
tracking bracelets.
20

21. Further Development
 After the 3rd year Switch to PET bracelets
(starting the new development in the last
semester of 2nd year)
 Dogs in Sweden are 765, 886 (registered owners
is 566, 107)
 Dogs in Finland 600,000 (of which 450,000 are
purebred).
Totally: 1.100.000 DOGS in NORDIC COUNTRIES
Sales Estimation: 1/500 = 2200bracelets x 50€ =
110.000€
21

22. Just to prove it!
In Norway they spent 53$ (=49€) per month just in
food per dog (Twice as much than in Switzerland)
That means: 49€ X 12= 588€ as an average annual
expense so They care!
SOURCE: http://www.theatlantic.com/business/archive/2012/11/the-dog-economy-is-global-but-what-is-
the-worlds-true-canine-capital/265155/
22

23. SWOT Analysis
Strengths
Opportunities Threats
Weaknesses
SWOT
23

24. SWOT Analysis

Does not need lots staff

Low-skilled staff

Simple supply chain

Does not need a long period for being developed

Low price of the material and of the parts

Low price for the customer

Well-seen by the customers for his function

Easy replacement for damage parts/components (es. GPS)

Resistant (Kid-proof)

Good marketing campaign

Dependency by the suppliers

Impossibility to track the kid inside a building

Loss of the product

For the age over 7, parents/kids could prefer a smartphone
Strengths
Weaknesses
24

25. SWOT Analysis

Products similar to ours in the market are expensive

Sellable at a lowest price in comparison to the other competitors

Exportation of the same product in the pet market (with just the GPS tool)

Possibility of reproduction by the competitors

Competitors could develop a similar product but with more features

Increment of the production costs

Suppliers could make deal with the competitors

Possible reproduction by the Chinese companies
Opportunities
Threats
25

26. PEST Analysis
Political Factors
Social Factors Technological Factors
Economic factors
PEST
26

27. PEST Analysis

Possible reproduction by the Chinese companies

Possible arise of VAT

Regulatory law in Europe for children's staff

More liberty for the kids (> fear for the parents
means < freedom fo the kids to run outside)

Market demand for mass-produced, customizable goods;

Lower prices;

Assemblies of multiple functions
Political Factors
Economic factors
27

28. PEST Analysis

Parents want to feel safer

Kids can see it like a fancy toy

Granparents could be eager to give it to the nephews as a present

30 years of innovation in hardware, software and materials used: mature technology
 New processes such as FDM (low-cost fused deposition modeling);

Open source;

From prototyping to mass producing;

Introduction to metal-working industry in 2010.
Social Factors
Technological Factors
28

29. Thank you for your attention!
29