Professional Documents
Culture Documents
Business Models
for 3D Printing
Seizing opportunities
with a game changing technology
Onno Ponfoort
In cooperation with
Wieke Ambrosius, Laurens Barten, Gijs Duivenvoorde,
Linda van den Hurk, Amir Sabirovic & Erik Teunissen
Successful
Business Models
for 3D Printing
Seizing opportunities
with a game changing technology
Onno Ponfoort
In cooperation with
Wieke Ambrosius
Laurens Barten
Gijs Duivenvoorde
Linda van den Hurk
Amir Sabirovic
Erik Teunissen
Successful Table of Contents
Business Models 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
for 3D Printing 1.1 3D Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
1.2 Issues in business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.3 Berenschot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Seizing opportunities 1.4 Interview partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
with a game changing technology
2. 3D Printing: an overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.1 Historic overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2 Size and growth of the market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.3 Current materials and production methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.4 Benefits of 3D Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.5 Near future developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
2.6 Maker movement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3. Market requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
3.1 The consumer market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
3.2 The business market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
COLOFON 4. Industry specifics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
4.1 Generic propositions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Text Lay Out Printing services 4.2 Industry specific propositions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Onno Ponfoort Gilmar Pattipeilohy Ten Brink
With cooperation from: Translation services
PO Box 41 5. Developing a unique proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
7940 AA Meppel
Wieke Ambrosius Vertaalbureau Bothof B.V. 5.1 Information provision and knowledge sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
The Netherlands
Laurens Barten PO Box 1438 5.2 Enabling services and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Gijs Duivenvoorde 6501 BK Nijmegen ISBN 5.3 Production of tooling and parts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Linda van den Hurk The Netherlands 978-94-903142-1-7
Amir Sabirovic 6. How to join this growing industry? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Erik Teunissen
6.1 Customer orientation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Copyright Berenschot 2014 6.2 Industry expertise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82
www.berenschot.nl 6.3 Clear proposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
6.4 Information provision and knowledge sharing . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
This publication has been put together with the utmost care. The author(s),
6.5 Enabling services and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
editor and publisher accept no liability for any information that is nonet-
heless incomplete or has been included incorrectly. They welcome 6.6 Production of parts and tooling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
any corrections or improvements to the information contained.
7. Conclusion: the 3D printing express is about to leave the station . 101
Copyright obligations have been satisfied where possible. We ask 7.1 From meeting specifications to meeting requirements . . . . . . . . . . . . . . . . . 103
anyone who believes he/she can base any claims on the texts and 7.2 Bright future for those who join the action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
illustrations contained in this book to contact Berenschot.
8. Annexes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Subject to the exceptions stipulated in or pursuant to the Copyright Annex A Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Act 1912, no part of this publication may be reproduced, stored in
an automated database, or published in any form or in any man-
Annex B Overview of production methods and materials . . . . . . . . . . . . . . 110
ner, electronically, mechanically, by photocopying, recording or in any Annex C About the authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
other way, without prior written permission from Berenschot. Annex D The Berenschot Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
6 Successful Business Models for 3D Printing 7
Preface
Additive Manufacturing, or 3D printing how it is referred to nowadays,
will have a major impact on the processes and business models in many
companies. In Siemens we have been involved in many additive manufac-
turing (AM) initiatives, and we use the technology in real life. Just as an
example, we have been able to shorten the maintenance and repair cycle for
our turbines burners from 44 to 4 weeks. We now can repair the tip of the
burner with a metal process solution, whereas formerly we had to replace
the entire burner head. This means we are faster, more sustainable, and the
costs have gone down dramatically. This way we can live up to our promise
to the customer, to support him with better and more sustainable solutions.
CHAPTER 1
Introduction
Everyone is talking about it, every newspaper or magazine
is writing about it: 3D printing revolutionises the way we
make things. Household articles like lamps or vases, per-
sonal items like jewellery and shoes, medical appliances
like hearing aids and prosthesis or industrial products like
airplane buckles or machine tooling: everything can be
improved, made lighter or customised to meet the specific
needs of the end user. And this is all made possible by a
new production method: 3D printing.
1.1 3D Printing
Governments and large companies are investing heavily in 3D printing. In tion in the 3D printing industry. In
February 2014, US president Obama announced that “two public-private Size of the 3D printing market
the 2014 edition, the 3D printing
manufacturing institutes in Chicago and Detroit, with a combined invest- 12 market (which includes machines,
ment of $ 320 million, will put America at the forefront of 21st century 10 materials and services) is estimated
$10,80
manufacturing”.2 The Chinese government has indicated that it sees the 8 to have grown by 39.5 %, to $ 3.07
$ x billion
“development of 3D printing industry as a national strategy to transform 6
billion in 2013. For 2018, Wohlers
our business model in a more innovation-driven way3”. 4
estimates a market value of $ 10.8
$3,07
billion.
2
So will everything be 3D printed?
1.2 Issues in business 0
2013 2013
Well, certainly not everything. For
many parts and products, however,
Customers want the best and the latest. An increasing call for quick time- Source: Wohlers report, 2014
3D printing already offers new and
to-market, continuously decreasing product lifetimes and strict service better solutions. In the near future,
level agreements are the result. This leads to a growing number of product the number of applications and possibilities will only grow. As shown above,
and parts to be delivered and maintained by any company. Thus, inventory companies and governments alike are investing heavily in this technology.
increases and distribution and warehousing costs rise.
Meeting these customer demand and supply chain issues is a particular And how about you?
problem for small and medium-sized enterprises (SMEs), as they lack crit-
ical mass and have limited financial capabilities. But also for multinational
corporations, it is becoming increasingly difficult to fulfil customer needs 1.3 Berenschot
and comply with supply chain and business requirements. Service level
agreements often require delivery of goods within 16 to 24 hours, warranties For a decade, Berenschot consultants have been involved in projects in the
and risks rest almost completely on the shoulders of the Original Equipment 3D printing arena. In 2004, we joined a European project called Custom
Manufacturer (OEM) and CE-marking and accreditation leave little room Fit5. We learned about the promise of delivering individualised products at
to experiment. mass production prices. Afterwards we teamed up with partners in Direct
The result is that enormous, centralised distribution centres and warehouses Spare, to research the possibility of spare part production on demand and on
are needed to secure the availability and supply of products and (spare) location. We discovered that additive manufacturing does provide opportu-
parts during the entire lifetime of the product. For example, the Material nities to organise the supply chain of (spare) parts in new, more sustainable
Support Centre of Airbus Industry typically maintains 4 million parts, 80% and cost efficient ways. At the moment, we are involved in a number of 3D
of which are slow movers. These parts are infrequently requested - if ever printing initiatives.
used at all - and count for less than 20% of the sales. We see the industry growing, but we also see many entrepreneurs and man-
Refraining from producing parts on stock and 3D printing them on demand agers who are still reluctant to step in. “Is this a technology that we should
and on location is still a bridge too far. On the one hand, the technological invest in?”, “Will our customers accept the parts that we produce with this
expertise is not yet available to print everything in the exact same form and technology?” or “Can we already print with the materials that we are used
with the identical characteristics as the original part. Nevertheless, we are to?” are some of the questions we get.
coming closer every month. On the other hand, business metrics, cost levels This publication addresses these and other questions you might have regard-
and legal issues currently prevent us from making full use of the potential ing the opportunities of 3D printing for your organisation. We will give an
of 3D printing. overview of the current state of technology as well as an indication of near
Companies like GE and HP have increased their 3D printing research budg- future developments that you can tap into (Chapter 2). In Chapter 3, we
ets. Financial and industry experts indicate double digit growth for the 3D delve into the variety of requirements in the consumer and business markets.
printing industry. The Wohlers report4 is the leading source of informa-
12 Successful Business Models for 3D Printing 13
We could not have written this publication without the cooperation and
insights of our interview partners6 (companies in alphabetical order):
“In the Strategic Research Agenda for additive manufacturing, of which we at TWI
Ltd. were the key editors, giving more consideration to the value proposition of
AM was one of the recommendations. The Berenschot initiative to research the
current business practices and from that derive a helping hand for others who
want to enter this arena, could not have come on a better moment in time. It is
a very practical guide, offering more do’s than don’ts, that will inspire you to join
this so called 3rd industrial revolution”
€ 24,95