1. The emergence of new networked business model from technology innovation An analysis of 3D printing design enterprises Cautela, c.. Pisano, P., & Pironti, M. (2014). Group 2 Juhana Harmanen Helena Henno Elli Leino Valeriya Zhuvertseva

2. Discuss in detail the business model of Fab Labs! Find additional information, in addition to the information given in the article. What strengths does Fab Labs business model have? What weaknesses does it have? Give your own ideas on how to further develop the business model of Fab Labs Instructions

3. Presentation outline ● Article in brief ● The Fab Lab business model ● Strengths and weaknesses in the Fab Lab business model ● Taking the business model further ● Conclusions

4. ARTICLE IN BRIEF (½) ● Research question of the paper: What are the main elements of the business models adopted by design enterprises that use 3-D printing technology, and how do the features of this technology interact with and shape the 3-D printing industry's business models? ● 3 case studies: ○ Quirky ○ i.materialise ○ Fab Labs Companies providing 3-D prototyping as a service

5. ARTICLE IN BRIEF (2/2) ● Proposition 1: 3-D printing technology encourages the creation of open business models using crowdsourcing. ● Proposition 2: 3-D printing technology allows for the development of different distribution strategies ● Proposition 3: The open business model induces 3-D design companies to achieve profitable product portfolio through providing a wide variety of customized and low-volume products ● Proposition 4: 3-D printing ventures require dynamic capabilities related to network and market management, and project selection

6. The Fab Lab business model

7. Fab Lab (fabrication laboratory) is not exactly a business … it is a worldwide network of open access digital manufacturing labs started by MIT. FabFoundation governs the concept. To qualify as a Fab Lab there must be:  Free public access  Certain set of manufacturing tools and machines (3D- printers, CNC-tool, lasercut) & open source software  Participate in the world wide Fab Lab community

8. … But many businesses have emerged from the platform Like http://formlabs.com/ http://www.makerbot.com/ http://www.modk.it/ https://www.ponoko.com/ https://ultimaker.com/ FabFi http://eu.minidrive.bynifty.com/

9. There are two fab labs in Finland So go and try for yourself Aalto Fab Lab http://fablab.aalto.fi/sit e/ Oulu Fab Lab https://www.fablabs.io/fab laboulu

10. Aalto Fab Lab Aalto Fab Lab is 100% funded by the university, “with the budget cuts, that’s a dangerous place to be!”, says Charlie Banthorpe, the Fab Lab studio host.

11. Strengths and weaknesses in Business Model

12. Fab Lab Concept Innovation Support ● product-service- system ● innovation journey ● networked competencies ● ecosystem partners ● facilities to support Production Facilitator ● use of production equipment ● personal production process ● facilities are core offering ● access ● expertise

13. Business Model Strengths and Weaknesses Weaknesses Risk of exploding production and consumption of easy-to-make, easy-to throw-away gadgets → High need for regulated production and waste-management in the fablabs More developed institutional and regulatory environment is needed to maximize the effects of Fab Labs Increasing ‘Competition’: Hackerspaces, Maker spaces, Techshops Strengths Facilitates commercialization of research at higher education institutions Enables design and innovation for recycling, re-manufacturing, and feeding user-led prototypes into sustainable local enterprise Overcomes the poor availability of spare parts, high-tech and customized objects The closest connection to the universities and research centers Network effects

14. Taking the business model further

15. Alternative Business models for Fab Lab Enabler business model Education business model Incubator business model Replicated / Network business model

16. Requires hiring individuals with entrepreneurial disposition executive engagement and commitment to turn good and proven concepts into real business Enabler business model for Fab Lab Launch new Labs or provide maintenance, supply chain or similar services for existing Labs. Wolcott & Lippitz (2007) Assumes good ideas are available within individuals and teams are willing to pursue them Provides clear criteria for selecting opportunities to pursue applying for funding guidelines transparency in decision making well-defined engagement from senior management

17. Education business model for Fab Lab A global distributed model of education through Fab Labs (with the Fab Academy) where global experts in particular topics can deliver training from local Fab Labs or even from universities/businesses via the Fab Lab video conferencing network. Support P2P learning among users.

18. Incubator business model for Fab Lab Provide infrastructure for entrepreneurs to turn their Fab Lab creations into sustainable businesses. The incubator provides back-office infrastructure, promotion & marketing, seed capital, the leverage of the Fab Lab network and other venture infrastructure to enable the entrepreneur to focus on her areas of expertise.

19. Replicated / Network business model for Fab Lab Provide a product, service or curriculum that operates by utilizing the infrastructure, staff and expertise of a local Fab Lab. Such opportunities can be replicated, sold by and executed at many (or all) local Labs, with sustainable revenue at each location. The leverage of all Labs in the network simultaneously promoting and delivering the business creates strength and reach for the brand."

20. Conclusions

21. Networks (and management of those) are important for newcomers in 3-D printing business. An open business model is one way to leverage those networks. Our opinion: the propositions of the article cannot be generalized to other innovative technologies (small sample size and narrow view) The business model of Fab Labs is strongly depending on their physical presence worldwide. This locality is one of their key competitive advantages. An open business model, such as the Incubator business model, will benefit both the Fab Labs and the local innovator network.

22. Sources C Cautela, P Pisano, M Pironti. 2014. The emergence of new networked business models from technology innovation: an analysis of 3-D printing design enterprises. International Entrepreneurship and Management Journal 10 (3), 487-501. McGarth:Business model: a Discovery driven approach (2010) Casadeus-Masanell, Zhu: Business model innovation and competitive imitation (2013) http://www.fabfoundation.org/ http://p2pfoundation.net/Fab_Labs_-_Business_Models http://sloanreview.mit.edu/article/the-four-models-of-corporate- entrepreneurship/http://sloanreview.mit.edu/article/the-four-models-of-corporate- entrepreneurship/ by Wolcott & Lippitz (2007)