Chapter 16

Part 2: Business Opportunities and

Future Directions
Contents

1. Introduction – Business Opportunity

2. New type of product – Business Opportunity
3. New type of Employment – Business Opportunity
4. Digiproneurship – Business Opportunity
5. Summary – Business Opportunity
1 . Introduction – Business Opportunity for AM
Conventional Manufacturing
Enterprises
1 Principle:
(a) Centralize Product development
(b) Centralize Production
(c) Centralize Distribution
2 Process is centralized occur in very
few locations ==== Reason – to
reduce the resources, labors, or
overhead cost.
3 Off-shore production chances are
high.
4 Energy consumption is higher =
• Resource cost – people, energy,
etc.
• Shipping cost
Additive Manufacturing
Principle:
(a) Distributed Product conceptualization
(b) Distributed creation
(c) Distributed propagation
Process is distributed occur in many
locations ==== Reason – Web 2.0 (second
generation of internet) helps in
propagation of product ideas and
component designs.
Off-shore production chances are less ==
resource costs are not a major proportion
of total costs.
Energy consumption is lower=
• Resource cost – people, energy, etc.
• Shipping cost
 Conventional Manufacturing Additive Manufacturing
Enterprises
5 Employment == Employment ==
disproportionately/high • Proportional employment
underemployment and/or • Employment is not vulnerable
unemployment • to off-shoring resource
• Costs are not a major proportion of
total costs.
• Important Definitions

1. Web 1.0 vs. Web 2.0

Web 1.0 Web 2.0

The first generation of the Internet
Users can not Interact with the owner
E.g. static pages – where user can only
read the information
The second generation of the Internet
Users can interact with and transform
web content.
E.g. Facebook, Ebay, etc.

2. Advantages of Web 2.0 to AM industry

• It helps to collect product ideas from ordinary people from diverse locations.
• perfect for the propagation of product ideas and component designs that can
be created through AM.
3. Digital Entrepreneurship

• Distributed conceptualization + propagation of digital content

4. DigiProNeurship = Web 2.0 + AM industry = Factory 2.0

• Distributed conceptualization + propagation + creation of physical

products
2 . New type of Product – Business Opportunity for AM

• AM + Web 2.0 is giving us various advantages.

1. Person-specific/location-specific and/or event-specific products to be created much

more quickly and at much lower cost.
2. The consumption of non - value adding resources can be radically reduced. (Table
18.1)
3. Further, the amount of factory equipment needed and, therefore, factory space
needed is reduced.
4. Production at point-of-demand.
5. From a business-strategies standpoint, AM technologies are becoming faster,
cheaper, safer, more reliable, and environmentally friendly.
6. Opportunities exist for individuals (e.g., at home); B2B (Business to Business); and
B2C (Business to Consumer).
3 . New type of Employment – Business Opportunity for AM

What kind of employment AM is creating?

1. In distributed models, design can take place anywhere in the world,

and production can take place anywhere else in the world.
2. There is distributed opportunity for various jobs.
3. Regions of persistent unemployment could be reduced.
4. the jobs generated by digiproneurship are resistant to concentration
and out-sourcing.
5. The labor cost component of web 2.0 + AM products is relatively low.
4 . Digiproneurship – Business Opportunity for AM

1. Entrepreneurship - individuals starting new enterprises through the

introduction of new ideas.

2. Digital entrepreneurship - Distributed conceptualization and propagation of

digital content (no production of part)

3. Digiproneurship - represents the next logical step, i.e. creation of physical

good
Advantages of Digiproneurship:

1. Reduce the risks traditionally associated with entrepreneurship.

2. Reduces the need for costly conventional market research.
3. Eliminate the need for physical distribution facilities such as large warehouses.
4. Eliminate many of the uncertainties and up-front expenses

1. Freedom of Creation
2. Figure Prints

• For creation of World of

Warcraft figures

3. Shapeways

• Designs, services, and

products
Further development required in Web 2.0/Advanced information and
communication technology so that non-expert can take advantages of
it.

Further development required in AM in =

1. Lower-cost equipment and materials
2. Minimizing post-processing of products
3. Diversification of machine sizes, speeds and accuracies
5 . Summary

1. AM + WEB 2.0 (Factory 2.0) == Digiproneueship

2. It offers various advantages : costly market research, large ware
house, labour cost, etc.
3. Success of Digipronoeuship depends on: innovative combinations of
aICT and AM.
4. Future will be Factory 2.0 will see the move from static factories to
dynamic and shareable creation.
Thank You!