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Contour Crafting for Home Construction
The document outlines a business model for contour crafting, emphasizing its advantages over traditional construction such as reduced time, improved quality, and lower material waste through 3D printing technology. It discusses the addressable market, estimated at $1 trillion annually for one or two floor houses, and various methods of value capture, including selling homes and contour crafting machines. Additionally, it addresses barriers to entry, primarily related to patents and the need for substantial initial investment, while highlighting the importance of strategic control and first mover advantages in the market.
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Contour Crafting for Home Construction
- 1. Business Model forContour Crafting •Timothee Francois Lanfranc Le QuesneA0133779 •Daniel Berek Giuseppe LolloA0133497 •Huang GuozhuA0132443 •Ho Dalun (Darius)A0129445
- 2. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 3. Methods of Manufacturing Subtractive Manufacturing •Waste Material •Requires Skilled Labour to deliver a good job •Time Consuming
- 4. Additive Manufacturing •SavesMaterial •Saves Time •Requires a good design drawn with CAD program •Cost of each part remains the same Methods of Manufacturing
- 5. Traditional Construction Disadvantagesof Traditional Construction •Time Consuming 7 Months to build a house with traditional construction techniques •Not Scalable Logistics Issues Manpower Issues •Requires a huge workforce •Workers are usually unskilled •Quality Issues
- 6. Contour Crafting Howit works •3D Printing on a larger Scale •Contours controlled by trowels Source: http://www.livearchitecture.net/wp-content/uploads/2010/01/khoshnevis_mega-scale-fabrication.pdf
- 7. Contour Crafting Howit works •Patented Layerd Fabrication Technology •3D Printing on a larger Scale •Contour Crafting machine follows a path defined in a software just like 3D printing
- 8. Contour Crafting DisruptiveInnovation •3D Printing Improved and Innovated •Able to overtake traditional forms of construction User Requirements 1900s 2008 2020 2014
- 9. Contour Crafting Disadvantageof Contour Crafting •The foundation has to be built using Traditional Methods •Existing engineering rules and practices •High Switching Costs for Construction Companies
- 10. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 11. Value Proposition •Automation •Reduction of Accidents •Improved Quality of Work •Reduce Wastage •Stronger Structures Built as Compared to Traditional Construction
- 12. Value Proposition Automation •Makes use of CAD drawings •Little to No Supervision required •Saves Time •Saves Money
- 13. Value Proposition Reductionof Accidents •Number of workplace deaths in the construction industry in Singapore in 2012 •Contour Crafting reduces human labour which reduces the risk of accidents occuring46,400 Deaths
- 14. Value Proposition ImprovedQuality of Work •CAD imported files tells Contour Machines exactly what to do •Very low margin of error •Saves Time •Saves Money
- 15. Value Proposition ReduceWastage •Structure is printed layer by layer •Saves Money
- 16. Housing Structures TraditionalStructures •Traditional wall built with Contour Crafting •Firstly, the external shell of the wall is built •Then, the void is filled by pouring concrete Source: http://www.livearchitecture.net/wp-content/uploads/2010/01/khoshnevis_mega-scale-fabrication.pdf
- 17. Housing Structures HoneycombStructures •Used in industries such as aerospace, racing, furniture, etc •As strong as, if not stronger than traditional structures •Uses much lesser material •Saves Money
- 18. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 19. Addressable market Constructionand public work market : $10,000 Billion per year
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- 22. Our market :3.4 $Trillion per year Addressable market
- 23. Our technology :one or two floor houses, that represents 30% of residential construction in the world •Total addressable market : 1 $ Trillion per year Addressable market
- 24. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 25. Methods of valuecapture Our proposition for a 1 storey house •A few thousands dollars vs 100000$ •Including : Foundation Water + electricity Roof
- 26. Methods of valuecapture •Build houses and sell it directly to customers. •Sell or rent contour crafting machines to construction firms. •Sell special cement to firms that have already bought contour crafting machines •Sell a software for easy contour crafting •Sell entire neighborhoods to governments. •Target countries with high growth: India, Indonesia, China, Nigeria.. •Sell contour crafting equipments to NGOs and governments for natural disaster zones.
- 27. Methods of valuecapture •Build higher buildings with contour crafting : target the other 70% of the residential market •Find new methods of contour crafting for more than 3 floors buildings •Invest in R&D
- 28. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 29. Barriers to Entry Just need concrete mixed with composite fiber: not expensive, not rare
- 30. Price of themachines •Investment required for companies •Easier for large companies Large companies has more resources •20% less expensive to finance •25% less expensive materials •45% less expensive labor But the technology is needed Barriers to Entry
- 31. Barriers to Entry:Patents Deployable contour crafting -US 7814937 B2 •Period of legal protection: 2006-2026 •Owner: BehrokhKhoshnevis- University Of Southern California •Composition: Vehicle Nozzle configured to extrudecementitiousmaterial Gantry system configured to becollapsed on the vehicle
- 32. Barriers to Entry:Patents Contour crafting extrusion nozzles -US 8801415 B2 •Period of legal protection: 2008 -2028 •Owner: BehrokhKhoshnevis- University Of Southern California •Composition: an extrusion nozzle a nozzle positioning system a controller configured to direct thenozzle positioning system to move the extrusion nozzle
- 33. Barriers to Entry:Patents Multi-chamber vibrating valve for cementitiousmaterial US 7878789 B2 •Period of legal protection: 2009 -2029 •Owner: BehrokhKhoshnevis- University Of Southern California •Composition: Outlet to extrude the cementitiousmaterial Material flow pathway configured to channelthe cementitiousmaterial to the outlet Vibration-actuated valve interposed in thematerial flow pathway
- 34. Barriers to Entry:Patents Professor BehrokhKhoshnevis ●Professor at University of South California ●Own almost every Contour Craftinng Patents ●Only his company is currently developing the technology with the support of the NASA Good Strategy: Work with him in order to get patent protection until late 2020’s
- 35. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 36. Scope of Activities Maintenance •Supported maintenance service for customers Fabrication & Installation •Build house and electrical &mechanical installation Design •Design of house or designs from customers Sales & Marketing •Contour crafting service & contour crafting machine for rent Manufacturing •Outsource manufacturing of machine and material R&D •Contour crafting machine(hardware &software) and material
- 37. Outline Introduction ValueProposition Addressable Market Methods of Value Capture Barriers to Entry Scope of Activities Methods of Strategic Control
- 38. Methods of StrategicControl First Mover Advantages Economies of Scale in R&D Legal Mechanisms of Protection Complementary Assets Strategic Collaboration
- 39. Methods of StrategicControl First Mover Advantages •Brand loyalty •Technological leadership •Secure scarce resources (contracts) •High switching cost for traditional construction companies Disadvantages •Uncertainty of customers’ requirements •Immature contour crafting market and complements
- 40. Methods of StrategicControl •Economies of Scale in R&D •R&D on contour crafting machine and contour crafting material for big firms (better products, higher profit) Improve the speed, reliability, accurracy, multi-functions of machine Improve the properties of material, such as waterproofing, fire-resistance
- 41. Methods of StrategicControl Legal Mechanisms of Protection Build patent portfolio for Contour Crafting technology Patents of Contour Crafting Technology: US 7814937 B2 -Deployable contour crafting US 8801415 B2 -Contour crafting extrusion nozzles US 7878789 B2 -Multi-chamber vibrating valve for cementitious mater
- 42. Methods of StrategicControl Complementary Assets •Consultation service •Maintenance service •Customized design of house for customers (CAD, BIM) •Online platform & community –sharing of designs
- 43. Methods of StrategicControl Government Agencies Property Developers Construction Companies Strategic Collaboration
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