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Print-A-House, Inc.
 Final Presentation for MT4002
Technology Management Strategy

            6th November 2012

                     By:
        Vincent Jayalie (U094718J)
          Lee Jin Yuan (U094655L)
            Vincent (U096043R)
    Clovis Chew Xuan Hao (A0067193Y)
          Beatrix Tan (U094727U)

    Print Our House. Print Our Future.
Presentation Content
 Introduction
    History and Prospect of Contour Crafting
    Contour Crafting – “Additive Manufacturing” Technology in Construction
    Milestones of Contour Crafting Technology

 Corporate Profile: Print-A-House, Inc.
    Corporate Vision, Mission and Strategic Positioning

 Value Proposition: How is it applicable to our target market?
 Value Capture
 Scope of Activities
 Strategic Control of Technology
 Impact Analysis
 Conclusion: How Print-A-House can influence the future of the construction
   industry

 Q &A
                            Print Our House. Print Our Future.
Contour Crafting
       Introduction




 Print Our House. Print Our Future.
Conventional Construction
 Traditional brick-laying methods
 Pre-fabrication processes : Parts/Modules manufactured off-
  site, then assembled together on the construction site

 Labor-intensive with high degree of repetition




                  Print Our House. Print Our Future.
Imagine the possibility of…
Building a house using a printer?


                                            Click Here!




       Print Our House. Print Our Future.
Made Possible With

        Contour Crafting Technology




                     Print Our House. Print Our Future.
Background of Contour Crafting
 Contour Crafting - 3D printing technology in Construction
   Invented in 2006 By Dr. Beshrokh Khoshnevis
    Developed a Successful Concrete laying Prototype
    Prototype able to “Print” 6 Foot Concrete Walls
    Received Funding from Caterpillar Inc. In 2008
    Supported By NASA




                                                             Dr Beshrokh Khoshnevis
                        Print Our House. Print Our Future.
Common Misconceptions
 Contour Crafting printer can only be used once at one
  particular location (not portable).
   It can be disassembled and reused in other locations.
 Contour Crafting is an all-in machine, covering all aspects from
  landscaping, foundation laying, all the way to construction
  and finishing processes.
   It specializes in construction and finishing
 Contour Crafting is cheaper due to the economies of scale in
  mass producing houses.
   Contour Crafting is cheaper due to the cost-savings reaped for
     minimal manual labor and high degree of process automation.


                   Print Our House. Print Our Future.
Contour Crafting
    Uses the Idea from one form of 3D Printing Technology
    “Additive Manufacturing”
    Building layer by layer till 3D Model is Complete
    Able to do Automated Plumbing, Electrical networking.
                  Raw Materials
                   Eg. Concrete          Prefabricated Parts   Additional Finishes
Input Design

 CAD Design          Contour            “Prints” the House          A “Newly”
                     Crafting            Using the Design          Constructed
  Of Building        Machine                   input                  House

                Setting Up of Area
                          Print Our House. Print Our Future.
Lets See How It Works!




    Print Our House. Print Our Future.
Current Milestones of Contour Crafting
                   Technology
 Current Technology is still in its Infancy stages
 What Contour Crafting Technology has achieved
     Able to Build a 6 Feet Tall Custom Made Concrete Wall
     Design of Contour Crafter Machine Completed
     Amid Testing and Commercialization
     Building a Complete House (In the Works)

 Some Limitations
     Height Limit: 1-3 Stories Buildings
     Require Tow Vehicle
     Requires Area for Movable, Retractable Rails
     Cannot Print all Materials (eg Glasses)

                    Print Our House. Print Our Future.
Imagine if We are the Ones Commercializing
             this Technology?




      PRINT-A-HOUSE Inc.
           Our Corporate Profile




            Print Our House. Print Our Future.
Print A House Company Profile
 Vision: “Print Our House, Print Our Future”
 Mission:
     “We aspire to print safe, affordable housing for the future.”


 Strategic Positioning:
  To be the market leader in the Chinese residential construction
  industry in 2020.

 Website: www.PrintAHouse.spreadthelovesg.com

                     Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
               Value Propositions
                     “8 Key Aspects”



   Speed       Work Safety           Labour        Monetary
                                                     Cost


               Strength &
Environment                         Flexibility    Accessibility
                 Safety

              Print Our House. Print Our Future.
Speed of Construction
 * Assuming 2500 square foot house:

              Conventional     Conventional     Conventional   Contour
                                                               Crafting

   Type         Stick-Built      Modular /        Log Homes    Printing
                                  Prefab
Time Needed     6 Months         8-10 weeks        7 Months    Projected
                                                               20 hours




                      Print Our House. Print Our Future.
Speed of Construction
 Automate Repetitive Manual Labor
   Brick Laying
   Cementing
   Laying of Support Structures (Steel Rods, etc)
 Logistics
   Less Materials and Machines to be Transported
   Streamlined On-site Processes
 24 hour Continuous Operation



                   Print Our House. Print Our Future.
Work Safety during Construction




         Print Our House. Print Our Future.
Work Safety during Construction




         Print Our House. Print Our Future.
Work Safety during Construction




         Print Our House. Print Our Future.
Work Safety during Construction




         Print Our House. Print Our Future.
Work Safety during Construction
 Contour Crafting
   Less Injuries in Construction and Transportation-Related
      Activities
     Less Worker Skin Contact with Hazardous Substances
     Less exposure to Airborne Substances such as Dust and
      Chemicals
     Less Noise Exposure
     Easier to Establish Procedures for Hazard and Failure Analysis
      during Construction




       Print Our House. Print Our Future.
Labor (Manpower)
    Type                     Conventional                    Contour Crafting
    Type of      • Labor                                • Mostly Machinery
Resources Used       • Construction industry in UK         • Printer (Movable
                       employs 3 million people               Gantry)
                     • >60% are low-skilled laborers       • Concrete Mixer
                                                           • Excavator
                 • Machineries                             • Bulldozer
                    • Concrete Mixer                       • Caterpillar
                    • Excavator
                    • Bulldozer
                    • Crane
                    • Caterpillar




                        Print Our House. Print Our Future.
Monetary Cost
Portion of    Segment              Conventional              Contour Crafting
  Cost       Responsible

 20-25%       Financing     • Long Construction             • Streamlined
                              Process                         Construction
                                                              Process (Cost
                                                              Reduction)

 25-30%       Materials     • Large Amount of Waste         • Minimal Waste
                              Generated                     • Wasteless Process
                                                              (Cost Reduction)


 45-55%        Labor        • Labor Intensive               • Mainly
                                                              Machineries (Cost
                                                              Reduction)



                       Print Our House. Print Our Future.
Monetary Cost
 Major Portion of Cost: Labor

   Efficiency of Human Labor < Efficiency of Machinery
   Human Errors > Machine Errors
   Streamlined Process  Shorter Construction Time Man
     Hours Saved

   Not all processes can be replaced by machineries




                   Print Our House. Print Our Future.
Environment
   Type                     Traditional                        Contour Crafting
Construction   • Transportation of Materials           • Minimal Construction Waste
   Waste           • Damaged materials need to            • Optimal Allocation of
                      be replaced                            Resources
                   • Delivery of large quantities of      • Optimal Use of Raw
                      materials require temporary            Materials
                      storage, which adds on to the
                      waste generated

               • CIRIA reported an estimated 72
                 million tonnes of construction
                 waste produced annually.

               • Nature of Materials
                  • May not be easy to be
                     recycled or reused
                            • Plastic
                            • Plaster Board
                            • Asbestos
Environment
     Type                           Traditional                                   Contour Crafting

Water Pollution   •   Poisoning of Groundwater                      •   Clean Construction
                        • Pollutants such as diesel, oil and pant         • Materials are input into the 3D
                            can soak into the groundwater, a                  printer
                            source of human drinking water                • Concrete is being printed out in a
                        • Much more difficult to treat than                   systematic and clean manner
                            surface water                                 • Minimal silt and soil being produced
                  •   Murky waterways                                         or utilized
                        • Silt and soil runs into natural                 • Pollutants are minimized as
                            waterways                                         construction is done cleanly,
                        • Restricts sunlight filtration                       reducing the need to wash the
                        • Destroys aquatic life                               structure after building it.

 Air Pollution    •   Reduction of Air Quality                      •   Air Quality Maintained or Improved
                        • Dust Particles                                  • Clean Building
                              • Concrete, Cement, Wood,                          • Minimal Dust Particles
                                  Stone, Silica                           • Reduced Use of Diesel Tractors and
                  •   Health Problems                                         Trucks
                        • Respiratory Illness                       •   Minimal Health Problems
                        • Asthma                                          • Improved Air Quality
                        • Bronchitis                                •   Minimal Carbon Footprint
                  •   Sources                                             • Reduced Use of Diesel Tractors and
                        • Diesel engine exhausts of vehicles &                Trucks
                            heavy equipment
Environment




Print Our House. Print Our Future.
Strength & Safety of Structure
 Normal structure: 3000-6000 psi (pounds per square inch)
 Contour structure: up to 10000 psi
 Hollow walls
   Does not compromise structural strength
   Save materials
   Good heat conduction characteristics
 Materials: Mix of composite fibres, concrete and other
  materials not disclosed




Print Our House. Print Our Future.
Flexibility in Designing
 Allows mass market production for faster and cheaper construction

 Also, allow customizations of design: just need to make changes in the
   computer programming & CAD

 Able to build various type of building with different configurations




                      Print Our House. Print Our Future.
Accessibility to Masses
 Can execute intricate architectural features without compromising on
   safety
    Current linear support building: weak in strength
    Eg: Adobe structure in Iran: less known and need expertise known by few people




• Able to mimic pattern
• Accessible to mass public instead of select few
                          Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
       Target Market




   Print Our House. Print Our Future.
Opportunities in China Market




        Print Our House. Print Our Future.
Why China Construction Market?




        Print Our House. Print Our Future.
High Demand for Construction
 World’s Largest Construction Market (2010)




                     Print Our House. Print Our Future.
Rapid Urbanization




Extracted from :http://www.rba.gov.au/publications/bulletin/2012/sep/3.html
           Print Our House. Print Our Future.
Specific Target Market Segment

    PRINT-A-HOUSE, INC.
     Which Construction Submarket in
                 China?


Commercial            Residential                 Industrial

                Low Rise Sub-Urban
             Print Our House. Print Our Future.
Why Low Rise Sub-Urban Residential Market?
 Migration of Rural Population to Sub Urban Towns




                                  New suburban development in Shenyang, China


                      Print Our House. Print Our Future.
Why Low Rise Sub-Urban Residential Market?
 Rising China Middle Class




                       Print Our House. Print Our Future.
Why Low Rise Sub-Urban Residential Market?
 Increase In Earning & Spending Power of China’s Middle Class




                      Print Our House. Print Our Future.
Low Rise Sub–Urban Market
 Low Rise (1-3 Stories) Buildings Due to Limitation of Current
  Contour Crafting Technology

 Sub-Urban Huge Potential Growth for the Next 10 Years
 Strong Demand from Rapidly Growing Middle Class
 Growing Developer Presence in Sub- Urban Market
 Larger Land Areas for Low Density Building Developments



                   Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
 Problems in China Market




    Print Our House. Print Our Future.
Problem With Quality
With Rapid Construction
 Article (13th Sept 2012):
                                                          Hutchison Whampoa boss Li Ka-shing
       “Quality problems afflict Hutchison Whampoa's Guangzhou
                               apartments”

 Housing project Yicuiwan built by Hutchison Whampoa in the
   Guangdong provincial capital was plagued by quality problems.

 A result of lax construction and substandard materials
 In 2005, the Beijing Yicuiyuan project also suffered Similar
   problems.

 Persistent problem that still plague china’s construction sector all
   over china
                     Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
      Value Capture




   Print Our House. Print Our Future.
Value Capture

                  • Direct Sales
                  • Fee Based Machine Rental
 Construction     • Fee Services (Consultation &
 Firms (Main)       Maintenance)




                  • Fee Based Machine Rental
Households/DIY    • Fee Services (Consultation &
                    Maintenance)
 (Alternative)



                 Print Our House. Print Our Future.
Cross Subsidization Opportunity
                 • Cheaper Printer
                 • Charge for Maintenance &
 Construction      Servicing
 Firms (Main)    • Supplier of Raw Materials
                   Required




                 • Cheaper Printer Rental
Households/DIY   • Charge for Consultation/Design
                   Cost
 (Alternative)   • Supplier of Raw Materials
                   Required


                 Print Our House. Print Our Future.
Our Customers
Mass Market, Upscale Residential Construction Companies




               Print Our House. Print Our Future.
Competition Analysis
 First Mover in On Site Automated Construction Technologies
 Main Competitors:
   Construction equipment manufacturing company
     Limited Extend
   Concrete Blocks Manufacturing Providers
     Direct competition

 Construction equipment                   Concrete Block Manufacturing
 manufacturing companies                           Providers




                  Print Our House. Print Our Future.
Difficulties for Market
                Penetration
 Resistance to Change (High Switching Cost)
   For construction companies already investing in those
     equipment (high sunk cost)

 Skeptical about New Technologies
   Consumers tend to be Less receptive about new, untested Products

 Complex Nature of China’s Construction Industry
   Relies on Good Network/Relationships
   High Corruption


                    Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
   Scope of Activities




   Print Our House. Print Our Future.
Scope of Activities (Design)
 Vertical Disintegration
   Design Process: Traditionally, part of construction company
   Lower barrier of entry for individual/aspiring freelancers
 Opportunities:
   Designing of Dream Houses                           Operations

   Online Platform for House designs
     Masses

                                                        Construction
                                                         Company
                                       Design                          Engineering




                   Print Our House. Print Our Future.
Scope of Activities (Supply Chain)
 Change of Focus of Activities
   Focus of Supply Chain Management
   Managing Raw Materials instead of Human Resources
 Opportunities:
   Direct Control over Raw Materials
   Putting Human Capital Resources to Efficient Use
 Discontinuity                                          Switching Flow
   Off Site Construction of Prefabricated Walls
   Mismatch of Prefabricated Parts
   Multiply Sub Contractors


                    Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
    Strategic Control




   Print Our House. Print Our Future.
Strategic Control Analysis
Opportunities                                      Threats
• Complex technology                               • Ignorance about existing techs +
   - Possible discontinuity of conventional          Resistance to new/unproven tech
     manufacturing methods
   - Lower costs (mainly labor) for construction   • Cannot replace mass production at the
     firms                                           moment
   - Enables small businesses and consumers
   - Green                                         • Emerging big shark competitors in
                                                     market (hostile takeover)
• Services                                            - Better branding
    - Combines design, social sharing, web            - R&D funding
       services, and physical products                - Integral industry architecture
                                                      - Complementary assets
• Intellectual property protection e.g. patents,            Possible “shakeout”
  copyright against imitation
                                                   • New entrants with similar technology
• CAD software strategy (standard)
                                                   • Government collaboration
• Disruptive technology                               • Protection of Chinese residential
    • Revolutionize suburban residential market          construction industry against
       through streamlined of construction process       foreign invasion
    • Labor-intensive to knowledge-intensive
Appropriability Regime
 Protect first entrant advantage
   IP protection
     Copyright: DMCA 1998 on design
     Patent: Contour Crafting technology
   Standard CAD software
     Licensed (China-specific)
   Regulations in China
     Scale effects (spread of intricate CAD designs)
     Better control of complementary assets (the whole package) and
       integral industry architecture
        Vertical integration


                     Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
    Impact Analysis




   Print Our House. Print Our Future.
Impact Analysis
 Socio-political Impact:
   High level of Retrenchment in construction labor market
   BUT:
       Create jobs in a more knowledge-intensive workforce (designers, computer
        programmers, engineers, etc.)
       Reduce corruption

 Economic Impact
   Rapid infrastructure development to support the fast growing economy
   Optimal utilization of raw materials, hence lower the costs for the
      construction firms

 Environmental Impact
   Less pollution
   Less wastage: conservation of resources



                       Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
        Conclusion




   Print Our House. Print Our Future.
Conclusions
 Outlook:
   Industry-wide use in 5-8 years time
   Few hundred thousand dollars per machine
 How Print-A-House can influence the future of construction
  industry
   Shift from labor-intensive towards a more knowledge-intensive
    construction industry
   A safer, cheaper, faster construction process
   Revolutionary advancement in the current construction
    technology in our target market
   Though still hindered with limitation it has Huge Potential

                    Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
Thank you for your attention




     Print Our House. Print Our Future.
PRINT-A-HOUSE, INC.
             Q&A




   Print Our House. Print Our Future.

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Biz Model for "Print a House"

  • 1. Print-A-House, Inc. Final Presentation for MT4002 Technology Management Strategy 6th November 2012 By: Vincent Jayalie (U094718J) Lee Jin Yuan (U094655L) Vincent (U096043R) Clovis Chew Xuan Hao (A0067193Y) Beatrix Tan (U094727U) Print Our House. Print Our Future.
  • 2. Presentation Content  Introduction  History and Prospect of Contour Crafting  Contour Crafting – “Additive Manufacturing” Technology in Construction  Milestones of Contour Crafting Technology  Corporate Profile: Print-A-House, Inc.  Corporate Vision, Mission and Strategic Positioning  Value Proposition: How is it applicable to our target market?  Value Capture  Scope of Activities  Strategic Control of Technology  Impact Analysis  Conclusion: How Print-A-House can influence the future of the construction industry  Q &A Print Our House. Print Our Future.
  • 3. Contour Crafting Introduction Print Our House. Print Our Future.
  • 4. Conventional Construction  Traditional brick-laying methods  Pre-fabrication processes : Parts/Modules manufactured off- site, then assembled together on the construction site  Labor-intensive with high degree of repetition Print Our House. Print Our Future.
  • 5. Imagine the possibility of… Building a house using a printer? Click Here! Print Our House. Print Our Future.
  • 6. Made Possible With Contour Crafting Technology Print Our House. Print Our Future.
  • 7. Background of Contour Crafting  Contour Crafting - 3D printing technology in Construction  Invented in 2006 By Dr. Beshrokh Khoshnevis  Developed a Successful Concrete laying Prototype  Prototype able to “Print” 6 Foot Concrete Walls  Received Funding from Caterpillar Inc. In 2008  Supported By NASA Dr Beshrokh Khoshnevis Print Our House. Print Our Future.
  • 8. Common Misconceptions  Contour Crafting printer can only be used once at one particular location (not portable).  It can be disassembled and reused in other locations.  Contour Crafting is an all-in machine, covering all aspects from landscaping, foundation laying, all the way to construction and finishing processes.  It specializes in construction and finishing  Contour Crafting is cheaper due to the economies of scale in mass producing houses.  Contour Crafting is cheaper due to the cost-savings reaped for minimal manual labor and high degree of process automation. Print Our House. Print Our Future.
  • 9. Contour Crafting  Uses the Idea from one form of 3D Printing Technology  “Additive Manufacturing”  Building layer by layer till 3D Model is Complete  Able to do Automated Plumbing, Electrical networking. Raw Materials Eg. Concrete Prefabricated Parts Additional Finishes Input Design CAD Design Contour “Prints” the House A “Newly” Crafting Using the Design Constructed Of Building Machine input House Setting Up of Area Print Our House. Print Our Future.
  • 10. Lets See How It Works! Print Our House. Print Our Future.
  • 11. Current Milestones of Contour Crafting Technology  Current Technology is still in its Infancy stages  What Contour Crafting Technology has achieved  Able to Build a 6 Feet Tall Custom Made Concrete Wall  Design of Contour Crafter Machine Completed  Amid Testing and Commercialization  Building a Complete House (In the Works)  Some Limitations  Height Limit: 1-3 Stories Buildings  Require Tow Vehicle  Requires Area for Movable, Retractable Rails  Cannot Print all Materials (eg Glasses) Print Our House. Print Our Future.
  • 12. Imagine if We are the Ones Commercializing this Technology? PRINT-A-HOUSE Inc. Our Corporate Profile Print Our House. Print Our Future.
  • 13. Print A House Company Profile  Vision: “Print Our House, Print Our Future”  Mission: “We aspire to print safe, affordable housing for the future.”  Strategic Positioning: To be the market leader in the Chinese residential construction industry in 2020.  Website: www.PrintAHouse.spreadthelovesg.com Print Our House. Print Our Future.
  • 14. PRINT-A-HOUSE, INC. Value Propositions “8 Key Aspects” Speed Work Safety Labour Monetary Cost Strength & Environment Flexibility Accessibility Safety Print Our House. Print Our Future.
  • 15. Speed of Construction * Assuming 2500 square foot house: Conventional Conventional Conventional Contour Crafting Type Stick-Built Modular / Log Homes Printing Prefab Time Needed 6 Months 8-10 weeks 7 Months Projected 20 hours Print Our House. Print Our Future.
  • 16. Speed of Construction  Automate Repetitive Manual Labor  Brick Laying  Cementing  Laying of Support Structures (Steel Rods, etc)  Logistics  Less Materials and Machines to be Transported  Streamlined On-site Processes  24 hour Continuous Operation Print Our House. Print Our Future.
  • 17. Work Safety during Construction Print Our House. Print Our Future.
  • 18. Work Safety during Construction Print Our House. Print Our Future.
  • 19. Work Safety during Construction Print Our House. Print Our Future.
  • 20. Work Safety during Construction Print Our House. Print Our Future.
  • 21. Work Safety during Construction  Contour Crafting  Less Injuries in Construction and Transportation-Related Activities  Less Worker Skin Contact with Hazardous Substances  Less exposure to Airborne Substances such as Dust and Chemicals  Less Noise Exposure  Easier to Establish Procedures for Hazard and Failure Analysis during Construction Print Our House. Print Our Future.
  • 22. Labor (Manpower) Type Conventional Contour Crafting Type of • Labor • Mostly Machinery Resources Used • Construction industry in UK • Printer (Movable employs 3 million people Gantry) • >60% are low-skilled laborers • Concrete Mixer • Excavator • Machineries • Bulldozer • Concrete Mixer • Caterpillar • Excavator • Bulldozer • Crane • Caterpillar Print Our House. Print Our Future.
  • 23. Monetary Cost Portion of Segment Conventional Contour Crafting Cost Responsible 20-25% Financing • Long Construction • Streamlined Process Construction Process (Cost Reduction) 25-30% Materials • Large Amount of Waste • Minimal Waste Generated • Wasteless Process (Cost Reduction) 45-55% Labor • Labor Intensive • Mainly Machineries (Cost Reduction) Print Our House. Print Our Future.
  • 24. Monetary Cost  Major Portion of Cost: Labor  Efficiency of Human Labor < Efficiency of Machinery  Human Errors > Machine Errors  Streamlined Process  Shorter Construction Time Man Hours Saved  Not all processes can be replaced by machineries Print Our House. Print Our Future.
  • 25. Environment Type Traditional Contour Crafting Construction • Transportation of Materials • Minimal Construction Waste Waste • Damaged materials need to • Optimal Allocation of be replaced Resources • Delivery of large quantities of • Optimal Use of Raw materials require temporary Materials storage, which adds on to the waste generated • CIRIA reported an estimated 72 million tonnes of construction waste produced annually. • Nature of Materials • May not be easy to be recycled or reused • Plastic • Plaster Board • Asbestos
  • 26. Environment Type Traditional Contour Crafting Water Pollution • Poisoning of Groundwater • Clean Construction • Pollutants such as diesel, oil and pant • Materials are input into the 3D can soak into the groundwater, a printer source of human drinking water • Concrete is being printed out in a • Much more difficult to treat than systematic and clean manner surface water • Minimal silt and soil being produced • Murky waterways or utilized • Silt and soil runs into natural • Pollutants are minimized as waterways construction is done cleanly, • Restricts sunlight filtration reducing the need to wash the • Destroys aquatic life structure after building it. Air Pollution • Reduction of Air Quality • Air Quality Maintained or Improved • Dust Particles • Clean Building • Concrete, Cement, Wood, • Minimal Dust Particles Stone, Silica • Reduced Use of Diesel Tractors and • Health Problems Trucks • Respiratory Illness • Minimal Health Problems • Asthma • Improved Air Quality • Bronchitis • Minimal Carbon Footprint • Sources • Reduced Use of Diesel Tractors and • Diesel engine exhausts of vehicles & Trucks heavy equipment
  • 27. Environment Print Our House. Print Our Future.
  • 28. Strength & Safety of Structure  Normal structure: 3000-6000 psi (pounds per square inch)  Contour structure: up to 10000 psi  Hollow walls  Does not compromise structural strength  Save materials  Good heat conduction characteristics  Materials: Mix of composite fibres, concrete and other materials not disclosed Print Our House. Print Our Future.
  • 29. Flexibility in Designing  Allows mass market production for faster and cheaper construction  Also, allow customizations of design: just need to make changes in the computer programming & CAD  Able to build various type of building with different configurations Print Our House. Print Our Future.
  • 30. Accessibility to Masses  Can execute intricate architectural features without compromising on safety  Current linear support building: weak in strength  Eg: Adobe structure in Iran: less known and need expertise known by few people • Able to mimic pattern • Accessible to mass public instead of select few Print Our House. Print Our Future.
  • 31. PRINT-A-HOUSE, INC. Target Market Print Our House. Print Our Future.
  • 32. Opportunities in China Market Print Our House. Print Our Future.
  • 33. Why China Construction Market? Print Our House. Print Our Future.
  • 34. High Demand for Construction  World’s Largest Construction Market (2010) Print Our House. Print Our Future.
  • 35. Rapid Urbanization Extracted from :http://www.rba.gov.au/publications/bulletin/2012/sep/3.html Print Our House. Print Our Future.
  • 36. Specific Target Market Segment PRINT-A-HOUSE, INC. Which Construction Submarket in China? Commercial Residential Industrial Low Rise Sub-Urban Print Our House. Print Our Future.
  • 37. Why Low Rise Sub-Urban Residential Market?  Migration of Rural Population to Sub Urban Towns New suburban development in Shenyang, China Print Our House. Print Our Future.
  • 38. Why Low Rise Sub-Urban Residential Market?  Rising China Middle Class Print Our House. Print Our Future.
  • 39. Why Low Rise Sub-Urban Residential Market?  Increase In Earning & Spending Power of China’s Middle Class Print Our House. Print Our Future.
  • 40. Low Rise Sub–Urban Market  Low Rise (1-3 Stories) Buildings Due to Limitation of Current Contour Crafting Technology  Sub-Urban Huge Potential Growth for the Next 10 Years  Strong Demand from Rapidly Growing Middle Class  Growing Developer Presence in Sub- Urban Market  Larger Land Areas for Low Density Building Developments Print Our House. Print Our Future.
  • 41. PRINT-A-HOUSE, INC. Problems in China Market Print Our House. Print Our Future.
  • 42. Problem With Quality With Rapid Construction  Article (13th Sept 2012): Hutchison Whampoa boss Li Ka-shing “Quality problems afflict Hutchison Whampoa's Guangzhou apartments”  Housing project Yicuiwan built by Hutchison Whampoa in the Guangdong provincial capital was plagued by quality problems.  A result of lax construction and substandard materials  In 2005, the Beijing Yicuiyuan project also suffered Similar problems.  Persistent problem that still plague china’s construction sector all over china Print Our House. Print Our Future.
  • 43. PRINT-A-HOUSE, INC. Value Capture Print Our House. Print Our Future.
  • 44. Value Capture • Direct Sales • Fee Based Machine Rental Construction • Fee Services (Consultation & Firms (Main) Maintenance) • Fee Based Machine Rental Households/DIY • Fee Services (Consultation & Maintenance) (Alternative) Print Our House. Print Our Future.
  • 45. Cross Subsidization Opportunity • Cheaper Printer • Charge for Maintenance & Construction Servicing Firms (Main) • Supplier of Raw Materials Required • Cheaper Printer Rental Households/DIY • Charge for Consultation/Design Cost (Alternative) • Supplier of Raw Materials Required Print Our House. Print Our Future.
  • 46. Our Customers Mass Market, Upscale Residential Construction Companies Print Our House. Print Our Future.
  • 47. Competition Analysis  First Mover in On Site Automated Construction Technologies  Main Competitors:  Construction equipment manufacturing company  Limited Extend  Concrete Blocks Manufacturing Providers  Direct competition Construction equipment Concrete Block Manufacturing manufacturing companies Providers Print Our House. Print Our Future.
  • 48. Difficulties for Market Penetration  Resistance to Change (High Switching Cost)  For construction companies already investing in those equipment (high sunk cost)  Skeptical about New Technologies  Consumers tend to be Less receptive about new, untested Products  Complex Nature of China’s Construction Industry  Relies on Good Network/Relationships  High Corruption Print Our House. Print Our Future.
  • 49. PRINT-A-HOUSE, INC. Scope of Activities Print Our House. Print Our Future.
  • 50. Scope of Activities (Design)  Vertical Disintegration  Design Process: Traditionally, part of construction company  Lower barrier of entry for individual/aspiring freelancers  Opportunities:  Designing of Dream Houses Operations  Online Platform for House designs Masses Construction Company Design Engineering Print Our House. Print Our Future.
  • 51. Scope of Activities (Supply Chain)  Change of Focus of Activities  Focus of Supply Chain Management  Managing Raw Materials instead of Human Resources  Opportunities:  Direct Control over Raw Materials  Putting Human Capital Resources to Efficient Use  Discontinuity Switching Flow  Off Site Construction of Prefabricated Walls  Mismatch of Prefabricated Parts  Multiply Sub Contractors Print Our House. Print Our Future.
  • 52. PRINT-A-HOUSE, INC. Strategic Control Print Our House. Print Our Future.
  • 53. Strategic Control Analysis Opportunities Threats • Complex technology • Ignorance about existing techs + - Possible discontinuity of conventional Resistance to new/unproven tech manufacturing methods - Lower costs (mainly labor) for construction • Cannot replace mass production at the firms moment - Enables small businesses and consumers - Green • Emerging big shark competitors in market (hostile takeover) • Services - Better branding - Combines design, social sharing, web - R&D funding services, and physical products - Integral industry architecture - Complementary assets • Intellectual property protection e.g. patents,  Possible “shakeout” copyright against imitation • New entrants with similar technology • CAD software strategy (standard) • Government collaboration • Disruptive technology • Protection of Chinese residential • Revolutionize suburban residential market construction industry against through streamlined of construction process foreign invasion • Labor-intensive to knowledge-intensive
  • 54. Appropriability Regime  Protect first entrant advantage  IP protection  Copyright: DMCA 1998 on design  Patent: Contour Crafting technology  Standard CAD software  Licensed (China-specific)  Regulations in China  Scale effects (spread of intricate CAD designs)  Better control of complementary assets (the whole package) and integral industry architecture  Vertical integration Print Our House. Print Our Future.
  • 55. PRINT-A-HOUSE, INC. Impact Analysis Print Our House. Print Our Future.
  • 56. Impact Analysis  Socio-political Impact:  High level of Retrenchment in construction labor market  BUT:  Create jobs in a more knowledge-intensive workforce (designers, computer programmers, engineers, etc.)  Reduce corruption  Economic Impact  Rapid infrastructure development to support the fast growing economy  Optimal utilization of raw materials, hence lower the costs for the construction firms  Environmental Impact  Less pollution  Less wastage: conservation of resources Print Our House. Print Our Future.
  • 57. PRINT-A-HOUSE, INC. Conclusion Print Our House. Print Our Future.
  • 58. Conclusions  Outlook:  Industry-wide use in 5-8 years time  Few hundred thousand dollars per machine  How Print-A-House can influence the future of construction industry  Shift from labor-intensive towards a more knowledge-intensive construction industry  A safer, cheaper, faster construction process  Revolutionary advancement in the current construction technology in our target market  Though still hindered with limitation it has Huge Potential Print Our House. Print Our Future.
  • 59. PRINT-A-HOUSE, INC. Thank you for your attention Print Our House. Print Our Future.
  • 60. PRINT-A-HOUSE, INC. Q&A Print Our House. Print Our Future.