Business model innovation is a critical aspect of corporate success, so much in fact that more technologically advanced companies have been wiped out by competitors whose sole advantage was an innovative business model. There is no doubt that 3D printing will lead to countless product and service innovations, but its impact on business model innovation is just as important. 3D printing technologies enable us to reconfigure critical elements of a business model, but more than that, they have the power to completely change the way business model innovation is done. Indeed, they bring the ‘rapid prototyping’ paradigm to business model innovation. Business models can become fully adaptive and ‘mobile’, enabling firms to rapidly move across markets and within their own markets, responding instantly to changes in their environment. This session will focus on these new forms of business model innovation and demonstrate how any firm, even those not involved in manufacturing and 3D printing, can benefit from this new way to innovate.

1. BUSINESS MODEL
INNOVATION WITH 3D
PRINTING
Prof. Thierry Rayna
ESG Management School

2. PROF. THIERRY RAYNA
•
Professor of Economics
•
Department of Economics &
Finance
•
Chair of Digital Business
•
ESG Management School, Paris
•
Email: trayna@esg.fr
•
Twitter: @ThierryRayna

3. OUTLINE
• Business
• How
Model Innovation
3D Printing is changing Business Model Innovation
• Learning
from the past

4. PARADOXES
•
Technological innovation = Pinnacle of competitiveness
• Yet
• Less
technologically advanced firms have wiped out more
advanced firms because of a better business model
• Technological
innovation endangers firms as it renders
business model obsolete
• Critical
importance of Business Model Innovation

5. BUSINESS MODEL
INNOVATION
• Is
a means to sustain competitive advantage, especially in a
highly competitive environment
• Among
the most sustainable forms of innovation
• Continuous
business model innovation is an important
capability for every firm seeking success in the long term
• Firms
that put business model innovation at the heart of their
strategies have a higher profitable growth than those that do
not

6. BUT…
•
strong inertia associated with business models (especially when they
are successful)
•
harder to see the rationale for business model innovation and predict
its impact
•
requires a change of mindset: often means abandoning the paradigms
that made the firm successful and which are embedded in the firm’s
existing business model
•
business model innovation requires developing new skills and rejecting
what made previous success

7. BUSINESS MODEL
INNOVATION

8. BUSINESS MODEL COMPONENTS
Value Proposition
Product offering
Service offering
Pricing model
Value
Communication
Communication channels
Ethos and story
Value Capture
Revenue model
Cost structure
Profit allocation
Value Creation
Core competencies
Key resources
Governance
Complementary assets
Value networks
Value Delivery
Distribution Channels
Target market segments

9. EFFECT OF BMI
Radical
Many components, major changes
Disruptive
New industry
New markets
New market
A few components, major changes
Many components, minor changes
Non-consumers
Same market, new customers
One component, minor change
Incremental
Inside
Same customers
Sustaining
Outside

10. 3D PRINTING AND BUSINESS
MODEL INNOVATION

11. THE TWO EFFECTS OF 3D
PRINTING ON BMI
• Innovation
in business model components
• Innovation
in business model innovation

12. INNOVATION IN BUSINESS
MODEL COMPONENTS

13. VALUE PROPOSITION
• Technological
innovation = Changes in value proposition
• New
products
• New
services
• But
that is not all. Oh, no, That is not all…

14. VALUE CREATION
• Main
• In
impact of 3D Printing technologies
particular:
• value
network
• complementary
assets

15. MASS CUSTOMISATION AND
VALUE CREATION
• Large
scale mass customisation
• Co-creation
• Customers
• much
leads to higher value than mass production
become a key component of value network
larger!

16. CROWDSOURCING AND
VALUE CREATION
• Crowdsourcing
already led to significant business model
innovation, even to entirely new form of business models
(Kickstarter, Threadless)
• 3D
Printing takes crowdsourcing a whole step further
• Crowdsourcing
manufacturing (Additer, Kraftwürz and
MakeXYZ) = wider Value Network
• Existing
3D Printers become Complementary Assets

17. VALUE DELIVERY
• 3D
Printing increases Value Delivery
• Distribution
• Target
Channels
Market Segments

18. DISTRIBUTION CHANNELS
• Creates
new Distribution Channels
• Online
services (Cubify Cloud, i.Materialise, Ponoko,
Sculpteo, Shapeways)
• Printshops
(iMakr, MakeBot)
• Customers
themselves
• Can
complement/replace mass-manufacturing

19. TARGET MARKET SEGMENTS
• So
far, niche market segment neglected because of high fixed
costs
• 3D
printing enables to serve niche markets regardless of how
small they are
• monetize
the ‘long tail’!

20. HELPER FOR SQUARE
• Sold
over 1,000 units
• Home
• $8
manufactured
a piece

21. ‘KICKSTARTER 2.0’?
• Success
• Lack
of Kickstarter and the likes, but
of scalability
• (Relatively)
production
significant demand needed to initiate
• May
be complicated to produce more batches (irregular
demand)
• 3D
Printing removes these constraints and is fully scalable

22. POSITIVE FEEDBACK LOOP
3D printers
Value
delivery
Contribution
Service
Equipment
Crowdsourcing
Value
proposition
Masscustomisation
Value
creation

23. VALUE CAPTURE
• Positive
impact:
• Reduced
• Negative
• Far
costs & costs passed on to consumers
impact:
more difficult to capture value
• Innovative
Revenue Model and new Profit Allocation

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25. INNOVATION IN BUSINESS
MODEL INNOVATION

26. 3D PRINTING CHANGES
BUSINESS MODEL INNOVATION
• Beside
changes in components, 3D Printing radically changes
the way to conduct Business Model Innovation
• ‘Mobile’ Business
• Rapid
Models
Prototyping for Business Models

27. ADAPTIVE AND ‘MOBILE’
BUSINESS MODELS
•
Ability to move business model horizontally to existing or new
markets is a key aspect of business model innovation
•
•
•
Often risky, because significant investments have to be made
before even entering the market.
3D Printing reduces costs: products manufactured on demand
with minimal costs
3D printing technologies can enable firm to rapidly move upstream
or downstream and change the length and width of business model

28. RAPID PROTOTYPING FOR
BUSINESS MODEL
•
Business Model Innovation by trial & error
•
•
3D printing technologies enable trying out various business models
at a much lower cost
•
•
Significant risk and costs
size of the testbed actually increases with the adoption of 3D
printing technologies
Ability to rapidly try and test ideas to significantly increase the
speed of business model innovation

29. ADAPTIVE BUSINESS MODEL
RAPID PROTOTYPING
Own market
New market
Upstream
Design
Sideways
Downstream
Related market
Manufacturing
Distribution

30. 3D Printing = Pay As You Go!

31. LEARNING FROM PAST EXPERIENCE:
VALUE CAPTURE IN DIGITAL
INDUSTRIES

32. THE DIGITAL ECONOMY:
A LAND OF OPPORTUNITIES

33. THE DIGITAL ECONOMY:
WHAT MOST COMPANIES ARE TRYING TO DO

34. THE MUSIC INDUSTRY
C. 2010

35. THE DIGITAL ECONOMY:
WHAT GOOGLE IS DOING

36. THE DIGITAL ECONOMY:
WHAT GOOGLE IS DOING

37. THE DIGITAL ECONOMY:
WHAT WE ARE DOING

38. DIGITAL ECONOMICS AIKIDO
• Stop
fighting against nature
• Channel
the strength of
digital economy to your
advantage...
• ... without
harming your
customers

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41. WHAT ROLE FOR
CORPORATIONS?

42. CORPORATIONS =
GATEKEEPERS

43. TAPPING THE FLOW

44. TAPPING THE FLOW

45. TAPPING THE FLOW
Micropayment
Certification service

46. THANK YOU

47. trayna@esg.fr
@ThierryRayna